Profitability of Commercial Banks in The Globalized Era

Indian banking has transformed in all aspects with the globalization concept shifted from manual to electronic work along with innovative products/services and increasing competition among public and private banks. The private banks are bringing services to the very door step in new and attractive way, according to customer demands and use advanced technology. While public banks, even having large branch network and staff, still are laggards due to partial computerization and lack of electronic channels causing gap in profitability in comparison to private sector banks. This volume focuses on performance of Indian commercial banks in the globalized period from 1998-99 to 2005-06 which covers the study of profitability behaviour and some selected determinants. The factors responsible for poor performance of the banks in terms of deteriorating profitability have also discussed. The study also suggests some possible measures to improve the performance of poor performing banks. Especially relevant in today’s environment of financial crisis, this book will be useful to researchers, policy makers, economists, analysts, students and readers interested in the banking system of India.