Impact of Banks Characteristics on Banks Financial Performance- A study of Selected Public Sector Banks of India

Abstract

Return on assets (ROA) is defined as the ratio of net income to total assets. This ratio shows the rupee amount of net income generated per rupee of assets, and indicates how well the assets of the bank are utilized in generating net income. Many of the banks characteristics are responsible for the inconsistency in ROA of banks. This research paper is an attempt to analyze the impact of banks characteristics on banks financial performance. The research, "impact of banks characteristics on banks financial performance: a study of selected public sector banks of India " has been carried out for the time period of 2005-06 to 2014-15 (10 years) financia l years of ten selected public sector banks of India. The cause and effect relationship was checked by regression model using EViews7. Since, the time series data was employed, stationarity of the data was checked in order to avoid spurious regression. The Augmented Dickey - Fuller test was used for unit root testing to check the stationarity of the time series data. Research has disclosed a significant relationship between banks characteristics and banks financial performance.