tailieunhanh - The impact of capital adequacy ratio under basel ii on the determinants of profitability ratios of Punjab national bank

The present study has been carried out to observe the impact of capital adequacy ratio on the profitability ratios of Punjab National Bank during the implementation period of Basel II. | The impact of capital adequacy ratio under basel ii on the determinants of profitability ratios of Punjab national bank International Journal of Management IJM Volume 8 Issue 2 March April 2017 105 Article ID IJM_08_02_011 Available online at http ijm JType IJM amp VType 8 amp IType 2 Journal Impact Factor 2016 Calculated by GISI ISSN Print 0976-6502 and ISSN Online 0976-6510 IAEME Publication THE IMPACT OF CAPITAL ADEQUACY RATIO UNDER BASEL II ON THE DETERMINANTS OF PROFITABILITY RATIOS OF PUNJAB NATIONAL BANK Amitabh Bhowmick Research Scholar Institute of Management studies Banaras Hindu University Uttar Pradesh India Dr. Shashi Srivastava Assistant Professor Institute of Management Studies Banaras Hindu University Uttar Pradesh India ABSTRACT Risks to a bank are responsible for an adverse impact on the capital and profitability. The profitability ratios play an important role in deciding the strength of a bank over the years. The present study has been carried out to observe the impact of capital adequacy ratio on the profitability ratios of Punjab National Bank during the implementation period of Basel II. The relationship between the Capital adequacy ratio and profitability ratios has also been explained in the present study. The profitability ratios like Dividend Payout Ratio Return on Equity have shown decreasing trend during the Basel II period whereas ratios like Return on Capital Employed Return on asset Earning per Share and Dividend Payout Ratio have not shown consistent decrease. The correlation and regression analysis show positive relationship between all the profitability ratios and Capital Adequacy ratio except earnings per share. Key words ROSF Return on Shareholder s Fund ROA Return on Assets DRP Dividend Payout Ratio DPS Dividend per Share ROCE Return on Capital Employed ROE Return on Equity EPS Earnings per share and CAR Capital Adequacy Ratio . Cite this Article Amitabh Bhowmick and Dr.