IDEAS home Printed from
   My bibliography  Save this article

Performance Evaluation of Public and Private Sector Banks in India - A Comparative Study


  • Dr. P. Maheshwari

    (Professor, Department of Management Studies, Adhiyamaan College of Engineering, Hosur(Tamil Nadu))


This research paper examines the financial performance evaluation of banking companies in India to examine and to understand how capital adequacy, assets quality, management efficiency, earning quality and liquidity position of banks plays a crucial role in the growth. The present study is mainly based on secondary data. The study concentrates on Indian Banking Industry. Thus the five public sector banks and five private sector banks are selected. The period of the study was ten years from 1999-2000 to 2008-09. Descriptive analysis of average score analysis and the measures of dispersion of Standard deviation and its coefficient of variation is used to evaluate the performance of select banks. Discriminant Function Analysis is used to find out how do Public sector bank differ from Private sector bank in the factors on influencing the profitability. This study which is principally aimed at the financial performance of select public sector and private sector banks in India has examined thoroughly with all the objectives formulated. The entire hypotheses proposed in this study have been examined with appropriate tools also. Based on the studies done in the sample public sector banks and private sector banks, they have to take all the efforts needed to stabilize their financial performances. The study shows, the top ranked bank among the Public sector banks is Bank of Baroda, which has undergone a significant facelift in recent years. Among the select private sector banks, the top ranked banks are KMB and HDFC.

Suggested Citation

  • Dr. P. Maheshwari, 2012. "Performance Evaluation of Public and Private Sector Banks in India - A Comparative Study," Journal of Commerce and Trade, Society for Advanced Management Studies, vol. 7(1), pages 82-89, April.
  • Handle: RePEc:jct:journl:v:7:y:2012:i:1:p:82-89

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Jacob A. Bikker & Haixia Hu, 2002. "Cyclical patterns in profits, provisioning and lending of banks and procyclicality of the new Basel capital requirements," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 55(221), pages 143-175.
    2. Sheeba Kapil & K N Kapil, 2005. "`CAEL’ Ratings and its Correlation to Pricing Stocks— An Analysis of Indian Banks," The IUP Journal of Bank Management, IUP Publications, vol. 0(1), pages 64-78, February.
    3. Biswajit Chatterjee & Ram Pratap Sinha, 2006. "Intermediation Cost Efficiency: A Tale of Two Bank Groups," The IUP Journal of Bank Management, IUP Publications, vol. 0(1), pages 7-38, February.
    4. Richard S. Barr & Kory A. Killgo & Thomas F. Siems & Sheri Zimmel, 1999. "Evaluating the productive efficiency and performance of U.S. commercial banks," Financial Industry Studies Working Paper 99-3, Federal Reserve Bank of Dallas.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Performance evaluation; public sector; banking industry; capital adequacy.;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jct:journl:v:7:y:2012:i:1:p:82-89. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dr. Himanshu Agarwal). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.