ANALYSISOFGROWTHANDPROFITABILITYPERFORMANCEOFSELECTED NATIONALISEDBANKSININDIA

Abstract

The Indian banking sector is vital for
fostering
economic development, with
nationalised
banks
making significant
contributions to financial stability and the
expansion of credit. This research examines
the growth and profitability performance of
two major nationalized banks, Punjab
National Bank (PNB) and Bank of Baroda
(BOB), over the past ten years. Growth
performance is evaluated based on variables
like deposits, advances, and total assets.
Profitability, on the other hand, is assessed
using key financial ratios such as Return on
Assets (ROA), Return on Equity (ROE), Net
Interest Margin (NIM), and Cost-to-Income
Ratio. The research investigates patterns and
relationships in the financial performance of
the chosen banks using statistical methods
such as correlation, ANOVA, ratio analysis,
and trend analysis. The results emphasize how
the changes in interest rates, operational
efficiency, and capital adequacy influence
growth and profitability outcomes. The
outcomes of the research contribute to a
deeper understanding of the financial
dynamics of nationalized banks in India and
offer insights for policymakers, regulators,
and stakeholders seeking to enhance banking
sector performance