The paper examines comparative performance of public sector banks and private sector banks for a period of four years from 2007–08 to 2010–11 on the basis of certain key parameters — like Business per employee, Profit per employee, Return on assets and operating expenses as a percentage of total expenses, Credit deposit ratio, Spread as a percentage of assets, Net NPA to net advances and the capital adequacy ratio. The period had a significant impact on not only Indian economy but the world economy. This was the most volatile period of time as the whole world economy faced difficult time. As the banking system is one of most significant parts of our financial system, its performance has a significant impact on the entire economy. In this context, it becomes very relevant to examine and compare the performance of two important categories of banking system in India.
