Earning Quality of Scheduled Commercial Banks in India: A Sector-Wise Analysis

Abstract

The commercial banks play a very important role in India. Interest income, non-interest income and spread are the important avenues of banks’ profitability. Subsequent to economic reforms, Indian banking system has undergone a sea change. Against this backdrop, the income and expenditure pattern of scheduled commercial banks in India has been analyzed and trend analysis of earnings quality has been undertaken with appropriate statistical tools, and based on the findings, suggestions have been offered for improving the overall performance of Indian banking industry.