An Evaluation of the Profitability of Indian Commercial Banks (A Case Study of Top Public and Private Sector Banks)
Keywords:
Net Interest Margin, Return on Assets, Public Sector Banks, Operating Ratio, Banking efficiency, Private Sector BanksAbstract
Since the introduction of New Economic policy in 1991, private sector banks have shown a remarkable presence in the banking space of India. These banks are became an natural part of this fastest growing service sector. Now these banks are giving a challenge to well establish and trustworthy public sector banks of India. Both types of banks have their own merits and demerits but they are working with an aim of wealth creation and economic development of the country. This paper is an attempt to compare the recent financial profitability of these banks by taking the data of top ten public and private sector banks as a suitable sample. To measure the profitability of these banks, various accounting ratios are used along with their proper analysis and interpretation. With the help of financial statements of these banks, this paper also focuses on finding the variation between the profitability of public and private sector banks.
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