Published Paper Details:

The main purpose of the present study is to investigate the impact of bank specific variables on financial performance of public sector banks. Multiple regression analysis was used in the study. This study adopted the return on assets (ROA) and net interest margin (NIM) as the profitability indicators to measure the profitability of public sector banks. ROA and NIM are both dependent variables. The liquidity risk, credit risk, capital adequacy, expenses management, solvency, growth rate and efficiency are the independent variables used in the study to investigate and explain the impact of bank specific variables on the financial performance of public sector banks. Secondary data was collected for time period of 12 years (2008-09 to 2019-20) from the financial statements of selected banks. The results of the study suggest that when ROA is taken to represent the profitability of public sector banks; liquidity risk, capital adequacy and expense management have adverse effect on the financial performance of selected public sector banks. However, credit risk, solvency and growth rate have positive effect on the financial performance of the selected public sector banks in India. When NIM is taken to represent the profitability of public sector banks; liquidity risk and capital adequacy have negative impact on financial performance of selected public sector banks. Whereas, expense management and credit risk have positive impact on the financial performance of selected public sector banks in India.