TECHNOLOGY AND ITS IMPACT ON THE PROFITABILITY WITH REFERENCE TO INDIAN BANKS

In the present changing scenario, the banking industry has heavily invested in information and communication technology. With the increase in investment in innovative technologies, the challenge related to misbalance in a bank’s business operations and its reputation has been raised Therefore, it’s requisite for banks to outlay technology in a way to assure productivity of banks. The present study explores the impact of technology on public and private sector banks in India. Using the variables (Net Interest Margin; Return on Assets; Cost of Deposit; Return on Investment and Credit Deposits Ratio) of six public and private sector banks for the last ten years between 2012-2021, the study finds that investment in technology has resulted in enhancement of profitability of public sector banks. The study is carried out using SPSS Software. The research findings provide insight to the bank management to pay more attention to the employment of innovative technologies to ensure greater efficiency and improved performance.