A Study On The Comparison Of Financial Performance Of Public Sector Banks With Special Reference To State Bank Of India And Punjab National Bank

The banking system of India is featured by a large network of bank branches, serving many kinds of financial services of the people. There are currently 27 public sector banks in India out of which 19 are nationalised banks and 6 are SBI and its associate banks, and rest two are IDBI Bank and BharatiyaMahila Bank, which are categorized as other public sector banks. There are total 93 commercial banks in India. The purpose of this study is to compare the financial performance of two leading public sector banks of India i.e. State Bank of India and Punjab National Bank. Quantitative analysis was undertaken by looking at various sets of financial ratios that are routinely used to measure bank performance. The State Bank of India, popularly known as SBI is one of the leading bank of public sector in India. SBI has 14 Local Head Offices, 57 Zonal Offices and more than 13500 branch offices located at important cities throughout the country. On the other hand Punjab National Bank Founded in 1894, the bank has over 6,968 branches and over 9,656 ATMs across the country. The period of study taken is from the year 2007-08 to 2011-12. The main ratios that were employed put a particular focus on the banks liquidity, profitability, management capacity, capital structure and share performance as reliable indicators of a bank performance. Conclusions were then drawn from the computation of the relevant ratios that allowed the author to make an effective comparison of said banks. Key words: Credit Deposit Ratio, PNB, Net Profit Margin, Net worth Ratio, Financial Analysis, SBI Policy