An Evaluation of Impact on Macro-Economic Variables in the Financial Performances of Companies

Micro economic variables are having influence and impact of the financial operating process. but macro-economic variables also influence the business environment as a whole. Generally, banks are the institutions which follows many macro-economic factors like bank rates, inflation rates, repo rates and currency value etc. macro-economic variables mostly affecting business operations as per regulations of government and market demand. Macro-economic variables namely inflation rate, monetary policy and fiscal policies of the government regulate business process and introduced policy related rules. So that industries must follow their business process. As per new regulations of motor vehicles instruct that third party insurance must be paid. So that motor vehicles prices were hiked. Due to the implementation of GST consumers’ needs to pay CGST and SGST. Business firms needs to collect GST from their consumers and paid to the government; in this regard, products prices were increased. As consumers we may pay the petrol prices due to tax implications. The financial performance indicators namely Return on Assets, return on Equity, Earnings per share, operating cost ratio, Earnings yield ration were also taken for present study. These economic variable how influence the financial performance of the banks were analysed but three major variables influenced by the banks financial performance remaining GDP and Gross National Income were not influenced financial performance of the banks. Last decades all the macro economic factors were influenced financial performance of the banks. But there may be a possibility each bank managers have own powers to change process and do the needful for the business environment needs.