AN APPRAISAL OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN INDIA

Indian banking sector has emerged as one of the strongest drivers for India’s economic growth .The Indian banking system is among the healthier performer in the world , when compared with top three banks in total asset and in terms of return on assets . A diverse range of studies have been conducted by the researchers for measuring the performance of the banks , which present different perspective with regards to the banks in different countries . Traditional bank performance evaluation systems primarily use factors such as return on investment (ROI) and return on investment (ROI) to assess the banks’ financial performance. However , nowadays intellectual and managers of organization find the traditional system of performance evaluation have been typically based on financial views which are incomplete in evaluating overall performance of the organization and presenting an effective feedback. Excessive financial measurement may increase organization’s short term profit , but bring about losing competitive situation and threatens long term profit . Customer happiness is critical to retail banking’s profitability, which has a long-term financial influence on banks’ operations. The efficiency and level of satisfaction of a bank’s human resources determine its performance. Banks that have a high level of human capital efficiency and employee satisfaction do well. According to studies, banks that adhere to being socially responsible in their daily operations outperform in terms of financial performance. In both the short and long term, there is a beneficial association between corporate social responsibility and bank financial performance. As a result, there are two key areas from which to assess a bank’s total performance: financial factors and human aspects. The banking sector is extremely intellectually intensive, and its principal asset is its human capital, as staff expenses are the banking sector’s largest operating expense. Human capital is a cri