Impact of Cost of Funds on Bank Profitability : Evidence from Scheduled Commercial Banks of India

The study examines the impact of the cost of fund (CoF) on theprofitability of scheduled commercial banks of India. The data of all banks weretaken from 2001 to 2020. The dependent variable is profitability and it isrepresented as Operating profit to Total Assets (OPTA), Net Interest Margin(NIM), Return on Assets (ROA), Return on Equity (ROE), and Return onInvestment (ROI) while the independent variable is CoF of a bank. The studyemploys the ordinary least square method to understand the effect of CoF on allprofitability parameters and finds a significant relationship between CoF and ROI.Empirical Economics Letters, 20 (Special Issue 1) (August 2021) ISSN 1681 8997