A study of the top public sector banks in India: A comparative analysis of the financial performance of state bank of India and Punjab National Bank

Indian Banking system had played an important role in the economic growth of India. RBI is the main authority of public sector banks, private banks, financial and non-financial institutions. Banking system is classified into scheduled bank and non-scheduled bank. The banking system of India consists of a large network of bank branches across the country which serves the people by providing various kinds of financial services. State Bank of India, popularly known as SBI is the largest bank of public sector in India. SBI has 420 million customers, more than 24, 000 branches and 59, 000 ATMs in India. Punjab National Bank, also known as PNB is second largest public sector in India. The Bank has over 80 million customers, 6, 937 branches and 10, 681 ATMs in India. The purpose of the study is to examine the financial performance of the two largest public sector banks in India, SBI and PNB. The research is descriptive and analytical in nature. The data used for the study was entirely secondary in nature. The present study is conducted to compare the financial performance of SBI and PNB Bank on the basis of ratios such as credit deposit, net profit margin etc. The period of study taken is from the year 2012–13 to 2016–17. The study found that SBI is performing well and financially sound than PNB Bank but in context of expenditure PNB bank has better managing efficiency than SBI.