SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES |
VOL. 5 |
NO. 2 |
PAPER 5 |
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CREDIT DEPOSIT RATIO AND NET INTEREST MARGIN (NIM) OF INDIAN COMMERCIAL BANKS – AN ANALYSIS |
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M. Syed Ibrahim |
Assistant Professor, Sona School of Management, Salem, Tamil Nadu, India |
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The financial institutions are one of the main instruments of economic
development as they provide financial resources. An efficient financial
system can perform this function by raising the level of economic
activity. Financial institutions are the tools to mobilize savings and
encourage investments by diverting it to productive channels. The banks
manage everyday money matters for private individuals and companies such
as the payment of salaries and bills and the repayment of loans, other
means of payment such as bank cards or charge cards, can be added to the
current accounts. In addition to normal current accounts, the banks also
offer accounts paying higher rates of interest, intended for investment
purposes. Every day money matters are managed through the banks. The
paper provides a comprehensive study of functional spread of Commercial
Banks and analysis of NIM for three sectors of banks and its variations
over the period |
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