A Study on Financial Performance of Indian Banking Industry

Volume 13 Issue 4 March - May 2019

Research Paper

A Study on Financial Performance of Indian Banking Industry

Vedala Naga Sailaja*, T. Umamaheswara Rao**

*-** Koneru Lakshmaiah Education Foundation, Andhra Pradesh, India.

Sailaja, V. N., & Rao, T. U. (2019). A Study on Financial Performance of Indian Banking Industry. i-manager's Journal on Management, 13(4), 56-63. https://doi.org/10.26634/jmgt.13.4.15037

Abstract

Banks play a crucial role in the economic prosperity of every nation. As per RBI guidelines, they exercise control over the supply of money in circulation. Banks act as financial intermediaries, which accept deposits and channelize the same to lending activities. Hence they can be considered as a vital source for helping the other industries and firms in money matters. The fate of other industries depends on the performance of banks. In any country if the banking industry is in turmoil, it affects the other sectors which in turn it will have a downbeat impact on the economy. Moreover, increased competition, new information technologies, and less government restrictions led the banks to face more problems (Chaudhary & Sharma, 2011). Hence it is essential to analyse how the banking sector performance is influenced by other factors. Hence this article presents the performance of banking industry in terms of growth in deposits, advances and total assets, and also the impact of total deposits on bank's profitability. This kind of study helps the management of banks to take corrective action and improves banking performance (Abara, 2015).