A Study on Liquidity Position of Public Sector Banks in India after Liberalisation

Dr. M. Krishnaveni, N. Umamaheswari

Abstract: Introduction of reforms in the banking sector has changed the face of Indian banking industry. The globalization of operations and implementation of new technologies have led to increase in resource productivity, increasing level of deposits, credit and profitability. The objective of the study is to know the growth of the performance of Indian banks and to analyses the liquidity position of public sector banks after liberalization. In this study all the public sector banks were selected such as a19 Nationalised banks, 5 SBI Associates and SBI. We have chosen the liquidity ratios to analyse the liquidity position of the public sector banks. The statistical tools also used in this study such as standard deviation, co-efficient of variation, compound annual growth rate and two way ANOVA. Through this study we found that the overall liquidity position of Nationalized banks and SBI Associates are comparatively better than SBI.

Keywords: Reforms, Liquidity, Public Sector Banks, SBI, SBI Associates, Nationalized Banks