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Financial institutions face today a fast paced, dynamic and a competitive environment at the global scale. Within such a competitive environment, financial institutions are forced to examine their performance because their survival in the dynamic economics of Twenty-first century will be dependent upon their productive efficiencies. This paper, therefore, examines determinants of profitability and productivity analyzes of State Bank of India and its Associates. Determents of profitability are analyzed using the techniques of ordinary least squares. Based on existing theories and relevant economist empirical works variables are selected. The variables occurring in the models and their measurement and their expected relationship with net profit are described. Two major ratio analyses i.e., branch ratio and employee ratios have been taken into account to assess the productivity in State Bank of India and its Associates. The study may be helpful to the banks with poor performance, to improve their performance.

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Dr.D. Guruswamy was born in 1974 at Chittoor District, Andhra Pradesh. He received his B.Com, M.Com and PhD degrees from Sri Venkateswara University, India. He was awarded PhD in the field of Finance in the year 2004. At present he is working as Assistant Professor, Department of Accounting and Finance, Mekelle University, Ethiopia.

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