Abstract:
An efficient banking system facilitates linkage between mobilization and use of resources, which accel erates
the process of economic growth. It is a widely accepted belief that a banking system which relies on a wide array of
banking products, is able to carry out this function because it increases the efficiency of a banking systems to a large
extent by offering a broader and flexible arrange of services to the benefits of both borrowers and investors.
Meanwhile, there are no comprehensive and empirical researches in that field especially in banking sector.
In an attempt to fill in this gap, the present study is conducted determinants of key performance indicators
(KPIs) of private sector banks in SriLanka with samples of hundred respondents in twelve branches in North and
Eastern Provinces. Data were collected through a five points Likert type summated ra ting scales of questionnaire from
strongly disagree (1) to strongly agree (5) were adopted to identify indicators. Sophisticated statistical model as
“Exploratory Factor Analysis” (EFA) has been used. The results show that eight factors extracted from the analysis
that together accounted 73.781% of the total variance. These factors were categorized as 1) Accident Ratio (AR); (2)
Opportunity Succession Rate (OSR); (3) Cash Flow (CF); (4) Return on Capital Employed (ROCE); (5) Customer
Satisfaction Rate (CSR); (6) Overall Equipment Effectiveness (OEE); (7) Return on Investment (ROI); (8) Internal
Promotion (IP).
