Earning Quality of Scheduled Commercial Banks in India

In a developing economy the role of bank is more creating and purposeful than in the developed one. where the banking habits of the people are not developed, the task of creating and spreading the banking habits and of mobilizing the country's resources becomes a challenging one. It is here that banks play a crucial role because they act as a bridge between those who require finance and those who have finance. The profit earning capacity of the banks decides its role in the economic operations of the country. If the banks have huge profit, it leads to strong role in the economic operations. Hence, profit of the banks is the key for the success of the bank and also for the country. In India, Scheduled Commercial Banks (SCBs) are broadly divided into Public Sector Banks (PSCBs), Private Sector Banks (PvtSCBs) and Foreign Banks (FCBs). At present there are 82 SCBs operating in India out of which 28 are PSCBs, 25 are PvtSCBs and 29 are FCBs. This books makes an attempt to analyse the earning quality of SCBs in India.