Top PDF Nigerian Banks' Efficiency Performance- A post 2004 Banking Reforms Evaluation

Nigerian Banks' Efficiency Performance- A post 2004 Banking Reforms Evaluation

Nigerian Banks' Efficiency Performance- A post 2004 Banking Reforms Evaluation

number of applications to real – world problems. The technique was first applied to the banking industry by Sherman and Gold in1985, who used it to explore some operating aspects of bank branches. By explicitly considering the mix of resources used and services provided by individual branches they succeeded not only in identifying inefficient branches but also in locating specific areas of inefficiency at each branch. Also Favero and Papi (1995) used Data Envelopment Analysis (DEA) on a cross section of 174 Italian banks in 1991 to measure the technical and scale efficiencies of the Italian Banks. For the Nigerian banks, their efficiency need to be measured giventhe several reforms that have taken place in the industry in order to determine whether the reforms have been worthwhile or not.Of particular reference were, the 2001 universal banking reform and the 2004 banking consolidation which require banks to increase their capital from the minimum of two billion naira to twenty-five billion naira.Presently in the year 2011 universal banking has been stopped and the banks have now be classified into groups depending on the type of banking business the bank wants to perform with different capital requirement. We have regional bank with capital of ten billion naira, national bank with capital of twenty-five billion naira, international bank with capital of fifty billion naira and merchant bank‘s capital at fifteen billion naira.
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The Sources of Efficiency in the Nigerian Banking Industry

The Sources of Efficiency in the Nigerian Banking Industry

The paper employed a two-stage Data Envelopment Analysis (DEA) approach to examine the sources of technical efficiency in the Nigerian banking sub-sector. Using a cross section of commercial and merchant banks, the study showed that the Nigerian banking industry was not efficient both in the pre-and-post-liberalization era. The study further revealed that market share was the strongest determinant of technical efficiency in the Nigerian banking Industry. Thus, appropriate macroeconomic policy, institutional development and structural reforms must accompany financial liberalization to create the stable environment required for it to succeed. Hence, the present bank consolidation and reforms by the Central Bank of Nigeria, which started with Soludo and continued with Sanusi, are considered necessary, especially in the areas of e banking and reorganizing the management of banks.
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Corporate governance and performance of nigerian deposit money banks in post consolidation era

Corporate governance and performance of nigerian deposit money banks in post consolidation era

problem in the banking sector in Nigeria was “weak corporate governance, evidenced by high turnover in the Board and management staff, inaccurate reporting and non-compliance with regulatory requirements, falling ethics and de-marketing of other banks in the industry” (Soludo, 2004). Historical evidences show that as far back as the 1990s, weak corporate governance accounted for the collapse of many banks in Nigeria. According to the Nigeria Deposit Insurance Corporation, NDIC (1994) insider loans accounted for 65 percent of the total loans of the four banks liquidated in Nigeria in 1995, virtually all of which was unrecoverable (see Appendix VI). Brownbridge (1998) commenting on the 1995 distress of DMBs in Nigeria stated that most, if not all, of the banks that failed in Nigeria failed due to non-performing loans. Arrears affecting more than half the loan portfolio were typical of the failed banks. Many of the bad debts were attributable to moral hazard: the adverse incentives on bank owners to adopt imprudent lending strategies, in particular insider lending and lending at high interest rates to borrowers in the most risky segments of the credit markets contrary to the interests of the bank's creditors (mainly depositors or the government if it explicitly or implicitly insures deposits), which, if unsuccessful, would jeopardize the solvency of the bank.
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The Technical Efficiency of Nigerian Banks

The Technical Efficiency of Nigerian Banks

This study provides an insight into the technical efficiency of Nigerian banks. The Data Envelopment Analysis (DEA) approach was employed to derive the efficiency scores of the various banks. A total of 67 banks, made up of commercial and merchant banks were used for the periods 1984/1985, 1994/1995, 1999/2000, and 2003/2004. This enabled us to investigate the efficiency of these banks pre- and- post liberalization. However, the periods were before the consolidation exercise of the Central Bank of Nigeria (CBN) headed by both Soludo and Sanusi. This enabled us compare the results with the outcome of those consolidation exercises. The result shows that on the average Nigerian banks were not efficient within the periods of study. However, it showed that liberalization improved the efficiency of banks in Nigeria, though the improvement did not last as some of the banks started sliding in efficiency with continued liberalization. This tends to support the consolidation exercises which were actions taken along with the liberalization exercise to save the banks. Furthermore, the study shows that some of the banks that collapsed during the 2006 consolidation exercise had their efficiencies continuously on the decline. Same with some of the banks that were declared problematic by Sanusi. It also showed that privately owned banks were found to be more efficient than publicly owned banks within the period of study. This suggests that continued privatization should be pursued in the banking industry.
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Banking sector reforms and the Nigerian economy: performance, pitfalls and future policy options

