UGC Approved Journal no 63975

ISSN: 2349-5162 | ESTD Year : 2014
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Published in:

Volume 6 Issue 6
June-2019
eISSN: 2349-5162

UGC and ISSN approved 7.95 impact factor UGC Approved Journal no 63975

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Published Paper ID:
JETIRCK06005


Registration ID:
204629

Page Number

38-44

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Title

“IMPACT OF INFLATION ON BANK’S PROFITABILITY” A STUDY ON SELECT BANKS PROFITABILITY

Abstract

The banking sector of India consists of 26 public sector banks, 20 private banks and 43 foreign banks. The banking sector is merely contributing about 7.7% to India’s GDP. Banking sector has generated employment in the economy for about 1.5 million people. The study focuses on the impact of Inflation on Banks profitability. To evaluate the bank’s profitability some of the determinants like Return on assets, Return on Equity and Net profit is considered. Wholesale price index average has been taken to evaluate the Impact of inflation on banks profitability. Also, there are many external factors that impacts profitability such as GDP, asset management, NPAs, capital adequacy, liquidity ratio. For the study five Pubic sector banks has been considered i.e. State Bank of India, IDBI Bank, Allahabad Bank, Canara Bank, Punjab National Bank for the year 2014 to 2018. From the study it can be concluded that there is negative correlation between inflation and banks profitability which means that if one variable increases other variable decreases. When inflation raises interest rates also raises. Increase in interest rates provide greater opportunity for banks to increase their profits. Meanwhile their cost of funds also increases which can reduce profits. From the study, it can be determined that H0 is accepted and alterative is rejected which means Inflation has no effect on Return on Assets(ROA), Return on Equity (ROE) and Net profit of select public sector banks. Inflation does not affect the profitability of banks. There are several other internal as well as external factors that may affect the profitability of bank. Hence there is no significant association between Inflation and Banks profitability of select public sector banks in India.

Key Words

Inflation, Wholesale price index, profitability ratios, public sector banks.

Cite This Article

"“IMPACT OF INFLATION ON BANK’S PROFITABILITY” A STUDY ON SELECT BANKS PROFITABILITY", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.38-44, June-2019, Available :http://www.jetir.org/papers/JETIRCK06005.pdf

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2349-5162 | Impact Factor 7.95 Calculate by Google Scholar

An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 7.95 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator

Cite This Article

"“IMPACT OF INFLATION ON BANK’S PROFITABILITY” A STUDY ON SELECT BANKS PROFITABILITY", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp38-44, June-2019, Available at : http://www.jetir.org/papers/JETIRCK06005.pdf

Publication Details

Published Paper ID: JETIRCK06005
Registration ID: 204629
Published In: Volume 6 | Issue 6 | Year June-2019
DOI (Digital Object Identifier):
Page No: 38-44
Country: -, -, - .
Area: Engineering
ISSN Number: 2349-5162


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