Performance Evaluation of Banking Sector in India

The reforms of 1991 and 1998 have helped improve the performance, profitability and efficiency of the Indian banking system. Prior studies have shown the effectiveness of the reforms on Indian banks in helping improve total factor productivity, efficiency and profitability among other things. Much less has been done to examine how the banking industry of India has fared compared to other countries in recent years. In addition, there is insufficient published research on the performance of the public and private banks in the wake of the financial crisis, which is a true litmus test. The purpose of this paper is to analyze the growth of the banking sector of India, from 2011–2015. The analysis is conducted in two parts: (a) examination of the performance of consolidated operations of private and public banks in India in the last ten years and (b) comparison of the performance of the Indian banking sector share price performance to the banking sectors and overall market indices of other developed and developing countries over the last 2011–2015.