Volume : VII, Issue : IX, September - 2017

Financial Performance of Banks of BRICS – A Comparative Study

Dr. Jeelan Basha. V

Abstract :

 Banks have an important role to play in the economic development of any nation. The financial performance of a bank indicates its profitability which is an important indicator of the efficiency of banks. In this paper an attempt has been made to study the financial performance of banks of Brazil, Russia, India, China and South Africa (BRICS), which are the emerging economies of the world.  The financial performance of these banks will have a greater impact on the world economy. Their financial performance is measured using two selected financial ratios namely Return on Equity (ROE) and Return on Total Assets (ROTA). The effective and efficient utilisation of equity share capital in particular  and total assets in general will pave the way for  analysing sound  and healthy symptoms  of banks in turn leading to economic progress of those countries.

Data is collected covering fourteen ten years from 2001–02 to 2014–15. This is a secondary data sourcing not only from World Bank but also from other journals and magazines. This is tabulated and analyzed using descriptive and inferential statistics and   tools used are compound annual growth rate (CAGR) coefficient of variation (C.V.), coefficient of correlation and covariance. E–views 7.1 version is used for securing output. The primary objective of the study is to analyse the profitability of the BRICS banks. The objectives of the research are to analyse financial performance of BRICS banks using ROE and ROTA and to know the findings from the analysis. It is concluded that India has the most consistency among BRICS banks with respect to average annual ROE and ROTA. There are compound annual declines Rates of not more than 2% each in ROE and ROTA during the study period of BRICS banks. ROE of Banks of BRICS are same both by parametric and non–parametric test and not by ROTA at 5% level of significance.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Dr. Jeelan Basha.V, Financial Performance of Banks of BRICS – A Comparative Study, INDIAN JOURNAL OF APPLIED RESEARCH : Volume-7 | Issue-9 | September-2017

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