Abstract
Banking sector constitutes a predominant component of the financial services industry and the performance of any economy, to a large extent, is dependent on the performance of banks. Profitability is the critical deciding factor in performance of the banks. This paper analyses the profitability of banks with the help of DuPont system of financial analysis. This model is applied to five major public sector banks in India. For the purpose of analysis financial and statistical tools (trend analysis, rate of growth, correlation and linear regression) have been used. The result of this study will allows us to perform an analysis of the components that affect profitability and make a comparison between two businesses and/or with the industry aggregate. And, second, it facilitates trend analysis which is useful for detecting the source of a shift in profitability and taking corrective action before it is too late.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
