Performance of odisha's public sector banks and private sector banks: A comparative study

The Banking Sector Reforms were initiated in India as part of the overall structured reforms aimed at improving the productivity and efficiency of the economy. Odisha, one of the less developed states in India is situated in the southeast of India. The state is endowed with a vast area under forest, a long coastline and rich mineral deposits. The state has been struggling hard to achieve economic prosperity through its various plans and programmes. Agriculture is the mainstay of Odisha's economy and substance of the life of the people. At the same time efforts are being made to transform Odisha in to a vibrant industrialized state. The study about my state Odisha examines trend of NPAs, deposit mobilization, lending and overdue. The data has been analyzed by percentage method. The study is based on the secondary data retrieved from State Level Banking Committee. Private Sector Banks in Odisha has performed well in respect of reducing NPA during the period in 2002 to 2009. Private banks were not interested to open branches in Odisha. The reason is in an agricultural dominated area the people had hardly any surplus to deposit in banks. There has been a constant increase in total deposits of both Public and Private Sector Banks in Odisha,but the rate of increase is found to be more in urban areas. Although Private Sector Banks do not show uniform performance in respect of recovery of loans in every year but it has performed well in reducing NPA during this period.