IMPACT OF MONETARY POLICY AND BANK-SPECIFICDETERMINANTS ON THE BANKS PROFITABILITY:EVIDENCE FROM INDIA

The presence of an effective banking sector is vital for every country because it creates an opportunity for development in the economic environment. This studyexamines the effect of monetary policy and bank-specific determinants on banks’ profitability. The result suggests that the interest rate has adversely effect on private bank’s profitability while public banks and foreign bank’s profitability did not affect. Some of the banks-specific variables have positive influence on the profitability of all types of banks while some of them have adverse impacts. Finally, we have discussed the most impacted variable which affects the banks’ profitability was non-performing assets.