IMPACT OF PRE AND POST BASEL III NORMS ON PROFITABILITY OF PUBLIC SECTOR BANKS IN INDIA
The new Basel III ROA and ROE Ratio standard which encourages banks to maintain a diversified pool of high-quality profitability against their long term expected returns on assets and shareholders it appears to be noble from a theoretic perspective it may weigh down banks performance as these ratios ensure company wealth. It is against this background that this study sought to evaluate the impact of the new Basel III regulations on the profitability of banks in emerging market economies. A sample of 10 public sector banks over the period of 10-year between 2010 and 2019.This analysis analyzed the competitiveness of banks in the public sector and the effect on competitiveness of the introduction of Basel III capital criteria. As all banks report low ROA and ROE during the post-Basel III era, it is inferred from the results that Indian public sector banks are not financially stronger and more secure. This indicates that since Basel III capital standards were implemented, the financial management of the banks has deteriorated.
ROA, ROE, Basel Regulations, Financial management