Major transformations in Indian banking industry & Its impact on profitability

One of the major changes that has occurred in Indian banking industry in the past is the evolution of electronic banking services by the banks which are introduce by them with the sole objective of earning and increasing their profits and to maintain a strong position in the banking industry by the way of satisfying the customers in a better way than before. In order to comparatively analyse bank's profitability in pre and post e-banking period, five bank groups namely Nationalized Banks, SBI & its associates, Old Private Sector Banks, New Private Sector Banks and Foreign Banks are selected and their profitability trends are evaluated in pre and post e-banking period on certain parameters related to profitability. Pre e-banking period is taken as 1998 to 2001 and post e-banking period is taken as 2001 to 2012. Performance is evaluated with the help of average, coefficient of variation, range, skewness and Kurtosis. The study concludes that conclude that on the five selected bank groups, foreign sector bank group is the most profitable bank group as it shows a decline in its burden and an increase in its spread and also a significant increase in its net profit/working funds, net profit/total income and net profit/total deposit. This shows that this bank group is successful in utilizing the benefits of e-banking channels for its profitability.