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

Abstract

The significance of banking institutions is growing steadily, as people seek secure and reliable places to safeguard their money. The credibility and reputation of a bank play a crucial role in influencing customer demand. With the advent of bank privatization, the growth of public sector banks has slowed down. At present, the Reserve Bank of India (RBI) regulates the entire Indian banking industry, and all banks are required to comply with its guidelines and recommendations.

For this study, the researcher selected three banks as a sample, covering a period of three years. Using balance sheet data, the financial performance of these banks was analysed and compared. The findings reveal that Punjab and Sind Bank demonstrates stronger profitability compared to the other two banks. The study suggests that Bank of Maharashtra should expand its business network in order to achieve growth similar to Punjab and Sind Bank, while Jammu and Kashmir Bank needs to reduce miscellaneous expenses and focus on capturing a larger market share.