“India's Private Commercial Banks' Financial Performance: Multiple Regression Analysis”

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E. Shanker

Abstract

Every nation's economic development depends heavily on banks, particularly private ones. Thus, the performance of the three main private sector banks that are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) is the focus of this study. Bank performance is statistically analysed using financial ratios. The financial performance of the chosen private banks has been evaluated using three key indicators: return on equity (ROE), a crucial profitability ratio that investors use to gauge how much of a bank's income is returned as shareholder equity; Tobin's Q model (price/book ratio), which measures market-based performance; and return on assets (ROA), which measures internal-based performance.


The data was chosen for the chosen banks' 2019–2024 timeframe. The three indices of financial performance—bank size, credit risk, asset management, operational efficiency, and debt ratio were determined using the multiple regression technique. The findings show that the financial performance of private commercial banks is impacted by each of the chosen ratios.

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How to Cite
E. Shanker. (2024). “India’s Private Commercial Banks’ Financial Performance: Multiple Regression Analysis”. European Economic Letters (EEL), 14(3), 3064–3073. https://doi.org/10.52783/eel.v14i3.2081
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