A Cash flow statement depicts the changes in the cash position of an organization from one period to another. It has become mandatory to the company’s financial year to present cash flow statement in their annual reports. Based on the cash flow statement a firm can forecast its profit for the forth coming periods (days, months and next year). According Standards(AS -3) guidelines has been issued by the Institute of Chartered Accounts of India (ICAI) for the Cash Flow Statement. According to the standards, all the cash transactions of the company are divided into three activities-Operating, Investing and Financing Activities. This bifurcation of the activities is very vital because it helps the stakeholders and investors in analyzing and interpreting the cash flow data. In this paper, a comparative study has been between two banks HDFC (private sector) and SBI (public sector).