A comparative study of profitability between state group of banks and other nationalized banks in India

Banks mostly engage in the money transactions including accepting deposits from the customers and lending them to the needy ones in the form of loans. Major changes took place in the functioning of Banks in India only after liberalization, globalization and privatization. Increased competition, new information technologies and thereby declining processing costs, the erosion of product and geographic boundaries, and less restrictive governmental regulations have all played a major role for Public Sector Banks in India to forcefully compete with Private and Foreign Banks. Public sector Banks in India involves State banks of group and Other Nationalized Banks. This paper attempts the comparative study of profitability of both groups of public sector banks in India. Profitability of banks represents by Return on assets and return on investment. We have used statistical tools for projection of trend.