PROFITABILITY ANALYSIS OF COMMERCIAL BANKS

Abstract

Profit is the main goal of every business. It is a barometer to measure the success of the business. Every organization works to earn profits. Profitability position shows the market value of the company. Commercial banks play a vital role in the world by providing financial services to the people. Profitability position of banks shows the efficiency of the banks in providing their services. There are many indicators which show the flow of profits in an organization. Banks earn profits by collecting interests from advances. The interests charged by the banks vary from Public Sector Bank to Private Sector Banks. Public Sector Banks focus on service motive so interests are low , bur Private Sector Banks work for profis, so Interest rates are more The present paper focuses on understanding and analyzing the profitability of Union and HDFC bank. Through various indicators, a comparative study undertaken between Union and HDFC bank.