Banking sector reforms and the Nigerian economy: performance, pitfalls and future policy options

This paper reviews the perspective of banking sector reforms since 1970 to date. It notes four eras of banking sector reforms in Nigeria, viz.: Pre-SAP (1970-85), the Post-SAP (1986-93), the Reforms Lethargy (1993- 1998), Pre-Soludo (1999-2004) and Post-Soludo (2005-2006). Using both descriptive statistics and econometric methods, three sets of hypothesis were tested: firstly that each phase of reforms culminated in improved incentives; secondly that policy reforms which results in increased capitalization, exchange rate devaluation; interest rate restructuring and abolition of credit rationing may have had positive effects on real sector credit and thirdly that implicit incentives which accompany the reforms had salutary macroeconomic effects. The empirical results confirm that eras of pursuits of market reforms were characterized by improved incentives. However, these did not translate to increased credit purvey to the real sector. Also while growth was stifled in eras of control, the reforms era was associated with rise in inflationary pressures. Among the pitfalls of reforms identified by the study are faulty premise and wrong sequencing of reforms and a host of conflicts emanating from adopted theoretical models for reforms and above all, frequent reversals and/or non-sustainability of reforms. In concluding, the study notes the need to bolster reforms through the deliberate adoption of policies that would ensure convergence of domestic and international rates of return on financial markets investments.
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Intermediation Efficiency and Profitability Performance: Quantitative Evidence from Nigerian Banking Sector

Intermediation Efficiency and Profitability Performance: Quantitative Evidence from Nigerian Banking Sector

The first explanatory variable of interest in the profitability model is bank capital. As expected, it coefficient turned out positive and statistically significant. The result was similar to the outcome of similar studies conducted for European banking industry by Molyneux and Thornton (1992) and Demirgue-kunt and Huizinga (2000). This suggests that the sound capital position of Nigeria banks, especially post-consolidation period enabled them to pursue business opportunities more effectively and affords them more time and flexibility to deal with problems arising from unexpected losses, invariably leading to increased profitability. The results also show that concentration positively affects bank profitability. The insignificance of concentration variable failed to provide support for the relevance of SCP hypothesis within the Nigerian banking industry. Asset quality was found to have a significant negative impact on banks’ return on assets. As discussed in the literature, though banks tend to be more profitable when they are able to undertake more lending activities, but arising from the quality of credit or lending portfolios, a high level of provisions against total loans in fact depresses banks’ return on assets significantly. With respect to the influence of the wider operating environment on banksperformance, the results showed that among the macroeconomic determinants, only inflation rate has an impact on banks’ return on assets. Expected inflation has a negative significance on profitability probably due to the ability of management to predict future inflation and make appropriate adjustments to achieve higher profit. Movement in overall fortune of the economy turned out to be unimportant in determining banks profitability in Nigeria.
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EVALUATION OF THE DETERMINANTS OF OPERATIONAL EFFICIENCY IN NIGERIAN DEPOSIT MONEY BANKS

