A STUDY TO MEASURE THE RELATIONSHIP BETWEEN THE PERFORMANCE AND ITS INDICATORS IN COMMERCIAL BANKS

Abstract

The current study aims to identify the various indicators for measuring the performance of banks and to find out how these performance indicators and performance of the banks are related to each other. The study has been conducted for India commercial banks. On the basis of review literature, five indicators of the performance of the banks have been taken such as; liquidity, asset quality, capital adequacy, profitability and efficiency. The study is based on the secondary data taken for last three financial years from 2011-12 to 2013-14. Multiple regression analysis technique has been used in the study. It was found from the study that ROA is positively related to efficiency, liquidity, profitability and capital adequacy ratio while ROA is negatively related with asset quality variable.