A Comparative Study of Earnings Quality of Selected Five Commercial Private Banks in India

Abstract

Banks have a significant role in the economic growth of every country, especially private banks. Therefore, the present study concerns the earnings quality of the five critical private sector banks based on market capitalisation. Financial ratios are used for the statistical analysis of a bank's performance. Earning Quality has been analysed to measure the profitability status of the selected private banks. This model includes parameters like net Interest Margin, net Profit to Total Income Ratio, Net Profit to Total Assets Ratio, Operating Profit to Total Assets Ratio, Interest Income to Total Income Ratio, and Growth in Profit. The selected banks' data for 2019 to 2023 was selected. Private banks like HDFC BANK, ICICI BANK, KOTAK MAHINDRA BANK, AXIS BANK, and INDUSIND BANK have been chosen for the analysis. Results indicate that all the selected ratios impact the Earning Quality of Private commercial banks.