LITERATURE REVIEW OF FINANCIAL ANALYSIS OF ICICI BANK

Therefore, the financial performance of public and private bank groups regarding these ratios is different during the study period. The paper is not in the journal. They are able to meet their short term obligations with their current assets.

An empirical study of financial performance of icici bank | sunil anjana –

Besides, the study literaturs immense help for the management and staff of commercial banks who will gain insight into how their institutions can effectively manage their literature review of financial analysis of icici bank ratios by appropriate practices to increase their profits. Profitability ratios of selected commercial banks. It can be suggested that the liquidity and solvency, represented by the quick ratio and interest coverage ratio respectively, plays a significant role in determining the profitability of the selected public sector banks.

The private banks have relatively better interest coverage ratio than the public banks, despite the fact that their ratios lie below one.

Management of liquidity and solvency ratios are vital for the commercial banks as it associated with their performances and reputations, especially with profitability ratios.

All the public banks recorded a decreasing trend during the sample period. It is clear from the existing literature that the studies pertaining to the financial performance of commercial banks across the globe, especially in Indian context, wnalysis performed based on the ratio analysis and CAMEL ranking method.

Besides, the interest coverage ratio ICR is found to be positive and statistically significant at one percent level, implying that one unit change in interest coverage ratio will leads to 2. Turnover analyais of selected commercial banks. Banks have the principal role of converting liquid deposit liabilities to illiquid assets such as loans, which makes them literature review of financial analysis of icici bank vulnerable to liquidity risk. Hence the null hypothesis of no mean differences in the respective financial ratios of selected private and public sector banks is rejected and alternative hypothesis is accepted.

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International Journal of Research in Commerce and Management, finzncial, To examine the financial performance of selected Indian commercial banks, the financial ratios of respective banks were used, viz. In this case, although it retains some of its earnings, the action does not signal the bank is in weak financial health.

From Table 4it is clear that the majority of the public banks show negative net profit margin and they are not able to convert their sales into profits.

TEL Most popular papers. Indian Journal of Finance, 7, Among the public sector banks, majority of them are having consistent current ratio during the study period. Most of the selected literature review of financial analysis of icici bank sector banks have registered a significant improvement in their asset turnover ratio and profit margins, but the selected private sector banks continue to have still better profitability, liquidity, solvency and literautre capital adequacy ratios.

Besides there have been studies which proved that there has been significant difference in the performance of public and private sector banks in India [18] [20] [22] [23].

The present study attempts to evaluate the financial performance of selected Indian commercial banks using the financial ratios, and also examines the impact of liquidity, solvency and efficiency on the profitability of the selected Indian commercial banks by employing the panel data estimations, viz.

Healthy financial performance has become literature review of financial analysis of icici bank great challenge o the modern times as banks are characterised by the technological advancements, high competition for consumer deposits and altering monetary policy that augments analydis liquidity, solvency and the profitability of the banks.

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List of Indian commercial banks selected for the study. A Financial Soundness Indicator for Banks. Considering data availability, the study comprised 16 commercial banks, 11 representing public sector and 5 from private sector. The list of Indian commercial banks selected for the study is shown in Table 1. If the banks have poor liquidity conditions, the regulators will penalize them and literature review of financial analysis of icici bank analtsis becomes imperative for the banks to keep a sound liquidity arrangement.

References [ 1 ] Hirigoyen, G. Their presence assumes that differences across the considered banks of respective banking industry groups appear by analyysis of differences in the constant term. The fixed effect model takes into the firm specific effect and the random effect model consider the time effect.

Analysis of Financial Performance of Selected Commercial Banks in India

EPS can be negative if the bank is losing money. The current ratios of private sector banks are found to be relatively better than the public sector banks. Besides, the study employed the panel data estimations, viz.