Earning and Risk Taking of Commercial Banks in India

Financial sector is essential for the monetary development and prosperity of the country. It is the backbone of every economy as it helps to control money supply. A sound financial system is necessary for a healthy and vibrant economy. . In order to cope with the complexity and a mix of risk exposure to the banking system, it is of great importance to evaluate the overall performance of banks by implementing a regulatory banking supervision framework. It is necessary to know their earnings and risk-taking of banks and how they influences the CRAMEL indicators. (Capital Adequacy, Resource Deployed, Assets Quality, Management Efficiency, Earnings and Liquidity). Hence, the present study is ¿EARNINGS, RISK TAKING AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN INDIA¿ has been undertaken to study the financial health of various categories of bank. The study applied the following Model CRAMEL model and Jones model of Discretionary Accruals (DA) As Indian banks are moving towards modern banking changes and it has to adopt new technology in banking industry in order to fasten their business and beat the competitions.