PROFITABILITY ANALYSIS OF PUBLIC AND PRIVATE SECTOR BANKS IN INDIA – A FUNDAMENTAL APPROACH

Authors:

Aliya Sultana,T. Narayana Reddy,U. M. Gopal Krishna,

DOI NO:

https://doi.org/10.26782/jmcms.spl.5/2020.01.00014

Keywords:

Profitability Analysis,Banks,ANOVA,

Abstract

Fundamental analysis is a method of analyzing the financial data (fundamental data) for determining the stock value of a company which it considers variables such as company’s earnings, dividends, and sales. Fundamental analysis does not look at the behavior variables and does not considering the overall state of the market. Exclusively fundamental analysis focuses on the business companies for determining whether the stock should be bought or sold. In Indian stock market as well economy the position banking industry is very strong. The objective of the study is to analyze the profitability position of the public and private sector banks in India. The data collected from the financial statements of both public sector(State Bank of India-SBI, Bank of Baroda-BOB, Punjab National Bank-PNB) and private sector banks (Hosing Development Finance Corporation-HDFC & Industrial Credit Investment Corporation of India-ICICI) from the period of 2014-2015 to 2018-2019. This analysis helps to the shareholders for taking decision making statements in terms of profitability. The variables used in this study are Operating Profit Margin (OPM), Net Profit Margin (NPM),Return on Capital Employed(ROCE), Earnings per Share (EPS) and Price/Earnings (P/E) ratio

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