Evaluating Debt Equity Ratio of Selected Public and Private Sector Banks between Prior and Post Demonetization in India

A K Srivastava; Pankaj Shah

doi:10.55524/ijirem.2025.12.2.6

Abstract

The Debt-Equity ratio is a financial statistic that measures the amount of money the organization has borrowed from outside sources compared to the money its owners have invested. This ratio is used to calculate how much fund was obtained through equity and how much was borrowed from other sources. Debt Equity Ratio is one of the solvency ratios. Solvency ratios are used to measure an institution's capacity to meet its long-term obligations. Generally, the lower the debt-equity ratio, the better the financial position of the institutions. Therefore, this research paper is an attempt to evaluate the solvency position of banks in the prior and post-demonetization phases and reveals the conclusion based on the tested hypothesis on t-test analysis that there is no significant difference in Debt Equity Ratio of selected public and private sector banks before and after demonetization. It also found that private-sector banks have better debt-to-equity ratios than public-sector banks.

Keywords

Debt Equity Ratio, Bank, Solvency, Demonetization .

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Cites this article as

A. K. Srivastava, P. Shah, "Evaluating Debt Equity Ratio of Selected Public and Private Sector Banks between Prior and Post Demonetization in India", International Journal of Innovative Research in Engineering & Management (IJIREM), Vol-12, Issue-2, Page No-36-38, 2025. Available from: https://doi.org/10.55524/ijirem.2025.12.2.6