Academy of Marketing Studies Journal (Print ISSN: 1095-6298; Online ISSN: 1528-2678)


The Performance of Banking Sector In Post Reform Era In India

Author(s): Roop Lal Sharma, Sandeep Bhougal, Ajay Kumar Sharma

The study evaluates the comparative performance of (Public Sector Banks)PSBs with respect to (Private Sector Banks ) PvSBs, over the period 2000-01 to 2012-13. The five financial ratios are used and the analysis of relative performance of PSBs and PvSBs is done with the application of t-statistic and comparing the means of respective banks group. When the performance of PSBs is analysed relative to PvSBs, the difference is significant between two groups and PSBs are doing better on only two parameters i.e., Net Interest Income (NII)/Total Assets (TA) and Provision & Contingencies (P&C)/Total Assets (TA). However, in the rest of the three parameters viz. Intermediation Cost (Int. cost)/Total Asset (TA), Non-Performing Asset (NPA)/Total Asset (TA) and Net Profit (NP)/Total Asset (TA), PvSBs perform better, The performance of PvSBs is better than that of PSBs as can be concluded on the basis of initial stage of analysis. But after the last part of analysis is done, it can be concluded that the performance of PSBs during post reform era is not inferior as is often heard in public discourse, instead it is fair to suggest that PSBs are catching up with PvSBs when an appropriate comparison is attempted.

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