financial performance of digital banking sector in india

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International Journ Internat ISSN No INTERNA IT Organised By: V @ IJTSRD | Available Online @ www Financial Performa D ABSTRACT The banking sector is the one of financing general thinking which build financial performance in the modern growing financial performance lead better functions of an organization objective of this article is to know abou performance of Indian public sector random banks have been selected f Financially stabilized manner some of selected for the study to interp performances like loans and advances, shareholder capital, deposits, and net pro INTRODUCTION Banking sector plays a vital role in development of a nation; the Banking sy has a wide network of branches serving services to the people. Efficient Ba shows the development of nation econo proved many times, for example, the s period, while every country has gone though the Indian banking sector difficulties but due to efficient financ makes the financial system to maint financial condition. Indian Banking public sector-private sector and fo working in India with their respective c other, these banks differ significantly fr in terms of financial performance. The economic environment changing a world after the global financial crisis, structure in globally has been also chang down. Banking sector is also affected Banking sector is the main componen activities therefore measuring the financial soundness of banking institutio nal of Trend in Scientific Research and De tional Open Access Journal | www.ijtsr o: 2456 - 6470 | Conference Issue – ICDE ATIONAL CONFERENCE ON DIGITAL ECON TS IMPACT ON BUSINESS AND INDUSTRY V. P. Institute of Management Studies & Re w.ijtsrd.com | Conference Issue: ICDEBI-2018 | ance of Digital Banking Sector M. Siddarth Department of Commerce, GUK important in ds much of the digital world, to improving n. The main ut the financial banks in the for the study. f the variables pret financial assets, equity ofit margin. the economic ystem of India g a number of anking system omically and it subprime crisis bankrupt even faced many cial strength it tain the good g sector have oreign sector competition to rom each other all around the , the financial ge due to slow by the crisis. nt of financial strength and on has become a major task. The functioning change upside down in Ind efficiency of banking system performance is determination evaluate as to the performance after crisis. Such information further route map, to understanding the efficiency India. Today Indian banking Sector i it‘s mainly focused on new innovations. Banks innovated provide effective quality and s and get high speed in less coverage of customers. In th been changed, there are a working in India, in which banks. Today all the banks st channels, like, Credit Cards Banking, Internet Banking, E- banking sector will be fifth lar in 2025 third largest banking s The main object of the stu Financial Performance of the Sector. For the analysis sec chosen to know the financial The financially stabilized variables have been selected f the financial performance lik assets, equity shareholder ca profit margin. evelopment (IJTSRD) rd.com EBI-2018 NOMY AND Y esearch, Sangli Oct 2018 Page: 264 r i n India g of banking sector has dia also. To check the in India, their financial n. So it is important to e of banks has improved can provide use full for policy maker about y of banking sector in is a flourishing Industry; Banking technological d to use digital tool to services to the customer s time with wide area e recent scenario it has around 340 banks are are public and private tarted with the different s, Debit Cards, Mobile -pay etc. In 2020 Indian rgest banking sector and sector in the world. udy is to compare the e Indian Public Banking condary data has been l performance of banks. manner some of the for the study to analyze ke loans and advances, apital, deposits, and net

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The banking sector is the one of important in financing general thinking which builds much of the financial performance in the modern digital world, growing financial performance lead to improving better functions of an organization. The main objective of this article is to know about the financial performance of Indian public sector banks in the random banks have been selected for the study. Financially stabilized manner some of the variables selected for the study to interpret financial performances like loans and advances, assets, equity shareholder capital, deposits, and net profit margin. M. Siddarth "Financial Performance of Digital Banking Sector in India" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Special Issue | International Conference on Digital Economy and its Impact on Business and Industry , October 2018, URL: https://www.ijtsrd.com/papers/ijtsrd18719.pdf Paper URL: http://www.ijtsrd.com/management/marketing-management/18719/financial-performance-of-digital-banking-sector-in-india/m-siddarth

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Page 1: Financial Performance of Digital Banking Sector in India

International Journal of Trend in International Open Access Journal

ISSN No: 2456 INTERNATIONAL CON

ITS IMPACT ON BUSINESS AND Organised By: V. P. Institute of Management Studies & Research, Sangli

