“Profitability Analysis of Public Sector and Private Sector Banks in India”

Abstract

Security & Profitability are major dynamics that individuals seek while depositing money in a bank. Capital in banking system is the foundation of economic development of country. If a specific country had been stimulated due to various risk, inflation of money, financial crisis, imbalance of economy development, unavoidable pandemic like COVID-19 and meager supply of money circulation etc., these are all roots which can be interconnected for the failure of the banking system.

Indian Banks have implemented CBS to leverage technology and improve customer service. Banking reforms, competition, an economic slowdown leading to rising non-performing assets, high-tech investments, and basal risk management have all affected the profitability of Indian banks. But the performance of public and private sector banks has been consistently reasonable. Since public and private sector banks remain the two types of institutions in the Indian banking industry, it is possible to understand their profitability. The study focused on public and private sector banks in India for a period of 11 years from 2012 to 2022.