• D. Devipriya

A firm’s capital structure is the combination equity and debt capital. Apart from these capitals, there are other ways to finance a company like vendor financing at the time credit purchase, which helps the firm to increase the return on equity as the firms sells the asset before it pays to vendor. The paper aims to study the relationship and the impact of capital structure namely Debt to Equity, Long term debt to Total asset and short term debt to Total asset on the financial performance of selected banks in India. Earnings per Share, Return on Assets and Return on Equity are taken as financial performance variables. The study utilizes the secondary data obtained from annual reports and other web sources for the period of three financial years (2014 to 2018). The generated data were analyzed using Pearson’s correlation coefficient and ordinary least square regression using Excel. From the analysis, the study results that there is a significant relationship and dependence on ROE and Long and Short term debt to Total Assets, whereas there is no significant relationship between ROE and Debt upon Equity, ROA and EPS on capital structure in the selected banks. As scope of study is limited to selected banks, a further research could be measured by analyzing the reports of more banks for a period of time.

Capital structure, Financial Performance and Debt to equity.

"A Study on Capital Structure and Financial Performance of Listed Banks in India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 12, page no.165-171, December-2018, Available :http://www.jetir.org/papers/JETIR1812424.pdf

"A Study on Capital Structure and Financial Performance of Listed Banks in India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 12, page no. pp165-171, December-2018, Available at : http://www.jetir.org/papers/JETIR1812424.pdf