Efficiency and Profitability in Indian Commercial Banks A Comparison of Public Private and Foreign Banks

Abstract

The main challenge before a developing nation is to foster sustainable growth For growth or its recovery the nations productive capacity needs to be strengthened and expanded The success of economic development depends essentially on the extent of mobilization of resources and investment and on the operational efficiency and economic discipline displayed by the various segments of the economy Banks play a positive role in the economic development of a country as they not only accept and deploy large funds in a fiduciary capacity but also leverage such funds through credit creation Banking is the fulcrum of an economy and forms the core of the financial sector of an economy The role of commercial banks is particularly important in underdeveloped countries Through mobilization of resources newlineand their better allocation commercial banks play an important role in the development process of underdeveloped countries Prof Sayers states that Banks are not merely purveyors of money but also in an important sense manufacturers of money