A critical assessment on the profitability position of public sector banks in India Dr. Sen Som Sankar1, Dr. DasGupta Manidipa2 1Assistant Professor, Department of Commerce, The University of Burdwan, somsankarsen@gmail.com 2Assistant Professor, Department of Commerce, The University of Burdwan, dasgupta_manidipa@yahoo.co.in JEL: G21 Online published on 22 June, 2017. Abstract Banks are considered to be the most vibrant and energizing functionaries in the financial system of any country. Beside ensuring proper intermediation between investors and borrowers of different fields of economic activism, banks confirm channelization of their financial service to the socio-economically deprived poor at soften terms and conditions and thus they promote a scope for inclusive growth in any country. In India, the Public Sector Banks (PSBs) are supposed to be the main motivators in socio-economic prosperity and growth with their functional activities in the blend of commercialization with socialization. Hence, the PSBs have to bear tremendous pressure due to their functioning towards the commercial aspect in a packaging of socialization mainly after removing of the Government protected environment to high competitive financial linkage with the rest of the world. Therefore, to preserve the financial movement towards country‘s socio-economic progression as per the recommendations of the Central Bank of India, the PSBs have to maintain a strong financial health. Now, the profitability position can be considered as one of the indicators of financial health and thus sustainability of any banking institution. In this context, profit earning capacity of any bank may be dependent on the size of the same as determined through its asset size, number of bank branches, customer etc. On this ground, the present paper takes its objectives as to (i) evaluate the profitability position of the PSBs with some selected financial ratios, (ii) assess the comprehensive scores on average and consistent position of profitability of PSBs on the selected ratios (iii) frame a bank-bank comparative assessment as per the profitability position of the concerned banks within a specific group and sector (Public Sector Bank) as a whole (iv) examine whether there is any significant difference in the profitability position of any of two banks as per the concerned ratios for the study period (2001–2002 to 2014–2015) by applying some basic profitability ratios and by considering appropriate statistical tools, techniques under relevant research methodology. Top Keywords Public Sector Banks, Profitability, Consistency, Profitability Ratio. Top |