EVALUATION OF THE DETERMINANTS OF OPERATIONAL EFFICIENCY IN NIGERIAN DEPOSIT MONEY BANKS

Licensed under Creative Common Page 4 determinant of technical efficiency as revealed by the study are fixed asset, deposit and deposit to total liabilities while the cash deposit ratio is not insignificant. In a study on the determinants of operating efficiency in Egypt banking sector, Armer, Mustapha and Eldomiaty (2011) found asset quality, capital adequacy, credit risk and liquidity as the main determinants of efficiency in the highly competitive banks. Using non parametric approach of measuring efficiency by focusing on total factor productivity in the measurement of the determinant of efficiency in the central Asian banks between 2003-2006, Djahlilor and Piesse revealed that majority of the banking organization are efficient and that the inefficiency observed in some of the central Asian banks are traceable low capital adequacy, poor asset quality and low profitability. Employing Data Envelopment Analysis, it is evident that the main sources of efficiency in Nigeria banking sector is market size and the banking sector is not efficient in the pre and post liberalization period because of the distribution in the financial system. (Obafemi, Ayodele and Ebong 2013). There is a negative relationship between bank efficiency and profitability (Ismail, Rahim and Abdul Majid 2011; Amar et al 2011; Adewoye and Omoriegie 2013; Oke and Polodmine 2012). Islamic banking group are more efficient in resources allocation while commercial banks are technically efficient. Like in Nigeria, Abrahim et al (2011) identified size or scale of operation as an important determinant of bank efficiency in maylasian banking sector (see also Adewoye and Omoriege 2013). In Mexico, Garza- Garcia (2009) using Data Envelopment Analysis, concluded that loan intensity growth rate of GDP and foreign ownership are better predictors of bank efficiency while non interest
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Were the Nigerian Banking Reforms of 2005 A Success ... And for the Poor?

Were the Nigerian Banking Reforms of 2005 A Success ... And for the Poor?

A time-series data set is constructed from all banks and financial intermediaries operating in the period 1992 to 2008. Two measures of bank efficiency are used in the empirical analysis. Following Stulz (1999), Demirgüç-Kunt and Levine (1999), and Demirgüç-Kunt and Huizinga (2009), I conjecture that financial development and structure affect firm performance and, more particularly, bank performance. Bank efficiency also depends on overhead cost. One model uses bank efficiency measured by the ex ante interest margin, i.e., interest-rate spreads, or the difference in saving and lending rates. Another model uses bank efficiency measured by the ex post interest margin, i.e., net interest margins, or the ratio of net interest income to total assets, which accounts for the possibility that banks that charge high interest rates may experience high default rates. To distinguish the effect of cost, development, structure, and bank reform from general economic conditions, macroeconomic variables are included in estimation. Specifically, I estimate the basic regression
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Impact of Banking Sector Reforms On Stock Market Performance in Nigeria (2004-2018)

Impact of Banking Sector Reforms On Stock Market Performance in Nigeria (2004-2018)

Abstract: Central Bank of Nigeria (CBN) has over time structured out different kinds of banking sector reforms to boost commercial banks and its allies in the sector to adequately perform essentially their intermediation function. Therefore, this study critically examined banking sector reforms impact on stock market performance in Nigeria considered from 2004-2018; with particular interest to proxy banking sector reforms: as broad money supply, domestic credit to the private sector and interest rate spread. The variables employed in the study where tested using an ADF, Johansen co-integration and model stability test, while the error correction mechanism (ECM) was used to estimate the individual parameters and to validate the hypothesis outlined in the study. The empirical results of the study found a collective insignificant impact of banking sector reforms on stock market performance for the period under study. The study further reveals that, broad money supply as a reform proxy has a linear relationship with stock market performance. The study strongly recommends the need for Central Bank of Nigeria (CBN) and other monetary authorities to periodically review and sustain existing banking sector reforms in consonance with current challenges in the banking sector so as to boost performance in the Nigerian stock market.
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Evaluation of Nigerian ports post concession performance

Evaluation of Nigerian ports post concession performance

As the drift of cargo meant for Nigerian ports continued unabated to ports in neighbouring countries, the government came up with a more radical approach to public sector reform in Nigeria. The main thrust of the new approach is a shift from commercialisation to transfer of operational activities of State Owned Enterprises (SOEs), from the public to the private sector, through partial or outright privatisation. For the port industry, the primary goals of this reform were to increase competitiveness and efficiency of national ports. In order to achieve these goals, the government defended an increase of private participation in port management. Nigerian ports moved from a tool port model, where the public sector holds the infrastructure and superstructure, to a landlord port model (Kieran, 2005). In this model, the port authority retains the infrastructure ownership, but private operators provide the services through a licence or concession (Brooks, 2004). The operators are responsible for hiring workers and for investing in equipment and superstructure. The port authority is responsible for the construction and management of infrastructures associated with navigation, such as piers, dams and access channels (Marques & Fonseca, 2010). There are two principal reasons for the adoption of the landlord port model in Nigeria. The first one is related to the need for funding. The Nigerian Port Authority as a public entity was not able to finance the operations alone. The second one concerns the neo-liberal thinking that have characterised the governments in Nigeria since the inception of the present democratic rule (left and right wings), that defend the minimum state intervention.
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Employee Perceptions of the Latest Nigerian Banking Reforms

