AN EXAMINATION OF THE RELATIONSHIP BETWEEN SPREAD AND BURDEN IN DETERMINING THE FINANCIAL EFFICIENCY: A STUDY OF NEW GENERATION PRIVATE BANKS IN INDIA

The aim of this paper is to find out the financial efficiency of new generation private banks operating in India during the period 2007-08 to 2016 -17. A Regression analysis is used to find out how the independent variables are supporting dependent variables. The study also aims in predicting how spread and burden of banks are influencing its financial decisions. It is observed that The variables like Spread to working fund, Spread to total income, Burden to total income, burden to working fund, Non-interest income to working fund, Interest expended to total income are positively correlated with net interest margin