• Eissa A. Al-Homaidi
• Anwar Ahmad
• Amgad S. D. Khaled
• Moatasem M. Qaid

This paper aims to examine the impact of external factors on listed commercial banks’ performance in India. This study used a panel data of 37 listed commercial banks for the period from 2008 to 2017. External factors are measured by gross domestic product (GDP), inflation rate (IFR), interest rate (INTRT), and exchange rate (EXCH), whereas listed commercial banks’ performance is measured by return on assets (ROA) and return on equity (ROE). The results of the study revealed that EXCH rate and IFR rate have a significant impact on listed commercial banks’ performance measured by ROA, whereas GDP and INTRT rate have an insignificant influence on listed commercial banks’ performance calculated by ROA. However, all external factors as (GDP, EXCH, and INTRT) have a negative effect on listed commercial banks’ performance in India, except IFR rate has a positive impact on banks’ performance measured by (ROA and ROE). The study adds value to the knowledge in the academic financial performance by providing new empirical evidence of the relationship between external factors and financial performance in annual reports of Indian commercial banks.

External factors, financial performance, listed commercial banks, India

"External indicators and banks’ performance: An empirical examination of commercial banks listed on Mumbai Stock Exchange (MSE)", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.368-371, June-2019, Available :http://www.jetir.org/papers/JETIR1907T24.pdf

"External indicators and banks’ performance: An empirical examination of commercial banks listed on Mumbai Stock Exchange (MSE)", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp368-371, June-2019, Available at : http://www.jetir.org/papers/JETIR1907T24.pdf