Profitability, problems and prospects of Indian commercial banks: A comparative assessment

Abstract

This piece of study is conducted to assess profitability, efficiency, problems and future prospects of Indian scheduled commercial banks. Nature of this study is descriptive and exploratory, and fully based on secondary data. Concerned data have been collected from data release of Reserve Bank of India (2021), statistical table relating to banks in India. Besides, various ratios have been taken into consideration in order to draw conclusions such as operating expenses, operating profit, Return on Assets and Return of Equity. A significant difference was assessed amongst three groups of banks in terms of profitability and efficiency. The foreign banks emerged as most efficient and profitable banks followed by private sector and public sector banks. Moreover, as far as problems are concerned, raising NPAs, increasing competition, new innovations and high transaction cost were major cause of concern, on the other hand banking deregulation and recent consolidation by government of India, and vibrant Indian economy can turn out to be game changer for public sector banks.