International Journal For Multidisciplinary Research

E-ISSN: 2582-2160     Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 6 Issue 6 November-December 2024 Submit your research before last 3 days of December to publish your research paper in the issue of November-December.

Analyzing Return on Equity (ROE) Dynamics in Banking: Insights from P/E Ratio, Debt Equity Ratio, and Net Profit Margin

Author(s) Dr. Chidananda H L, Abhiram S, A Gurucharan, Janan Achaiah M B
Country India
Abstract The study delves into the intricacies of Return on Equity (ROE) dynamics within the banking sector, with a specific focus on the State Bank of India (SBI) over a five-year period spanning from 2019 to 2024. Leveraging financial data extracted from Moneycontrol, the analysis aims to discern the influence of pivotal financial ratios—namely the P/E Ratio, Debt Equity Ratio, and Net Profit Margin—on ROE. Through regression analysis, the study endeavors to illuminate the relationship between these independent variables and ROE. The results underscore significant positive associations between the aforementioned financial ratios and ROE. Particularly, elevated values of the P/E Ratio, Debt Equity Ratio, and Net Profit Margin are found to coincide with augmented ROE for SBI. These findings emphasize the pivotal role of financial metrics in gauging the profitability and fiscal robustness of banks.
Keywords P/E Ratio, Debt Equity Ratio, and Net Profit Margin and Return on Equity
Field Business Administration
Published In Volume 6, Issue 3, May-June 2024
Published On 2024-05-22
Cite This Analyzing Return on Equity (ROE) Dynamics in Banking: Insights from P/E Ratio, Debt Equity Ratio, and Net Profit Margin - Dr. Chidananda H L, Abhiram S, A Gurucharan, Janan Achaiah M B - IJFMR Volume 6, Issue 3, May-June 2024. DOI 10.36948/ijfmr.2024.v06i03.21019
DOI https://doi.org/10.36948/ijfmr.2024.v06i03.21019
Short DOI https://doi.org/gtwmqv

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