Commerce and Management

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Subject: search.filters.subject.Licensed commercial banks

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    The Impact of Capital Structure on Profitability of Banks in Sri Lanka: With Special Reference to Licensed Commercial Banks
    (Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Tharangani, D.L.M.; Wijesinghe, K.G.D.N.
    The concept of capital structure implies the way a firm finances its assets by the use of a mix of debt and equity. Capital structure decision is an essential one, because the profitability of an enterprise is directly affected by such a decision. This study aimed at contributing to the debate on capital structure by examining the impact of capital structure on profitability of licensed commercial banks in Sri Lanka for the period 2006 to 2015. Data was collected from panel data extracted from annual reports of Sri Lankan Commercial Banks and analyzed using Descriptive analysis, Correlation and Regression analysis. This study found that debt to equity ratio has significant negative relationship with Return on Assets, while debt to total funds ratio has significant positive relationship Return on Assets ratio. And debt to equity ratio has significant positive relationship with Return on Equity ratio, while debt to total funds ratio has significant negative relationship Return on Equity ratio. The outcomes of the study may guide banks, lenders and policy planners to establish better policy decisions of capital structure. Further, the study reinforces and refines the body of knowledge concerning to capital structure and profitability in Sri Lankan Banks.
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    The Impact of Credit Risk on Bank Profitability: With Special Reference to Sri Lankan Licensed Commercial Banks in Sri Lanka
    (Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Sampath, M.G.I.; Aruppla, W.D.N.
    Lending is one of the main incomes generating activity in commercial banks. Credit risk occurs in connection with lending. Among the different risks facing by banks risks, credit risk is considered as one of the major determinant of bank profitability because of the number and diversity of stakeholders affected. The objective of the study is to assess the impact of credit risk on profitability of licensed commercial banks in Sri Lanka for the period 2011 to 2015. Fifteen commercial banks were selected for the study and data was collected through published annual reports and using Eview Statistic Software & SPSS Software was performed Descriptive analysis, Correlation and Regression analysis. This study found that non-performing loan (NPL) ratio has a significant impact on Return on Assets (ROA) ratio, while total loan to total deposit (TLTD) ratio has no significant impact on Return on Assets (ROA) ratio. Furthermore, non-performing loan (NPL) ratio has significant positive impact on Return on Equity (ROE) ratio, while total loan to total deposit (TLTD) ratio has significant negative impact on Return on Equity (ROE) ratio. Findings of this study contribute to formulate efficient and effective credit risk management control policies for licensed commercial banks in Sri Lanka.
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    Impact of Bank-Specific and Macroeconomic Determinants on Commercial Bank Profitability: with Reference to Systematically Important Private Commercial Banks in Sri Lanka
    (Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Samarathunga, S.M.D.S.S.; Madurapperuma, M.W.
    Bank-specific and Macroeconomic factors have substantial repercussions on the performance of commercial banking sector in Sri Lanka, the favorable macroeconomic environment seems to stimulate higher profits. (Weerasainghe V.E.I.W & Perera T.R, 2013).The return on Assets which is a major measure of performance of commercial banks is a function of bankspecific determinants and macroeconomic determinants. A proper functioning of banking system facilitates a rapid economic growth enhancing savings and investments. The performance of the Sri Lankan commercial banks, measured by the Return on Assets (ROA) appeared to be stronger in the recent past without facing any significant fluctuations. This paper examined the impact of bank-specific and macroeconomic determinants on the profitability of licensed commercial banks. The study uses quarterly data from 2010-2015 relating to the bank-specific and macroeconomic indicators of commercial banking profitability by carrying out a multiple panel regression. According to empirical results, Macroeconomic determinants, gross domestic production rate and inflation rate found to be having a significant impact on the bank profitability with a positive relationship between the Return on Assets of a bank. The results further show that bank-specific factors of past period performance, net interest margin, bank size, liquidity risk, credit risk and capital adequacy have contributed significantly to the profitability of the commercial banks. The implication of the study is that efficient management of the bank-specific factors and implementation of favorable economic policies lead to an economic growth can contribute immensely to uplift the performance of the banking industry in Sri Lanka.
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    Perception of Relationship Marketing Orientation among Customers -Special Reference to Licensed Commercial Banks in Sri Lankan Context
    (2011) Dhanushanthini, Y.
    During the past years, the traditional transaction approach to marketing has been challenged and relationship marketing is suggested as a better option. It has changed the focus of marketing from short term orientation to a long term perspective and emphasis long-term, mutually beneficial relationships between buyers and sellers. Normally service organizations specially banking sectors are relationship oriented and mainly focus on customer retention. This research was carried out with the objectives of evaluating the existing relationship marketing orientation in both private and public Sri Lankan licensed commercial banks. Quantitative methodology has been applied and questionnaire was used to collect data.1000 household customers have been selected based on non probability sampling method. Findings revealed that relationship marketing orientation is existing in moderate level in licensed commercial banks, Sri Lanka.