Employee Perceptions of the Latest Nigerian Banking Reforms

Several crises were generated by the reform exercise affecting both managements and employees. Studies have highlighted several perceptions of consolidation crises. For example, Williams, Etuk & Inyang (2014) stressed that banks’ productivity and performance were affected as part of outcomes of job losses. Some perception of the reform by employees smacks a justification of board’s action against the excesses of the executive managements in some banks who indulged in uneconomic practices such as granting loans without due diligence, perpetration of corporate governance abuses and outright official corruption. Post consolidation perceptions in some quarters suggest that the method adopted by the Central Banking of Nigeria (CBN) in executing the reform agenda was rash. For example, it is argued that the deadline stipulated by CBN was rather too short given the nature of tasks involved in mergers and acquisitions (M&As) operations (Ogunleye, 2010).
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Banking reforms, performance and risk in China

Banking reforms, performance and risk in China

On the other hand, Brissimis, Delis, and Papanikolaou (2008) find a positive impact of banking reform on efficiency in newly acceded EU countries from 1994 to 2005. Improved cost efficiency brought about by banking reforms has also been reported in other countries, such as Australia (Sturm and Williams 2004). These results are consistent with the belief that banking reforms should be able to help banks achieve efficiency gains. In a less competitive market, banks are likely to behave inefficiently, as they can avoid minimizing cost without being forced out of the market (Fu and Heffernan 2009). Privatization and foreign bank penetration increase the level of competition in the banking sector and therefore encourage banks to operate more efficiently. Demirguc-Kunt and Huizinga (1999) examine the effects of the entry of foreign banks into different countries, and find that in most cases foreign entry forces domestic banks to improve their efficiency.
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Banking sector reforms and the Nigerian economy: performance, pitfalls and future policy options

Banking sector reforms and the Nigerian economy: performance, pitfalls and future policy options

In Nigeria, we recognize four phases of banking sector reforms since the commencement of SAP. The first is the financial systems reforms of 1986 to 1993 which led to deregulation of the banking industry that hitherto was dominated by indigenized banks that had over 60 per cent Federal and State governments’ stakes, in addition to credit, interest rate and foreign exchange policy reforms. The second phase began in the late 1993-1998, with the re-introduction of regulations. During this period, the banking sector suffered deep financial distress which necessitated another round of reforms, designed to manage the distress. The third phase began with the advent of civilian democracy in 1999 which saw the return to liberalization of the financial sectors, accompanied with the adoption of distress resolution programmes. This era also saw the introduction of universal banking which empowered the banks to operate in all aspect of retail banking and non-bank financial markets. The forth phase began in 2004 to date and it is informed by the Nigerian monetary authorities who asserted that the financial system was characterized by structural and operational weaknesses and that their catalytic role in promoting private sector led growth could be further enhanced through a more pragmatic reform. Although these reforms have been acclaimed to be necessary, it is however debatable if they yielded the anticipated results. The objective of this paper therefore, is to assess the relative effectiveness of the reforms as well as gauge the likely impact of the outcomes on economic performance. Thereafter, the pitfalls which militated against the effectiveness of the reforms would be identified and future policy options recommended.
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Recapitalization and Banks’ Performance: A Case Study of Nigerian Banks

Recapitalization and Banks’ Performance: A Case Study of Nigerian Banks

Capitalization is an important component of reforms in the Nigeria banking industry, owing to the fact that a bank with a strong capital base has the ability to absolve losses arising from non performing liabilities. Attaining capitalization requirements may be achieved through consolidation of existing banks or raising additional funds through the capital market. In his maiden address as he resumed office in 2004, the current Governor of Central Bank of Nigeria, Soludo, announced a 13-point reform program for the Nigerian Banks. The primary objective of the reforms is to guarantee an efficient and sound financial system. The reforms are designed to enable the banking system develop the required flexibility to support the economic development of the nation by efficiently performing its functions as the pivot of financial intermediation (Lemo, 2005). Thus, the reforms were to ensure a diversified, strong and reliable banking industry where there is safety of depositors’ money and position banks to play active developmental roles in the Nigerian economy.
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The Effect of Financial Reforms on Banking Performance in an Emerging 	Market: Nigerian Experience

