Assessment of Earning Quality of Indian Commercial Banks

Abstract

Liberalisation, Privatisation and Globalisation has changed the ways of banking business in India and the banks are facing a challenge to improve their earnings on one hand and to serve the customers efficiently in innovative ways on the other hand. Earning quality is an important criterion for determining the efficiency of banks. Raising their earnings is one of the important ways by which a bank can vigorously expand its operation on sustained long term basis. The present study is concerned with assessing the earning quality of Indian commercial banks by computing related ratios and the study period is ten years. The banks are classified into three bank groups namely SBI group, Nationalised bank group and Private bank group and the secondary data is used to assess the earning quality of Indian commercial banks successfully.