A Comparative Study on Financial Performance and Growth of Selected Public Sector And Priavate Sector Banks in India

Abstract

Evaluation of Indian banking industry is not easy task especially when There has been newlinehappened reforming of the role of the banks, emergence of new private sector banks, newlinerestructuring of public sector banks and competition from foreign banks in the past newlinedecade. There are many factors , which are essential to be taken in to consideration newlinewhile evaluating performance of a bank as good or bad because not only depositors newlinebut investors, mangers, shareholders, creditors and tax authorities also interested and newlineinfluenced by financial soundness and performance of the banks. Financial newlineperformance analysis is the process of identifying the financial strengths and newlineweaknesses of the firm by properly establishing the relationship between the items of newlinebalance sheet and profit and loss account and measure the financial position of each newlinebank. The present study has made an attempt to evacuate comparative analysis of newlinegrowth and financial performance of five public sector and five private sector banks in newlineIndia for the period of 13 years from 2005-06 to 2017-18. Growth performance of newlineeach bank has been analyzed in details in terms of mobilization of deposits, newlineborrowings, loans and advances and investment position. Financial performance of newlineeach bank has been analyzed with the help of different parameters of world renowned newlineCAMELS Model. Comparative analysis of performance has been done by using newlinedifferent statistical tools by using SPSS. Both the private sector banks and public newlinesector banks have phenomenal growth and also faced significant challenges during the newlineperiod of the study. On the basis of results under the parameters of the CAMELS newlineModel it concluded that performance of private sector banks is better than public newlinesector banks and banks are required to improve capital adequacy, strengthen asset newlinequality, enhance management, increase earnings and maintain sufficient liquidity to newlinehedge different financial risks. newline