IMPACT OF DIGITAL BANKING ON PROFITABILITY OF PUBLIC & PRIVATE SECTOR BANKS IN INDIA

Abstract

E-Banking is a major innovation in the field of banking. Generally electronic banking systems where the transactions and relationship between bank and clients grow through electronic devices instead of paper documents.  Further, electronic banking is defined as the automated delivery of new & traditional products &services directly to customer through electronic, interactive communication channel. E- Banking has proved to be the game changer in banking industry. Imagine world before that!! People would depend highly on cheque and demand draft payments with long queue in bank branches much of the time energy manpower being wasted .in these hectic schedules where people juggle for work life balance e banking is a boon.

With all these facts researcher wanted to identify the impact of E banking services on the profitability of bank considering much of the time, manpower and infrastructure to be used otherwise is saved with e banking. The variables considered for the study are - Return on Net Worth, Return on Assets, Net Profit Margin ATM Transactions, POS Transactions, Mobile Banking. It has been  opined in the  paper that if  all the banks could  proceed  to the path of  e-banking  in a proper manner, the overall  profitability due to e-banking will improve in coming years.