A Comparative Analysis of the Business Performance of Selected Public and Private Sector Banks in India

The Reserve Bank of India (RBI) claims that the banking industry in India is adequately funded and well-regulated. The nation has significantly better financial and social conditions than any other nation in the world (Trivedi, A. K. (2002). ‘Economic Reforms and Banking Scenario: An Analysis’, Indian economic panorama, A quarterly journal of agriculture, industry, trade and commerce, special banking issue (pp. 6–8).). This paper has been articulated based on the descriptive method of research with secondary data sources. Data has been collected from various government bank reports and private bank reports in their respective web portals. The collected data pertaining to the performance of both government and private sector banks are tabulated for interpretation. The overall gross NPA of the banking sector has declined significantly due to various tight policies of the finance ministry and Reserve Bank of India. It is identified that banking performance is determined by its performing and non-performing assets. In this study, the business performance of the selected banks such as State Bank of India, Bank of Baroda, and Indian Bank has been considered for the comparative analysis with certain selected private banks. The SBI has its NPA accounts recorded as 3,593,597, BOB with 683,257 accounts and the IB with 950,114 accounts. Among the selected private banks, HDFC Bank Limited has the highest NPA accounts with 1,301,624, the Axis Bank with 577,952, and Kotak Mahindra Bank with 269,807 accounts. On the whole, the private sector banks are performing well as compared to public sector banks in terms of controlling their NPA rates in recent years.