This paper attempts to analyze the performance of commercial banks after financial reforms. To compare the performance of public sector, private sector and foreign banks selective indicators were taken into considerations. These Indicators were; Share in aggregate deposits of various banks, Distribution of Branches region wise, Share of various banks in financial indicators like net profit, gross profit etc, non performing assets and capital adequacy ratio. From the analysis it was concluded that share of private sector banks in aggregate deposit was increasing and share of public sector banks were maximum in aggregate deposits.whereas SBI group was having maximum branches in rural areas. All the banks have shown decline in NPA's where increase has been depicted in Capital Adequacy Ratio. Before liberalization there was a monopoly of public sector banks, but after reforms in 1991, the entry of many foreign players have been permitted. Post liberalization demand PSBs to compete with well diversified and resource rich foreign banks and to provide better services and unique products to suit customers need. Public sector banks have already sacrificed a lot of their profits for achievement of social objectives. Due to cut throat competition and technology, the public sector banks are thinking to improve productivity and profitability which is essential to survive in a globalised economy. All these require inner strength and control over costs, new techniques of managing various branches, motivating people, proper consideration for innovation, better system and procedures, fixing adequate and reasonable norms and creation of team spirit in bank management.
Public Sector Banks (PSBs), Private Sector Banks, Non erforming assets (NPAs)
