Beruflich Dokumente
Kultur Dokumente
DEPARTMENT OF ECONOMICS
FACULTY OF SOCIAL SCIENCE
AGRA
CONTENTS
1.1 Introduction
1.4 Objectives
1.7 Limitations
1.1 INTRODUCTION
A good bank is not only the financial heart of the community, but also one with an
development of every nation. They have control over a large part of the supply of
money in circulation. Through their influence over the volume of bank money,
they can influence in nature and character of production in any country. Economic
development is a dynamic and continuous process. Banks are the main stay of
depends upon the extent of mobilization of resources and investment and on the
and Agriculture) of the economy. Thus, in the modern economy, banks have
The banking sector is that the principal constituent of the financial system, that is
Indian banking industry is split into following categories-(a) public sector banks
government holds a major portion of the shares. Say for example, SBI is
public sector bank, the government holding in this bank is 58.60%.
Post-liberalisation in the 1990s, banks such as ICICI, HDFC which got the
license are the new age Private sector banks. They owing to their improved
service offerings give a tough competition to the players in the public sector.
Of the total banking industry in India, Public sector banks constitute 72.9%
share while the rest is covered by private players. In terms of the number of
banks, there are 27 public sector banks whereas 22 private sector banks.
Nowadays both the categories of banks are doing good in the sector by
competition can be seen between the public sector and private sector banks.
sector, due to the ruthless competition, people have to think more than 100
times, before coming down to any one of the two. However, every
individual has certain priorities, and one can easily choose between the two,
by scheduling down their preferences and going for the one, that suits
measuring financial performance of banks. But time period also play a vital role in
select in 1990 or before must be different than that of the parameters we would
Uppal and Amit (2012) compared the growth balance sheet of all Indian
scheduled commercial banks for the time period of 2008-2011. The study is
concerned with banking industry as a whole and it is further divided into four parts
namely public sector banks, old private sector banks, new private sector banks and
foreign banks. The study takes into consideration each and every parameter of the
balance sheet of these four bank groups. The study concluded that public sector
banks and foreign banks are performing better on both sides of the balance sheet as
compared to the other two bank groups. The study pointed out that the
performance of old private sector banks is most disappointing among the four bank
groups.
sector banks’ asset by camel model and applying the tests like Anova, f test and
arithmetic test for the data collected for the year 2007-2011. They concluded that
the top two performing banks are bank of Baroda and Andhra bank because of
high capital adequacy and asset quality and the worst performer is united bank of
India because of management ine ciency, low capital adequacy and poor assets
and earning quality. Central bank of India is at last position followed by UCO bank
Vasant Desai, (2013): The performance of a bank can be assessed in there broad
resources that a branch has are manpower, premises, planning, system procedure,
would be measured by the extent which it has balanced between three parameters
Gajera&Pithadia (2013) in their article titled “A Comparative Financial Analysis
compare the financial performance of private, public and foreign sector banks.
banks in India. The study covers 14 public sector and 3 private sector banks under
the CAMELS model for the period from 2000- 2011. The study found that the
Andhra Bank secured the first place followed by Corporation Bank and HDFC
Bank. Axis Bank and ICICI Bank were ranked 6th and 14th respectively. Central
Bank of India stood last in the overall performance and SBI (largest public sector
bank) exhibited better performance than ICICI Bank (largest private sector bank)
Traditional banks vis a vis Modern banks for the period from 2005-2011. The
study classified SBI group, nationalised group and old private sector banks group
as traditional banks and new private sector banks and foreign banks as modern
banks. A total number of 12 ratios have been selected with a minimum of three and
maximum of five in each category to examine the extent of gap between the
modern and traditional banks. The study concludes that the gap between the
modern and traditional banks significantly reduced during the study period.
GarimaChoudhary (2014): used network of banks, productivity of banks, capital
The study related that private sector banks have expanded faster than public sector
banks. The capital adequacy of new private sector banks is above RBI minimum
requirements. However the assets base of public sector banks raise faster than
and development, has been recognized since long. This calls for a system that first
measures and evaluates the performance, and then brings out the strengths and
the financial parameters such asas capital adequacy ratios, debt coverage
comparative analysis between public and private sector can be made. This will help
the banking industry for the improvement or change in their business model.
1.4 OBJECTIVES
To recognize the parameters in which public and private sector banks are
performing.
The study is based on secondary data that will be collected from annual reports of
the respective banks along with magazines, journals, documents and other
Tenure of the Study: The present study covers five years period ranging from
2013-14 to 2017-2018.
Only quantitative aspect has been taken into consideration for analyzing
financialperformance of banks.