A Study on the Effect of Bank Size and Operational Efficiency on Performance of Banks

Abstract

In this paper, Financial performance has been measured by using two indicators; Internal–based performance measured by Return on Assets, Market-based performance measured by Tobin’s Q model or P/B ratio. The study employed the correlation and multiple regression analysis of annual time series data from 2009-2013 to capture the impact of bank size, operational efficiency and Non performing asset on financial performance measured by the two indicators and to create a good-fit regression model to predict the future financial performance of the bank.