Asian Journal of Research in Social Sciences and Humanities
  • Year: 2016
  • Volume: 6
  • Issue: 6

Public Sector Banks to be Defeated by Private Sectors Peers-An Indian Consequence

*Assistant Professor and Head, Department of Management Studies, MPNMJ Engineering College, Chennimalai, Erode, Tamilnadu, India

**Associate Professor and Head, Department of Management Studies, Anna University, Regional Centre, Coimbatore, Tamilnadu, India

Online published on 1 June, 2016.

Abstract

In this paper we make an effort to comparison of financial performance of private sector banks and public sector bank of India during the period from 2010 to 2015. The key aspects are considered here are Bank Networks, Non-Performing Assets (NPA), growth and Net Profit. The public sector banks has huge branch network compare to private sector bank for generates retail deposits, even though the cost of funds for these banks is higher than their private sector peers. Operating profit is an ideal measure to judge a bank's wellbeing as it reflects its core capability. In the years 2015 the operating profit of public sector bank is more compare to private sector bank but while considering the Net profit the private bank is leading. The public sectors bank NPA is significantly increasing from the past five years has directly impacts its net profits.

Keywords

Public Sector Banks, NPAs, Operating Profit, Networking, Private Sector Banks