Influence of internal and macro factors on profitability of Indian commercial banks: empirical study

Abstract

This review aims to study the influence of financial performance in commercial banks in India. The article used descriptive analysis, correlation matrix, and regression analysis. The results showed that firm size, capital adequacy, deposit, and inflation rate have a strongly significant influence on financial performance, while gross domestic product (GDP) has no significant impact on return on assets. The outcomes also indicated that firm size (LOGAS), capital adequacy (CA), and deposit (DP) have a negative influence on financial performance, whereas macroeconomic features as GDP and rate of inflation have a positive effect on return on assets of the current investigation. This article bridges the existing gap in the financial performance and profitability of Indian banks during the period of the study. This study also very important for users, analyses, investors, academicians, and research scholars.