PROFITABILITY ANALYSIS OF SELECTED PRIVATE SECTOR BANKS IN INDIA

Financial system in country like India is honoured with Banks as its greatest components. Private sector banks are considered as one of the most influential components in uplifting the country’s economy and to sustain it is essential to have a brief information regarding the earning capacity which indicates and measures the profitability of the banks with use of profitability ratios. Parameters including Net Profit Margin(NPM), Adjusted cash margin, Return on Equity(ROE), Return on Long term funds and Returns on Assets(ROA) are widely used. The manuscript focusses on ICICI, HDFC, AXIS, YES AND KMB Banks as the sample banks and their profitability is interpreted using various statistical tools. Hypothesis was tested using one way ANOVA. Private sector banks were making tremendous efforts in generating and maintaining profit. Among which HDFC Bank served as the outperformer by leading in profitability.