Performance of Public and Private Sector Banks in India

Abstract
The banking sector has become the foundation of modern economic development of a country. The effect of LPG in the financial sector in India is exposing Indian banks to a new economic environment that is characterized by increased competition and new regulatory requirements. So there is a need to examine the strengths and weaknesses of the banking sector. The public and private sector banks are very important segments of the banking sector in India. The present study is a comparative study of public and private sector banks for three years from the year 2011 to 2013. The study is based on secondary data. Both the banks have been compared based on seven parameters. i.e. Branch expansion, advances, borrowings, profitability, deposits, non-performing assets, income, and investments. Overall, it may be concluded that public sector banks even have a dominant position in several branches all over India but still face competition from private sector banks because the public sector banks are required to work in rural areas, resulting in high per unit transaction costs. So, they should adopt advancements in technology to overcome the reduction of costs in rural branches.

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