@ IJTSRD | Available Online @ www.ijtsrd.com

Financial Performance of

Department

ABSTRACT The banking sector is the one of important in financing general thinking which builds much of the financial performance in the modern digital world, growing financial performance lead to improving better functions of an organization. The main objective of this article is to know about the financial performance of Indian public sector banks in the random banks have been selected for the study. Financially stabilized manner some of the variables selected for the study to interpret financial performances like loans and advances, assets, equity shareholder capital, deposits, and net profit margin. INTRODUCTION Banking sector plays a vital role in the economic development of a nation; the Banking system of India has a wide network of branches serving a number of services to the people. Efficient Banking system shows the development of nation economically and it proved many times, for example, the subprime crisis period, while every country has gone bankrupt even though the Indian banking sector faced many difficulties but due to efficient financial strength it makes the financial system to maintain the good financial condition. Indian Banking sector have public sector-private sector and foreign sector working in India with their respective competition to other, these banks differ significantly from each other in terms of financial performance. The economic environment changing allworld after the global financial crisis,structure in globally has been also change due to slow down. Banking sector is also affected by the crisis. Banking sector is the main component of financial activities therefore measuring the strength and financial soundness of banking institution has bec

International Journal of Trend in Scientific Research and Development (IJTSRD)International Open Access Journal | www.ijtsrd.com

ISSN No: 2456 - 6470 | Conference Issue – ICDEBIINTERNATIONAL CONFERENCE ON DIGITAL ECONOMY AND

TS IMPACT ON BUSINESS AND INDUSTRYOrganised By: V. P. Institute of Management Studies & Research, Sangli

www.ijtsrd.com | Conference Issue: ICDEBI-2018 |

Financial Performance of Digital Banking Sector i

M. Siddarth Department of Commerce, GUK

banking sector is the one of important in financing general thinking which builds much of the financial performance in the modern digital world, growing financial performance lead to improving better functions of an organization. The main

s article is to know about the financial performance of Indian public sector banks in the random banks have been selected for the study. Financially stabilized manner some of the variables selected for the study to interpret financial

ns and advances, assets, equity shareholder capital, deposits, and net profit margin.

Banking sector plays a vital role in the economic the Banking system of India

has a wide network of branches serving a number of services to the people. Efficient Banking system shows the development of nation economically and it proved many times, for example, the subprime crisis

ntry has gone bankrupt even though the Indian banking sector faced many difficulties but due to efficient financial strength it makes the financial system to maintain the good financial condition. Indian Banking sector have

d foreign sector working in India with their respective competition to other, these banks differ significantly from each other

changing all around the ter the global financial crisis, the financial

structure in globally has been also change due to slow down. Banking sector is also affected by the crisis. Banking sector is the main component of financial activities therefore measuring the strength and financial soundness of banking institution has become

a major task. The functioning of banking sector has change upside down in India also. To check the efficiency of banking system in India, their financial performance is determination. So it is important to evaluate as to the performance of banks has after crisis. Such information can provide use full for further route map, to policy maker about understanding the efficiency of banking sector in India. Today Indian banking Sector is a flourishing Industry; it‘s mainly focused on new Banking teinnovations. Banks innovated to use digital tool to provide effective quality and services to the customer and get high speed in less time with wide area coverage of customers. In the recent scenario it has been changed, there are around 340 baworking in India, in which are public and private banks. Today all the banks started with the different channels, like, Credit Cards, Debit Cards, Mobile Banking, Internet Banking, E-banking sector will be fifth largest bankin 2025 third largest banking sector in the world. The main object of the study is to compare the Financial Performance of the Indian Public Banking Sector. For the analysis secondary data has been chosen to know the financial performance oThe financially stabilized manner some of the variables have been selected for the study to analyze the financial performance like loans and advances, assets, equity shareholder capital, deposits, and net profit margin.

