A COMPARATIVE STUDY ON THE PERFORMANCE OF SELECTED PUBLIC AND PRIVATE SECTOR BANKS

Abstract

The project on comparative study on the performance of Public and Private Sector Banks has been a good experience. Efficiency and profitability of the banking sector in India has assumed primal importance due to intense competition, greater customer demands and changing banking reforms. Since competition cannot be observed directly, various indirect measures in the form of simple indicators on complex models have been devised and used both in theory and in practice. The study attempts to measure the relative performance of Indian Banks. For this study, I have used public sector banks (SBI, PNB, BOB) and private sector banks (ICICI, HDFC, AXIS). Segmentation of the banking sector in India was done on bank assets size. Overall, the analysis supports the conclusion that new banks are more efficient than old one. The public sector banks are not as profitable as other sectors are. It means that efficiency and profitability are interrelated. The key to increase performance depends upon ROA, ROE and NPM. The project starts with the objective of the study and methodology. Most of the researcher found that degree of efficiency of the bank largely determines the success or failure of overall operations of any bank. The project is a sincere effort to study and analyze the performance of the selected banks. The project focused on making the financial overview of the banks by conducting performance analysis for the year 2014 to 2019 and ratios and various components of efficiency analysis of banks. Analysis of the data is presented in the chapter four. It contains descriptive and comparative analysis of different years and correlation between the profitability and performance ratios. Finally findings and conclusion chapters includes a summary of the result found in the analysis portion.