Impact of technology on the financial performance of selected nationalized and private sector banks in India

Document Type : Research Paper

Authors

DOS in Economics and Co-operation, University of Mysore, Manasagangothri, Mysuru, India

Abstract

The study assessed the financial performance of banks which found that usage of technology grew with each passing year. As a result of the effective use of technology, banks have been able to manage the increasing transaction volumes that come with a larger customer base in a more accurate and timely manner. The study's major goal was to analyze the impact of technology on the financial performance of a number of Indian banks, both public and private. The data was gathered via secondary sources in order to examine the impact of technology on financial performance. The data were evaluated using descriptive analysis and the t-test, which revealed a substantial difference in the financial performance of selected Indian nationalized and private sector banks. Financial indicators such as cash deposit ratio, the ratio of deposits to total liabilities, ratio of term loans to total advances and ratio of equity showed a significant difference in the financial performance of selected nationalized and private sector banks in the country.

Keywords

[1] S.D. Gupta, A. Raychaudhuri and S.K. Haldar, Information technology and profitability: Evidence from Indian
banking sector, Int. J. Emerging Mkts 13 (2018) 1070–1087[2] D.M. Nachane, S. Ghosh and P. Ray, Banking in India, University Library of Munich, Germany, MPRA Paper,
2007.
[3] S. Nawafleh, The effect of information technology on the bank profitability empirical study of Jordanian banks,
Int. J. Eng. Bus. Manag. 10 (2015) 170.
[4] V. Rajaraman, History of computing in India: 1955-2010, IEEE Ann. Hist. Comput. 37 (2015) 24–35.
[5] Reserve Bank of India (2005-2020), www.rbi.org
[6] V. Sarabu, Banking Sector in India: A Review, Kakatiya Government (UG&PG) College (NAAC “A” Grade),
Hanamkonda, Warangal District (Telangana State), 2017.
[7] M. Shaukat and M. Zafarullah, Impact of information technology on organizational performance: An analysis of
quantitative performance indicators of Pakistan’s banking and manufacturing companies, Eur. J. Econ. Finance
Admin. Sci. 16 (2009).
[8] The Payment and Settlement Systems Act (2007), Reserve Bank of India, Available at
https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/86706.pdf
[9] S.K. Vikram and G. Gayathri, Impact of information technology on the profitability of banks in India, Int. J. Pure
Appl. Math. 118 (20) (2018) 225–232.
Volume 13, Issue 1
March 2022
Pages 3633-3643
  • Receive Date: 10 June 2022
  • Revise Date: 20 September 2021
  • Accept Date: 28 October 2021