ABSTRACT
Tamil Nadu is the one of the foremost states in providing financial services. In India, all the banks provide fundamental banking services such as accepting deposits and lending loans to needy people. This paper attempts to analyze the profitability and liquidity position of Tamilnadu-based private sector banks. These Private sector banks form a major part of the total banking system in India, so there is a need to evaluate the liquidity and profitability of these banks. This paper is primarily based on secondary data. The present paper will make an attempt to explore and understand the factors influencing the liquidity and profitability of Tamilnadu-based private sector banks. In order to derive the open-handed results from the information collected through secondary data, various statistical tools like mean, standard deviation, and F value analysis have been accomplished. The scope of the paper is restricted to selected private sector bank's data period from 2009-2018. The study finds that the liquidity position of Tamilnadu-based private sector banks KVB, TMB, CUB, and LVB are high as compared to the other commercial banks but these banks should also take care of their profitability as high liquidity might have an adverse effect on the long term investment of these banks and also the research concluded that to maintain sufficient balance between liquidity and profitability to enhance their solvency level.
Keywords: Profitability, Liquidity, Performing and non-performing Assets, Return on Investments(ROI).
Received : April 2022
Accepted : April 2022
Published : May 2022