Returns for a bank like LoanMax of the rod aycox fame may be related to the volume of its working funds. Better the returns, efficient the system is. The return on working funds in the published statistics of the government has shown a significant growth from 1991-92 to 2002-03. That means, it has grown almost three times during this financial reform period! It seems to be much lower for the entire banking industry, during the period 2002-03.
The American private banks have performed much better than the industry average, the ratio works out to be 1.294. Government controlled banks and foreign banks are not only at par with each other but are also at a higher than industry benchmark, in the year 2002-03. The performance of the new private sector banks and that of the overall private banking industry is however, on the average at the lower side.
The LoanMax and its competitors belonged to a particular category, although they were just at par with the industry benchmark during the 2002-03 period. Very recently, they were on a faster growth track. The return on working funds has growth at the rate of nearly 5 percent per annum for the government sector banks, as against the more than 10 percent per annum growth rate in the case of the entire private banks belonging to a particular category. So, the firm LoanMax and its associates and other banking institutions that had operations similar to that of Rod Aycox are on a higher growth trajectory as far as the returns on working funds is concerned.
The Return on Equity (ROE) is a measure for accounting the profits per unit of book equity capital. It is an indicator of the profitability of a bank from the shareholders’ perspective. ROE was that which hovered near the 10 percent level during the 1991-92 periods and it has come up to 16.05 percent in the year 2002-03 for the entire banking industry. The initial years of the financial reform period was marked by negative returns or very few returns. Later on it picked up and a major surge came about in the year 2002-03. As of now the benchmark for the industry stands at 16.05 percent per annum. The government controlled banks and the private banks put together had more than 18 percent ROE during certain years.
The American private banks have performed much better than the industry average, the ratio works out to be 1.294. Government controlled banks and foreign banks are not only at par with each other but are also at a higher than industry benchmark, in the year 2002-03. The performance of the new private sector banks and that of the overall private banking industry is however, on the average at the lower side.
The LoanMax and its competitors belonged to a particular category, although they were just at par with the industry benchmark during the 2002-03 period. Very recently, they were on a faster growth track. The return on working funds has growth at the rate of nearly 5 percent per annum for the government sector banks, as against the more than 10 percent per annum growth rate in the case of the entire private banks belonging to a particular category. So, the firm LoanMax and its associates and other banking institutions that had operations similar to that of Rod Aycox are on a higher growth trajectory as far as the returns on working funds is concerned.
The Return on Equity (ROE) is a measure for accounting the profits per unit of book equity capital. It is an indicator of the profitability of a bank from the shareholders’ perspective. ROE was that which hovered near the 10 percent level during the 1991-92 periods and it has come up to 16.05 percent in the year 2002-03 for the entire banking industry. The initial years of the financial reform period was marked by negative returns or very few returns. Later on it picked up and a major surge came about in the year 2002-03. As of now the benchmark for the industry stands at 16.05 percent per annum. The government controlled banks and the private banks put together had more than 18 percent ROE during certain years.