Research and Development (IJTSRD) www.ijtsrd.com

ICDEBI-2018

FERENCE ON DIGITAL ECONOMY AND INDUSTRY

Organised By: V. P. Institute of Management Studies & Research, Sangli

| Oct 2018 Page: 264

Digital Banking Sector in India

a major task. The functioning of banking sector has change upside down in India also. To check the efficiency of banking system in India, their financial performance is determination. So it is important to evaluate as to the performance of banks has improved after crisis. Such information can provide use full for further route map, to policy maker about understanding the efficiency of banking sector in

Today Indian banking Sector is a flourishing Industry; it‘s mainly focused on new Banking technological innovations. Banks innovated to use digital tool to provide effective quality and services to the customer and get high speed in less time with wide area coverage of customers. In the recent scenario it has been changed, there are around 340 banks are working in India, in which are public and private banks. Today all the banks started with the different channels, like, Credit Cards, Debit Cards, Mobile

-pay etc. In 2020 Indian banking sector will be fifth largest banking sector and

2025 third largest banking sector in the world.

The main object of the study is to compare the Financial Performance of the Indian Public Banking Sector. For the analysis secondary data has been chosen to know the financial performance of banks. The financially stabilized manner some of the variables have been selected for the study to analyze the financial performance like loans and advances, assets, equity shareholder capital, deposits, and net

Page 2: Financial Performance of Digital Banking Sector in India

International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456

@ IJTSRD | Available Online @ www.ijtsrd.com

ANALYSIS AND INTERPRETATIONASSETS

2017 2016 2015 2014Canara bank

388518

336545

54800.56

491921.85

Union bank of India

319383

316393

381615.93

535780.90

The above table refers to the Total Assets rate of the selected banks for a time period. Here also the Canara bank was in first so it represents the good opinion among the other selected banks. Assets represent the total reserves of the banks. So here the that all banks have improved in reserves too.

ADVANCES 2017 2016 2015 2014

Canara bank

31021

26801

330035.51

301067.48

Union bank of India

319383

277725

255654.57

229104.43

The above table refers to the Advancesselected banks for the time period. In Bank, the Advances represent the assets to the bank because the customers used to pay interest to the bank so it represents the income to banks. All the selected banks are improved all the selected year. Comparing with the banks Union bank performed better to compare with other banks.

DEPOSIT

2017 2016 2015 Canara bank 5038

88 510327

473840

Union bank of India

378392

342720

316869

The above table refers to the Deposits rate of the selected banks for the time period. In Bank, the deposits represent the liabilities to the bank. All the selected banks are improved all the selected year. Comparing with the banks Canara banks performed better to compare with other banks. EQUITY SHAREHOLDERS CAPITAL: Equity share capital represents issuing the shares to the public or third person to improve the cash for the company or banks for that bank will pay the dividend to the share holders. The amount of share capital changes time to time to improvise the share capital.

International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456

www.ijtsrd.com | Conference Issue: ICDEBI-2018 |

RETATION

2014 2013 491921.85

412342.61

535780.90

311860.81

The above table refers to the Total Assets rate of the selected banks for a time period. Here also the Canara bank was in first so it represents the good opinion among the other selected banks. Assets represent the total reserves of the banks. So here the reserves mean that all banks have improved in reserves too.

2014 2013 301067.48

242176.62

229104.43

208102.19

The above table refers to the Advances rate of the selected banks for the time period. In Bank, the Advances represent the assets to the bank because the customers used to pay interest to the bank so it represents the income to banks. All the selected banks

Comparing with the banks Union bank performed better to compare

2014 2013 420722

355855

297675

263761

The above table refers to the Deposits rate of the selected banks for the time period. In Bank, the deposits represent the liabilities to the bank. All the selected banks are improved all the selected year. Comparing with the banks Canara banks performed

EQUITY SHAREHOLDERS CAPITAL: Equity share capital represents issuing the shares to the public or third person to improve the cash for the

will pay the dividend ount of share capital

changes time to time to improvise the share capital.

RETURN ON EQUITY: ROE is the amount of net income returned as a percentage of shareholders' equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. RETURN ON ASSET: Return on assets indicates that the profitable factors of the banks which related to total assets. The higher return, more efficient management is in utilizing its asset base. And ratio is calculated by comparing net income to average total asset, and is expressed as a percentage. NET PROFIT MARGIN: It is the revenue left after all expenses deducted from sales, the measurement shows the amount of profit that a business can extract from its total sales. The net sales part of the equation issales minus all sales deductions, such asallowances. CONCLUSION The selected variables provide different meaning like assets and liabilities of the banks. The results prove that in there of deposits, loans and assets the Canara bank performs well during the selected period of time. Both deposits and loans are in the better way compared to other banks. NPM has been reduced for all the banks. To conclude the study some factors in total they have a good volume of exposure but the ratios are coming down so the banks should concentrate on every possible move for better growth. In the perspective of this domestic and international development, the banking sector has to chart out a perfect path for the development in its own. REFERENCES 1. Nathwani, Nirmal (2004)

Performance of Banking Sector of India. Ph.D. thesis, Saurashtra University.

