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Determinants of Profitability of Banking Sector in India

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  • Majid Karimzadeh
  • S. Jawed Akhtar
  • Behzad Karimzadeh

Abstract

India currently is one of the fastest growing economies in the world. One sector of Indian economy that has played a critical role in transforming the Indian economy has been its banking sector. But this sector of Indian economy has also gone through a major transition that is still in progress. Many events and policies have contributed in this transition. One pivotal variable has been the growing profitability of this sector in the recent years. But profitability in banking sector is affected by numerous factors. These factors can be internal or external. In this research we shall try to examine the most important factors that may stem from both internal and external factors, which affect profitability of Indian banking sector. For this study a balanced panel data set is used that is drawn from Indian banking industry. The data is compiled for the purpose of investigating the nature of the relationship between the profitability and the factors that determine profitability of banks in India. The results of the study clearly demonstrate a close correlation between both internal and external factors and the level of profitability of banks in India. Copyright CEEUN 2013

Suggested Citation

  • Majid Karimzadeh & S. Jawed Akhtar & Behzad Karimzadeh, 2013. "Determinants of Profitability of Banking Sector in India," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 20(2), pages 211-219, October.
    • Handle: RePEc:spr:trstrv:v:20:y:2013:i:2:p:211-219
    DOI: 10.1007/s11300-013-0284-4
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    2. P. Thich D. & П. Тхих Д., 2017. "Детерминанты доходности банков: эмпирические данные из Вьетнама // Determinants of Banks’ Profitability: Empirical Evidence from Vietnam," Review of Business and Economics Studies // Review of Business and Economics Studies, Финансовый Университет // Financial University, vol. 5(4), pages 37-45.
    3. BOITAN, Iustina Alina, 2015. "Determinants Of Sustainable Banks’ Profitability. Evidence From Eu Countries," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 19(1), pages 21-39.
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    6. Shawuya Jigeer & Ekaterina Koroleva, 2023. "The Determinants of Profitability in the City Commercial Banks: Case of China," Risks, MDPI, vol. 11(3), pages 1-21, March.

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