The Effect of Digital Banking on Financial Pe...

The Effect of Digital Banking on Financial Performance: A Study of Select Public Sector Banks in India

Author Name : Bipanchee Goswami, Dr. Jutimala Bora

DOI: https://doi.org/10.56025/IJARESM.2024.1211241536

This study focused on the impact of digital banking on the financial performance of select public sector banks in India. The shift from traditional to digital banking, accelerated by the 2016 demonetization, has led to increased adoption of services like NEFT, RTGS, and mobile banking. For the study, four PSU banks are considered. The data were collected fron the official website of RBI and for analysis correlation matrix and regression are used.The study found that digital channels have improved efficiency and profitability, while traditional services like ATM and POS show weaker profitability due to higher operational costs. The analysis reveals strong correlations between digital banking transactions and profitability, with RTGS and mobile banking significantly driving profitability, while ATM and POS contribute less. The findings emphasize the importance of digital banking in enhancing financial performance.