Abstract

To scrutinize and scan the optimization of banks and its functioning, a world-wide famous and robust indicator DuPont analysis model is implemented confidently since ages. This model has had experience of putting not only banks, but also companies and industries of diversified sections, under estimation. Union Bank of India of public sector is opted for contemplating its performance through DuPont model in this paper. Scrutiny period is designed of 10 years from 2012-13 to 2021-22. Employing the secondary data, trend of Union Bank is examined considering ratios of net profit margin, total asset turnover, equity multiplier and return on equity. Mean, standard deviation, coefficient variance and CAGR (%) is computed along with establishing the correlation between ROE and its financial components using SPSS software 26.0. The overall inferences drawn states that ROE shows fluctuating trend and EM is inversely related to ROE whereas NPM and TAT are positively related to ROE and NPM reveals a very strong relationship with ROE.

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