Efficiency and Profitability: A Case Study of Banking Sector in Sri Lanka

T.Mangaleswaran
T.Mangaleswaran
Priya
Priya
Velnampy
Velnampy
University of Jaffna

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Efficiency and Profitability: A Case Study of Banking Sector in Sri Lanka

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Abstract

Organizational efficiency is still important to planning because it enables plans that are possible to achieve profitability. Efficiency measure of how well or how productively resources are used to achieve a goal. Banking sector is important factor for economic development. The study is also aimed at finding the effect of changes in efficiency levels on profitability of banking in Sri Lanka. The study covered banking sector in Sri Lanka over a period of past 5 years from 2008 to 2012. Correlation and regression analysis were used in the analysis and findings suggest that there is a significant relationship exists between efficiency and profitability. However, the findings of this paper are based on a study conducted on the banking sector in Sri Lanka. Results of this study found that the Sales to Total Asset (SA/TA) is significantly correlated with Operating Profit Margin (OPM) and Return on Equity (ROE). At the same time SA/TA and Operating Expenses to Total Assets (OPE/TA) and Loan to Total Assets (LO/TA) are significantly correlated with Net profit Margin (NPM).

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

T.Mangaleswaran. 2014. \u201cEfficiency and Profitability: A Case Study of Banking Sector in Sri Lanka\u201d. Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 13 (GJMBR Volume 13 Issue D5).

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Version of record

v1.2

Issue date
February 4, 2014

Language
en
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Efficiency and Profitability: A Case Study of Banking Sector in Sri Lanka

Priya
Priya
K
K
Velnampy
Velnampy
T
T

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