2. Anurag. B. Singh; Ms. Priyanka TandonStudy Of Financial Performance: A Comparative Analysis Of SBI And ICICI Bank, “International Journal of Marketing, Financial Services & Management Research” Vol.1 Issue 11, November 2012, ISSN 2277 3622.

3. Premalata KCTBS, ComparisonPerformance in Banking Sector Evidence from Indian Public Sector Banks. IJRTD Volume 3.

International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470 | IF: 4.101

| Oct 2018 Page: 265

ROE is the amount of net income returned as a percentage of shareholders' equity. Return on equity measures a corporation's profitability by revealing

profit a company generates with the money

Return on assets indicates that the profitable factors of the banks which related to total assets. The higher return, more efficient management is in utilizing its asset base. And ratio is calculated by comparing net income to average total asset, and is expressed as a

is the revenue left after all expenses deducted measurement shows the amount of

business can extract from its total sales. part of the equation is gross

les deductions, such as sales

The selected variables provide different meaning like assets and liabilities of the banks. The results prove

ere of deposits, loans and assets the Canara bank performs well during the selected period of time. Both deposits and loans are in the better way compared to other banks. NPM has been reduced for all the banks. To conclude the study some factors in

hey have a good volume of exposure but the ratios are coming down so the banks should concentrate on every possible move for better growth. In the perspective of this domestic and international development, the banking sector has to chart out a

h for the development in its own.

Nathwani, Nirmal (2004) the Study of Financial Performance of Banking Sector of India. Ph.D. thesis, Saurashtra University.

Anurag. B. Singh; Ms. Priyanka Tandon (2012), A Study Of Financial Performance: A Comparative

And ICICI Bank, “International Journal of Marketing, Financial Services & Management Research” Vol.1 Issue 11, November 2012, ISSN 2277 3622.

, Comparison of Financial Performance in Banking Sector Evidence from Indian Public Sector Banks. IJRTD Volume 3.

Page 3: Financial Performance of Digital Banking Sector in India

International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456

@ IJTSRD | Available Online @ www.ijtsrd.com

4. Medhat (2006), Comparison of Financial Performance in the Banking Sector: Some Evidence from Omani Commercial Banks, “International Research Journal of Finance and Economics” ISSN 1450-2887 Issue 3 (2006).

5. M. Kavitha (2012), Financial Performance Of Selected Public Sector Banks In India, “International Journal of Multidisciplinary Research” Vol.2 Issue 1, January 2012, ISSN 2231 5780.

International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456

www.ijtsrd.com | Conference Issue: ICDEBI-2018 |

Medhat (2006), Comparison of Financial Performance in the Banking Sector: Some Evidence from Omani Commercial Banks, “International Research Journal of Finance and

2887 Issue 3 (2006).

M. Kavitha (2012), Financial Performance Of Selected Public Sector Banks In India, “International Journal of Multidisciplinary Research” Vol.2 Issue 1, January 2012, ISSN

6. Sanjeev Kumar Srivastav (2013), “Ratio Analysis Of Select Foreign And New Private Sector Banks Operating In India”, “The International Journal Of Management” ISSN 2277-5846 Vol 2 Issue 4 (October 2013), pp 2834.

7. Siva Reddy Kalluru (2009), “Ownership Structure, Performance, aCommercial Banks”, “The IUP Journal of Applied Finance”, Vol. 15, No. 8, 2009 pp 31

International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470 | IF: 4.101

| Oct 2018 Page: 266

Sanjeev Kumar Srivastav (2013), “A Financial Ratio Analysis Of Select Foreign And New Private Sector Banks Operating In India”, “The International Journal Of Management” ISSN

5846 Vol 2 Issue 4 (October 2013), pp 28-

Siva Reddy Kalluru (2009), “Ownership Structure, Performance, and Risk in Indian Commercial Banks”, “The IUP Journal of Applied Finance”, Vol. 15, No. 8, 2009 pp 31-45.