Abstract
Efficiency and profitability of the banking sector in India has assumed primal importance due to intense competition, greater customer demands and changing banking reforms. This study attempts to measure the relative performance of Indian banks. The performance of the banking sector is more closely linked to the economy than perhaps that of any other sector. The growth of the Indian economy is estimated to have slowed down significantly. The study observed that the credit growth in India has seen a declining trend over the last three years due to decline in economic activity leading to moderation in industrial output, leveraged corporate balance sheets and low capital expenditure (CAPEX) plans resulting in decline in credit demand and asset quality overhang making
banks cautious in lending. It found that the key to increase profitability is increase productivity. For this we have recommended some suggestions to tackle the challenges faced by the banks particularly public sector banks.
Keywords: Performance, Profitability, Public
sector Banks, NPA etc.
References
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