Abstract
The Indian banking sector has undergone several transformational shifts driven by digital advancements that have enhanced operational efficiency and profitability. By redefining conventional business frameworks, digital transformation is playing a crucial role in steering banks toward more sustainable, technology-driven financial ecosystems. This study explores how the growing adoption of digital technologies is influencing the financial performance and overall efficiency of Indian commercial banks. With the rise of automation, internet banking, advanced data analytics, and secure digital platforms, banks are rethinking their operational models and financial strategies. Focusing on key indicators such as Net Profit Margin (NPM), Return on Assets (ROA), and the Cost-to-Income (CI) ratio, this research evaluates how digital tools are helping banks improve profitability and better manage liquidity in a rapidly evolving financial landscape. A mixed-method approach combining secondary data analysis from leading Indian banks (2016–2024) and qualitative insights through expert interviews was employed. The results indicate that digital transformation is crucial for Indian commercial banks in driving higher profitability, enhancing customer service quality, and reducing operational costs. It also aligns with broader Sustainable Development Goals (SDGs) such as resource optimization and financial inclusion. The study proposes strategic policy recommendations and a digital roadmap for banks to achieve both financial and sustainable objectives under the Viksit Bharat 2047 vision.
Keywords
- digital transformation
- Indian commercial banks
- profitability
- operational efficiency
- sustainable development
How to cite
Scott, S. V., Van Reenen, J., & Zachariadis, M. (2017). The long-term effect of digital innovation on bank performance: An empirical study of SWIFT adoption in financial services. Research Policy, 46(5), 984–1004. https://doi.org/10.1016/j.respol.2017.03.010
References (2)
- 1.Neeraj VermaDepartment of Commerce, I. P. (P.G.) College, Bulandshahr, Uttar Pradesh, IndiaEmail: scholornidhisingh@gmail.com
- 2.Dr. Arvind KumarDepartment of Commerce, I. P. (P.G.) College, Bulandshahr, Uttar Pradesh, India