Operational analysis of selected public sector banks - A study

The operational performance in commercial banks can be evaluated by using a measure, i.e., operating profit, spread, burden, net profit, and average and growth rate is taken for the present study. The information on operational performance is useful to the management for planning, decision making and control. This will enable the management to exercise control over the day to day operations with a view to ensuring maximum efficiency and adherence to the plans of management. Operating profit is the excess of operating income over operating cost. This paper an attempts to analyze the operational performance analysis of selected public sector banks a study during the period from 2005-06 to 2014-2015. The study is diagnostic and exploratory in nature and makes use of secondary data. The study finds and concludes that the operating profit, Total income, Interest income and other income of Andhra Bank is improved when compare to State of Hyderabad but Net profit of State Bank of Hyderabad is more than that of Andhra Bank during the study period. The reason for net profit of Andhra Bank is reduced may be interest expended is more than the interest received when compared to the State Bank of Hyderabad.