The Effect of Financial Reforms on Banking Performance in an Emerging Market: Nigerian Experience

The provision of adequate information enhances the integrity of banks and reduces the reputational risks that could lead to loss of confidence and patronage. The recent reduction in the market uncertainty and restriction in the risk of unwanted contagion have helped to encourage, stimulate, enhance and promote market discipline (Lamido, 2009). The monetary policies are expected to improve growth without jeopardising both price and financial stability. To manage liquidity both effectively and efficiently, there is need to ascertain credit, which is determined by interest rate and the trends are monitored in prices. The CBN has persistently assured Nigerians that none of the 24 post-consolidated banks would be permitted to be distressed / failed in 2005 (Soludo, 2004). The number of banks is now twenty-three including the Islamic bank- Jaiz bank as at 2013. Despite the CBN’s promise, the Nigerian banking industry continues to display phobic reactions to these measures particularly the swirling rumours on some customers, who might become apprehensive of the possible loss of their deposits. It must be understood that during the economic reform in the banking sub-sector in 2005, the CBN reiterated its effort to bring monetary policy in line with current economic exigencies, thawing liquidity frozen at the inter-bank exchange market (Nwude, 2005). Obviously, the banking sector shake-up is the effort of the Central Bank of Nigeria (CBN) that resolves to stick to the common year-end accounting system, in order to allow banks make full disclosure, provide and guide against non-performing loans comprising margin facilities and loans extended to other sectors of the economy, majorly oil and gas sector. The affected banks were unable to meet obligations to creditors and were in a grave situation; while management of affected banks acted in a manner detrimental to interest of depositors and creditors. The Central Bank of Nigeria (CBN) injected the sum of N420 billion naira in the first phase and in the second phase N200 billion was injected, totalling N620 billion (Six hundred and twenty billion naira) to salvage the affected eight banks as a bail-out fund to cushion the effect of the liquidity problems or from going under (Lamido, 2009). The injection of the fund into the banking system would go a long way to address the illiquidity that had been rocking the capital market. The injected funds into the banking sub-sector were essential in building a sound financial sector, which is capable of promoting long- term and consistent development with the goals being set at per with vision FSS2020 (i.e. Financial System Strategy, 2020).
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Impact of Banking Sector Reforms on the Performance of Nigerian Economy

Impact of Banking Sector Reforms on the Performance of Nigerian Economy

We analyse the role of the commercial banking sector relative to the economy (see table 3). This is to enables us appreciate whether the banking industry will assume any appreciable level importance in the aggregate economy as a result of consolidation. It was observed that, the assets of commercial banks which stood at 32.89 per cent of the GDP in 2004 rose marginally to 35.43 per cent in 2006. The degree of private sector credit has been suggested to be a better indicator of bank contribution to private investment. In 2004, commercial banks channeled 24.08 per cent of their lending to the non-bank private sector, but this declined to 22.47 per cent by 2006. Likewise, the value of commercial bank credit relative to the GDP which was 2.73 per cent in 2004 rose marginally to 2.91 percent in 2006. There has not been any appreciable growth in terms of the growth in credit to the private sector because the commercial bank credit which has a growth rate of 26.6 percent between 2003 and 2004, grew marginally to 30.8 percent in 2005 and declined to 27.82 percent a year after the consolidation. This confirms the views of Craig and Hardee (2004). In terms of price stability, the level inflation increased from 10.0 percent in 2004- a pre-consolidation period to 12.0 per cent, a post consolidation.
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The Determinants of Performance in the Nigerian Banking Industry 2004-2014

The Determinants of Performance in the Nigerian Banking Industry 2004-2014

The Nigerian government strategy to alter the structure and scope of its banking sector via consolidation and other accompanying sectorial reforms did not only impact the soundness of banks with significant cost of state sponsored interventions, policy also had long run implications for nature of industry competition and performance with direct consequence for the determinants of the industry‘s performance. Observed alterations to structure of the banking sector structure post these interventions directly impacted borrowing costs and motivations for the resulting enlarged financial institutions to extend credit to the real sector. Banks with improved performance post reforms have enhanced capacity to absorb adverse volatility in the system, hence, imperatives of evaluating the determinants of the industry‘s performance. The study analyzes determinants of performance in the Nigerian financial industry in pre and post consolidation era (2004-2014) using panel data with fixed-cross sectional effect to determining bank specific- industry and macro determinants of performance. Derived results show bank specific factors such as ability to manage expenses, capital, and intensity of loan usage significantly affect banks profitability. Model estimated from the study, however, strongly rejected the structure-conduct-performance (SCP) hypothesis as the influence of intense concentration in banking though highly significant is negative, which implies that banks are unable to engage in non-competitive behavior as the Nigerian banking space is competitive and highly regulated. In addition, impacts of most macroeconomic factors are found to be negligible. However, exchange rate variation affects bank‘s profitability in a significant manner.
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Reforms, Productivity, and Efficiency in Banking: The Indian Experience

