Digitalization impact on banking operational profitability with reference to public and private sector banks

The study has been emphasized on the digital banking impact on the operational profitability of the select public and private sector banks. The study has considered the 3G and 4G period. The study has considered the State bank of Indian from the public sector bank and HDFC bank from private sector. The study has considered the secondary data from the period 2012–13 to 2017–18. The Vector error Correction Model has been applied and the found that the long and short run relation has been observed. The ordinary least square method has been applied and found that the impact of the NEFT, RTGS and mobile transaction are having positive influence on the operating profitability. The VAR model predicted that near future the growth of the digital transactions will have positive growth of the profitability of the banks.