A Comparative Study of the Performance of Sel...

A Comparative Study of the Performance of Selected Public and Private Sector Banks in India

Author Name : Dr. Sandeep Kaur

ABSTRACT

Banks are the most powerful and active players in financial markets. Banks mobilizing the idle saving of the people and channelizing them to those important productive purposes which are essential for the economic development of the economy. The main objective of this paper is to compare the financial performance of the selected top five public and private sector banks in India according to their market capitalization. Public sector banks are those banks whose complete or maximum ownership lies with the government and those banks whose majority stake is held by private shareholders and entities are known as private banks. The data used in this study is based on secondary data which covers the five year time periods from 2014-15 to 2018-19. To compare the financial performance of the public and private sector banks some parameters has used like total income, net interest income, net profit and return on assets. To analyze the data T-test, mean and graphs are used. It is concluded that public sector banks are lagging in many financial parameters and consequently facing many challenges. In a nutshell, public sector banks need to upgrade their strategies and their net worth ratio to lure the stakeholders.

Keywords: Financial Performance, Interest Income, Net Profit, Return on Assets, Private Sector Banks, Public Sector Banks,