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Analysis of Financial Health of Banking Industry Through DuPont Model

Global Journal of Research in Management

Volume 2 Issue 2

Published: 2012
Author(s) Name: Butalal C. Ajmera | Author(s) Affiliation: Assistant Professor, Dept. of Business Admn, Maharaja KrishanKumarsinhji, Bhavnagar University
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Abstract

This paper is concerned with the Analysis of Financial Health of Banking Industry through DuPont model. It is secondary data based study covering period of 5 years from 2006-07 to 2010-11. In this paper an attempt has been made to analysis the financial performance through different ratios of DuPont model. ANOVA test has also been used to test the significance relationship among different ratios of selected banks. From analysis though DuPont model it is concluded that The PBIDT/Sales (%) ratio is highest of SBI, Sales/ net asset ratio is highest of Corporation banks, PBDIT/Net asset ratio is highest in SBI,Dena Bank, and Corporation Bank. PAT/PBDIT % ratio is highest in Dena bank, Net asset/ Net worth ratio is highest in Bank of Baroda and ROE is highest in SBI.

Keywords: Financial performance, DuPont Model, ANOVA test, Bank Industry

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