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TECHNOLOGY ADOPTION AND BANK PROFITABILITY IN INDIA: EVIDENCE FROM RBI TRENDS AND PUBLIC RESEARCH

📘 Volume 14 📄 Issue 4 📅 April 2026

👤 Authors

Neena Pal 1
1. Research Scholar, Department of Applied Economics, Department of Applied Economics/Faculty of Commerce, Faculty of Commerce, University of Lucknow, Lucknow, India

📄 Abstract

This paper investigates the connection between technology use and bank profitability in India using data from Reserve Bank of India research publications, and publicly available academic papers. In this paper the review-based analytical methodology is supported with recent scheduled commercial bank data for 2020–2025. During this period, the Gross Non-performing Asset (GNPA) Ratio dropped from 3.62 % to 2.15 %, net earnings increased from ?224,937 crore to ?401,000 crore, and Return on Assets (RoA) improved from 1.25% to 1.37 %. According to the research that is currently available, technology-oriented banks typically achieve higher net interest margins, better labour productivity, and improved return on assets, but they also frequently incur higher intermediation costs due to ongoing investments in information technology, payments infrastructure, and security systems. This paper makes the case that structural channels including reduced marginal transaction costs, enhanced customer franchise, better underwriting and monitoring, and increased operating leverage are the primary ways that technology impacts profitability. It comes to the conclusion that technology should not be seen as a mere short-term earnings lever but rather as a strategic competency that enhances the sustainability and quality of profitability in Indian banking.

🏷️ Keywords

Technology Adoption; Bank Profitability; Digital Banking; Scheduled Commercial Banks; Return On Assets; Net Interest Margin; RBI

🔗 DOI

View DOI - (https://doi.org/10.36713/epra26968)

📚 How to Cite:

Neena Pal , TECHNOLOGY ADOPTION AND BANK PROFITABILITY IN INDIA: EVIDENCE FROM RBI TRENDS AND PUBLIC RESEARCH , Volume 14 , Issue 4, April 2026, EPRA International Journal of Economic and Business Review(JEBR) , DOI: https://doi.org/10.36713/epra26968

🔗 PDF URL

https://cdn.eprapublishing.org/article/202604-04-026968.pdf

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