An evaluation of operational performance and efficiency of public sector banks in India:

Finance is the life blood of modern economy, therefore banking system is the linchpin of any development strategy. The banking system is assumed to be a fuel injection system that spurs economic efficiency by mobilizing savings and allocating them to high return investment and if the allocation of credit is judicious and socially equitable, it can help to achieve the twin objectives of inclusive growth and social justice.

Public Sector Banks being oldest and government policy oriented form major part of total banking system in India so there is a need to evaluate the performance of these banks and also to analyse the comparative financial performance of Nationalised Banks, SBI & Associate Banks and Public Sector Banks in India in terms of various selected parameters. Secondary data has been used collected from the various sources and reports such as RBI, Annual Report/Result of Banks, and Statistical tables relating to Banks in India.

It was found that the Public Sector Banks which successfully, withstood the global financial crisis in 2008–09, have now started showing some signs of stress as these banks grew at a slower pace during 2011–12 as compared with the previous years. The study also concludes that the SBI & Associate Banks remained more or less stable and also surpasses the Nationalised Bank in all the parameters during 2011–12.