Profitability and Efficiency of Indian Banking (A Comparative Study of Selected Public and Private Sector Banks)

Banks played an un-denying relentless role in the banking system of modern India. It is not only commendable but also adorable. The efficiency of the banks is crucial for the existence of smooth flow of trade locally and internationally. It is expected that Banking institution should earn profit but also maintain reasonable level of efficiency. Profitability of banks is dependents on several variables in which efficiency is most important. In this study efforts have been made to judge profitability and efficiency of selected leading public sector and private sector bank. Profitability and efficiency of selected public and private sector banks analyzed on the basis of some important financial ratios. The current study is mainly concerned with analysis of comparative performance selected public sector and private sector banks. The results have found strong evidence that the Private Sector Banks proved their better performance on the parameters of profitability and efficiency selected for the study.