DOI: 10.36347/sjebm.2017.v04i07.007

Pages: 436-445

Banks in India have been undergoing major challenges in the dynamic environment over the past few years. In order to resist negative shock and maintain financial stability, it is important to trace the determinants that most influence the overall performance of the banks in India. This present study aims to find the determinants of five major bank groups in India namely, State Bank of India &its Associates, Nationalised Banks, New Private Sector Banks, Old Private Sector Banks and Foreign Banks, consisting a total of 75 banks. This paper uses panel data regression method to investigate the impact of various internal factors on profitability of banks. The empirical results have found strong evidence that profit per employee, net interest margin, net non-performing assets ratio and non-interest income have a significant impacts on the profitability for all bank groups.