EXPLORING THE FINANCIAL PERFORMANCE OF SELECTED INDIAN COMPANIES: A FOCUS ON PROFITABILITY INDICATORS

Abstract

Profitability is a critical determinant of the sustainability and growth of banks in India, playing a central role in ensuring the stability and efficiency of the financial system. It reflects a bank's ability to generate income from its core operations while efficiently managing costs, risks, and resources. A profitable banking sector is essential for economic development, as it enables banks to provide credit, fund large-scale projects, and support financial inclusion initiatives. This study examines the financial performance of selected Indian banks with a specific focus on profitability indicators. Utilizing data from two leading banks, State Bank of India (SBI) and HDFC Bank Ltd., over a five-year period (2019-20 to 2023-24), the research aims to analyze and compare key profitability metrics, particularly the Net Interest Margin (NIM). The findings highlight trends in profitability across these institutions, shedding light on their operational efficiency and financial strategies in an evolving banking landscape. The analysis also delves into the impact of macroeconomic factors, regulatory changes, and competitive dynamics on their financial performance. Insights from this study contribute to a better understanding of how banks manage profitability in the context of India's complex and competitive financial ecosystem.