Reforms, Productivity, and Efficiency in Banking: The Indian Experience

Studies on productivity in Indian banking have only begun to emanate of late. A recent study found that total factor productivity growth has improved marginally in the post deregulation period, but there was little evidence of narrowing of productivity differentials across ownership categories following deregulation [Kumbhakar and Sarkar (2003)]. Among various productivity indicators, labour productivity indicators like business per employee and profit per employee are most commonly used. In addition, business per branch is also used to judge branch-level productivity. The business per employee of Indian banks increased over three-fold in real terms from Rs 5.4 million in 1992 to Rs 16.3 million in 2004, exhibiting an annual compound growth rate of nearly 9 percent (Table 15). At the same time, the profit per employee increased more than five- fold: from Rs 20,000 to Rs 150,000 over the same period, implying a compound growth of around 17 percent. Branch productivity also recorded concomitant improvements. Overall, the balance of evidence suggests distinctive productivity improvements in the banking sector over the reform period. The extant literature suggests that such improvements could be driven by two factors: technological improvement, which expands the range of production possibilities and a catching up effect, as peer pressure amongst banks compels them to raise productivity levels. In the context of gradual deregulation of financial sector, several factors could have been at work: a significant shift of the best-practice frontier, driven by a combination of technological advances, financial innovation and different strategies pursued by banks suited to their business philosophy and risk-return profile, changing composition of banks’ input-output, and reduction in total cost due to improvements in overall efficiency. While it is difficult to pinpoint the relative mix of these factors in raising productivity, the bottom-line is clear: Indian banks witnessed significant productivity improvements, post-reforms.
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Capital Adequacy and Banking Performance in a  Post – Consolidation Era: A Study of Selected Nigerian Banks

Capital Adequacy and Banking Performance in a Post – Consolidation Era: A Study of Selected Nigerian Banks

This research study was conducted on capital adequacy and banking performance, its opportunities and challenges for Nigeria Economic Development. The study examined how the banking sector performed a decade after the 2005 banking recapitalization, the problems associated with the profitability and efficiency of banks. The study utilized regression using E-views statistical package. The Durbin Watson statistics indicated that the successive error terms are close to one another on the average. This means that there is positive serial correlation. The Akaike and Schwarz criteria criterion shows that the difference between the two is very negligible, an indicator of a near perfect model convergence near zero. The correlation coefficient R 2 for each of the banks studied indicated that most of the variations in the dependent variables were explained in the independent variable. The model’s goodness of fit adjudged reliable. It became apparent from the findings that the banking sector reforms in 2005 significantly impacted on the lending rates, deposits and profitability. The study recommends that various macroeconomic and institutional problems facing the Nigerian economy, which include inappropriate macroeconomic policies, inadequate policy coordination, social -political instability, high cost of doing business and multiple taxes and levies should be tackled with new bank reforms to increase capital and reduce undue risks.
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Financial Appraisal of Commercial Banks in India: A Post Reforms Asessment

Financial Appraisal of Commercial Banks in India: A Post Reforms Asessment

In the process of satisfying the canon of social purpose in their lending operations, banks could not adequately take care of the traditional canons of viability, productivity, liquidity and profitability. As a matter of fact, commercial banks in India in the recent past have developed certain rigidities and weaknesses. The profitability of the banking sector during recent times has been under tremendous strain and therefore, the operational efficiency in the present phase has to be measured by the measuring rod of profitability alone. While there have been several piecemeal studies covering the various aspects of profitability of various banks groups, there has been no systematic and comprehensive effort to study the trend of performance, the different parameters of profitability and a comparative analysis of various bank groups operating in India in terms of profitability. In view of the importance of improving the profitability and productivity of the banking sector in recent years, an effort to identify the various factors which significantly influence that performance bottom of banks in either direction is all most essential.
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