Determinants of net profit of public and private sector commercial banks in India(2015-2017)-A non parametric study

Abstract

The Banking sector occupies an essential role in transforming the economy and undergoing significant transformation. During the transition period, many events and policies have taken place. This article illustrates the study conducted on the net profits of private and public sector banks over a period of year 2015 to year 2017. The study has been conducted for selected commercial banks which includes 6 State Bank of India (SBI) and its associates, 20 representing public sector banks and 20 private sector banks. The ranking structure of Net Profitability is primarily studied using the Non-Parametric based " Kruskal Wallis" Test. Inference drawn based on the results obtained from the Kruskal Wallis Test value. Also, the study includes a panel study of the data structure. In respect of the results based on the Kruskal Wallis Test, we have identified the Fixed effects and Random effects for the period of study. The study indicates that only three years shows that the variables influenced the net profit is random.