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  R VI W OF LITER TURE ND DESIGN OF THE STUDY  In this chapter the researcher has made an attempt to presmt the review of literature. To present the review of literature the researcher has studied several committee reports appointed by the-~eserve ank of India, Books, published and unpublished theses on the subject concerned, articles published in various reputed journals, periodicals, websites, to glean the infirmation needed. Luther, J C 1976)', chaired the committee appointed by the Reserve Bank of India to study the productivity, efficiency and profitability of commercial banks. The committee analysed the various issues like planning, budgeting and marketing in commercial banks. Matbur, O P 1977)'~ conducted a study on Public sector banks in India-A case study of State Bank of India . The main finding of his study was that the State Bank of India, in its two decades of service, has accelerated the growth of Indian economy in two significant ways: (i) by pursuing the policy of vigorous branch expansion in general and its rural orientation in particular, and (ii) by playing a leading role in introducing bank credit facility to the new fields of the priority sectors of the Indian economy. The bank has also played a leading role in developing the backward regions of the country. Kulkarni, L.G. (1979f, in his study on Development responsibility and profitability of banks , has stated that while considering banks' costs and profits, social benefits arising out of the operations of banks cannot be ignored. The author has also claimed that the profit maximization approach is out of place while referring to profitability of banks, and recognized that while filfilling the social responsibility, banks should try to make the developmental business as successfil as possible, reduce costs, improve banking system and increase the overall productivity. Ganesh K (197934, in his study on Monitoring profitability in banks has emphasized that the effectiveness of monitoring system depends upon profit plan, identification of profit centers, setting of standards for comparison and a proper management of information system. The author has concluded that the working funds, as base for the purpose of compmi~g rofitability at the branch level, was inadequate nd relating it to the total business (i,e., the sum of the td l deposits and total advances was more suitable. 36  Bbatia R.C. 1980y, in his Ph:D thesis entitled Bankiig structure and performance A case study of the Indian banking system , has attempted to describe and analyse the economic performance of the Indian'Banking system as it is reflected in output, price and profitability performance during the od of 195068. Surrogates were used to measure the output of the Indian Banking system. Weighlng scheme was devised to improve the accuracy of the output measurements. The price performance was analysed using the yield on financial instruments owned by the Indian Banking system. Profitability of the banking system was measured by the ratios of profits before twdcapital and profits before taxes/assets. Nayan, Kamal 198216, as suggested a model for evaluation of the performance of commercial banks. From his study he deduced the following conclusions; (i) the present system of ranking the banks on the basis of aggregate deposits fails to reflect their overall achievements; (ii) At the micro level, the existing system of performance budgeting has left much to be desired and thus cannot be objectively used for evaluation of branch level performance; (iii) On the basis of all the important and quantifiable parameters of performance, n integrated performance index needs to be developed, which will act as a model for evaluating the performance of commercial banks. Karkal G.L. 1982)', in his research work on Profit and profitability in banking , has examined the factors that determine the volume of profit and the technique wed in profit planning. It was suggested that some measures to improve the profitability in banks through increasing the margin between lending and borrowing rates and improving the productivity of staff. But the study did not touch upon the burden related issues. Varde et a1 (1983) , has edited the studies conducted by the National Institute of Bank Management on the profitability of commercial banks and has compiled them in a short book titled Profitability of commercial banks . The book covers different issues related to profitability of banks like profit management, productivity, profit planning in banks monitoring profitability of bank branches, measuring cost of fun s for banks, matching revenues and Cos of commercial banks and operating ost of rurrllbankhg.  Aogrdl V.B. and Devraj, Vd. 198319, n their papa they revealed that the difference in cost of working funds (deposits), interest earning, social banking, fund management, earnings from sour& other than interest, expansion of banking business, retail banking services, as the main factors contributing to difference in productivity and profitability ratios of the bank groups. The author concluded that in the prevailing circumstances, changes in interest rates on deposits and credit, have a decisive impact on earnings and expenses and, consequently, on the profitability of banks. Singh (1987)1°, stated that the profitability of the banking system has been subject to many exogenous factors, and the important ones are: continuous increase in the SLR CRR persistent emphasis on social goals, growing incidence of industrial sickness, rapid branch expansion in unbanked and under banked rural areas, unfavorable change in the deposit mix and growing incidence of financial disinter mediation. Chopra, Kiran (1987)11, in his research work, Managing profits, profitability and productivity in public sector banking , studied about the emerging trends in the profits and profitability of some select public sector banks at micro level. It highlighted the n& for the introduction of essential management technique for the better management of profits and profitability of public sector banks, Madhukar, RK (1988)12, in his paper on, Evaluation of performance of commercial banks-norms and techniques , identified six main parameters i.e., deposit growth, credit management, social banking, house keeping, customer service and profitability based on which banks performance is reviewed. Asha, P. (1988)13, in her study, Evaluation of Performance of Commercial Banks- Norms and Techniques , has touched upon various existing norms and techniques for assessing banks performance and provided information on group-wise performance of public sector banks in respect of selected indicators. Rno H.P. (1989)14, has made a comparison of business ratios, between the profit makmg and loss incuning rural branches of a nationalized bank for the year 1986. The author opined that the chief a for less profit is the low volume of business and suggested that monitoring the bmk-even business level for the banking sector is of gre t importance for nlpving profitability. 38
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