Study on Banking Sector Reforms on Profitability of Public Sector Bank

Exploring the impact of banking sector reforms on the profitability of Indian public sector banks

Abstract

The banking industry is a vital component of the economy. It is in charge of overseeing and regulating the smooth operation of the Indian economy. The banking sector changes and actions aim to improve India's banking system's performance and competitiveness. They want to boost production and prosperity. They also ensure capital sector stability and adequacy. Let's read more about the most critical banking reforms. The research Profitability of Public Sectors Bank in India A Study of Determinants look at the variables that have affected the financial success of 26 Indian public sector banks after the global financial crisis. Based on the CAMELS system, a Random Effect Model was run on balanced panel data from 2012 to 2017 to assess the influence of macroeconomic and bank-specific variables. Complete Investments to Total Assets, Operating Profit to Total Assets, and Provisions on Loans are the bank explicit components that influence the productivity of Public Sector Banks in India, while the effect of macroeconomic variables on the banks benefit is irrelevant.