Financial Performance Analysis of Selected Public Sector and Private Sector Banks of India

Jagruti N. Pritmani1; Dr. R.K. Patel2
1 Research scholar, School of Commerce, Gujarat University, Ahmedabad, Gujarat

e-mail: jagrutipritmani@gmail.com

2 Research Guide; Head of Accountancy Department, Desai C.M. Arts and Commerce

College, Viramgam-382150

e-mail: rkpdcm@gmail.com

ABSTRACT

Banks are the lifeline of the economy of a country. The smooth flow and growth of the economy depend upon the performance of the banks as a whole. The efficiency and performance of the banks are the key factors which enable the growth of the country. This study aims to analyze the financial performance of the selected public sector banks and private sector banks for the period of 10 years from 2015-16 to 2024-25 using the ratios, descriptive statistics and independent t-test. As this period of ten years experienced the major changes in the banking sector right from the enactment of certain Acts to the mergers of the banks and also the challenges posed by the pandemic Covid-19, this study tries to analyze how the banks responded to the challenges in a decade. The study found that the soundness and profitability of private sector banks is better as compared to that of public sector banks whereas public sector banks could manage its liquidity better that private sector banks.

Keywords: Financial performance; Capital adequacy ratio (CAR); Net interest margin (NIM); Cash deposit ratio (CDR)