Financial performance of Banks in India: A study of selected private sector Banks

Abstract

The purpose of this study is to assess the performance of a subset of Indian private sector banks. Examining these particular banks' profitability performance is another goal. Method, Approach, and Design: A sample of eight private banks was chosen for the investigation. The study utilized many statistical tools to evaluate the performance of banks, including the One-Way ANOVA test, descriptive statistics, and the Minimum and Maximum Net Profit Ratio. The study's timeframe spans from 2011–12 to 2022–2023, and all of its data sources are secondary. Conclusions: The study's findings indicate that the chosen banks' net profits differ significantly from one another. HDFC Bank's financial performance is consistently strong because of the substantial profit it makes and the appropriate management style that is used. The findings show that Yes Bank's financial situation is getting worse due to problems with governance, misrepresentations made to clients, insincere investors, a lack of a market-led recovery, liquidity outflows, and non-disclosure policies. In the market, Axis Bank and ICICI Bank are gradually losing share. Practical Implications: The majority of banks currently have a higher percentage of non-performing assets. Many banks undergo liquation and merger/acquisition as a result of this circumstance. In order to provide statistical analysis that would be helpful to investors and bank management teams, this study looks at the current state of a few Indian private sector banks.