Analysis of Cash Flows for Public Sector Banks in India | Original Article

ABSTRACT:

Banking system, being the most important fundamental of the overall economic system of any country plays a major role in mobilizing nation’s savings and in channelizing them into high investment primacies and better be pronounced as the kingpin of the chariot of fiscal progress. Evaluation of the financial performance of the banking sector is an effective measure and indicator to check the steadfastness of the economic activities of the country. In such a competitive environment, banks and financial institutions are forced to re-examine their performance in this ever-changing economics of the 21st century. With this view, in the present paper, the financial performance of the public sector banks of India has been analyzed. Ratio analysis being a very important part of the strategic planning is used for the analysis. In this paper, to evaluate the financial performance of public sector banks, five key financial ratios have been used. The present study adopts an analytical and descriptive research design.