Abstract
Industrialization is necessary for the rapid economic
growth which implies a long term rise in per capita of
nation. It requires huge investment which is possible if
saving is sound and investor are willing to take common
market risk. Large chunk of permanent investment of a
company depend upon equity shares and its intrinsic value
depends on overall economic factor. The profitability of the
company, the growth rate and the risk exposure has a direct
impact on the price of the share. These factors further rely
on other factors like economic environment in which
company operate, the industry they belong to, and finally it
overall performance. The liberalization of an Indian
economy explored the market potential and due to which
Indian banking sector has been witnessing tremendous
changes in terms of new product and services and overall
stiff competition from domestic and global private sector
banking players. The new highbred IPO’s that have been
taking place in banking sector are amazing. In the light of
these ever-growing developments a careful analysis of the
profitability of Indian banking sector is inevitable. The
presents study attempts to analyze the profitability of five
major public sector banks in India: SBI, PNB, BOI, BOI, and
Canara Bank. The variable taken for the study are Earning
Per Share (EPS), Operating Profit Margin (OPM), Net Profit
Margin (NPM), Debt Equity Ratio (DER), Return on Equity
(ROE), Price Earning Ratio (PER) and Return on Assets
(ROA). This study brings out the competitiveness
effectiveness of five major banks.
Keywords: SBI, PNB, BOI, BOB,CB, EPS, OPM, NPM, DER,
ROE, PER ROA, IPO, RBI, SCBs, PSBs, NPAs, ATMs, NSE,
CAGR,
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