Performance evaluation of public sector banks in india

This paper attempts to analyze the financial performance of public sector banks in India. Public sector banks form major part of total banking system in India so there is a need to evaluate the performance of these banks. The study is based upon secondary data covering the period from 1997-2007. For analyzing the performance Compound Annual Growth rate and Coefficient of Variation of advances, deposits, total assets, return on assets, and return on equity and spread ratio are calculated. Decline in growth of non performing assets ratio is also considered for this evaluation. It is concluded the CAGR of various variables have shown variation s from bank to bank. State Bank of Indore has shown maximum CAGR in case of total advances, total deposits and total assets. Punjab & Sind Bank has shown least growth of deposits and advances and State Bank of India has least growth of deposits. CAGR of return on equity and return on assets was at peak of United Bank of India whereas Dena Bank, Punjab& Sind Bank and Indian Bank have shown negative trend in these ratios. Decline of NPA's ratio was highest in case of State Bank of Hyderabad and least in case of Dena Bank.