A Study of Performance of Public and Private Sector Banks in India
DOI:
https://doi.org/10.55829/0jhbck29Keywords:
Non-Interest Income to Total Fund Ratio, Quick Ratio, Return on Assets, Return on Net Worth, Total Assets Turnover Ratio, Total Debts to Owners' FundAbstract
The banking industry plays a vital role in fostering balanced regional growth by ensuring the availability of financial resources and banking infrastructure across different parts of the country, including economically underdeveloped regions. It supports the primary sector by extending timely credit facilities to farmers and contributes to improving the quality of life by providing financial assistance for housing, consumer durables, electronic appliances, and other personal needs. Since the banking sector significantly influences the overall economic progress of the nation, evaluating its financial performance is essential. Strong banking performance contributes to economic stability and sustainable growth. In this context, the present study examines the financial performance of selected public and private sector banks operating in India over a five-year period from 2015–16 to 2019–20. The analysis compares the performance of these banks using six key financial indicators. The findings suggest that the financial performance of the selected public and private sector banks was significantly different across five of the six financial indicators examined. The only exception was the Return on Assets ratio, where both groups demonstrated similar performance.
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