Abstract
The study aims to know the financial performance is analyze using ROA, ROE, ROAA and ROAE. The study on financial performance , liquidity risk management and impact of liquidity risk in both top line and bottom line for selected commercial and private banks in India using e-view software & to know the performance of Indian banks during demonetization and how it has effect the financial performances of banks .The banks need to control and closely monitor the NPL in order to reduce the NPLR with the purpose for better performance of the banks and there is a timely need for the management of the commercial & private banks to maintain their liquidity gap at a safe level in order to avoid the negative impact on the performance of the banks. The risk on bottom line is effect by having low net income earned by banks .The top line performance is effected by more non performing ratio in banks because ROA , ROAE and ROE is showing significant to NPL with P value less than 5 %.
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