A COMPARATIVE STUDY ON SELECTED INDIAN BANKS' FINANCIAL RATIOS FOR THE PERIOD FROM FY 2017–2021
Keywords:
Performance analysis, financial ratios, Dupont Analysis, Public sector banks, Private sector banksAbstract
The main aim of this paper is to analyse how an organisation or a company’s financial performance can be determined using the financial ratios. This research examines the performance of the commercial banking industry from FY 2017 to FY 2021. For the stated time periods, financial statements of Indian banks including SBI, PNB, BOI, HDFC, ICICI, and YES Bank were retrieved from databases including annual reports, EMIS, money control, yahoo finance, and Google finance.
A financial ratio is a mathematically defined connection between two accounting data (or simply as a ratio). Ratios aids in the qualitative assessment of the firm's financial performance and the summarization of vast amounts of financial data.
In this study, financial measures for liquidity, activity, leverage, profitability, and market value will be used to analyse the financial statements of these institutions. For the liquidity test we are using: CR(Current ratio), and QR(Quick ratio). The following metrics were used to determine profitability: NPM (net profit margin), PM (profit margin), ROE (return on shareholder equity), ROA (return on assets). PE ratios and EPS were used to assess market-based activity.
