Branch Profitability

Period: 1770 – 1969; Key Features: Bank of Hindustan (1770, Calcutta) = first; Presidency Banks — Bank of Calcutta (1806), Bank of Bombay (1840), Bank of Madras (1843); merged into Imperial Bank of India (1921) converted to State Bank of India on 1 July 1955 (India's first public sector bank)

Period: 1969 – 1991; Key Features: 14 banks nationalized in 1969 under the BR Act, 1949; 6 more in 1980 total 20 nationalized banks

Period: 1991 date; Key Features: Narasimham Committee reforms — entry of private/foreign banks, deregulation of interest rates, gradual cut in CRR & SLR, capital adequacy norms (Basel I III), risk-based supervision

Profit: Surplus/excess money earned after deducting all expenses from revenue; Profitability: Ability of a company to generate profit relative to its resources, investments, costs

Profit: Actual rupee amount earned; Profitability: Efficiency & effectiveness of operations / financial strategy

Profit: Total Revenue − Total Expenses; Profitability: Ratios — Gross Profit Margin, Net Profit Margin, ROI, ROA, ROE

Profit: Specific period (month, quarter, year); Profitability: Examined across periods to assess trends & sustainability

Profit: Absolute — ignores company size; Profitability: Relative — allows cross-firm / cross-industry comparison