Correlation Study of Financial Performance Indicators in Indian Public Sector Banks & Private Sector Banks

This study attempts to analyse the relationship between financial performance indicators (variables) ROA (Return on Assets) and Interest Income size to Bank size (Total Assets), Assets Management measured by Assets utilization ratio ( operational profit divided by total Assets), Operational Efficiency measured by the operating efficiency ratio ( total operating expenses divided by net interest income ). Also compares the various types of banks in Indian Banking industry i.e. PSB's (Public Sector Banks), Private Sector banks on the above measures to find out if there is any difference between PSB's and Private Bank's performance with reference to points like role of other incomes, credit deposit ratio. This study uses correlation analysis as a method to analyse relationship between independent and dependent variables and some banking ratios. Comparing PSB's with Private Banks will allow us to underline the difference in their performance. The study will help to show, how by concentrating on some parameters can enhance performance of a bank. Study will also provide base for further research in the domain of comparative analysis of financial performance of banks.