Online ISSN: 2515-8260

A COMPRATIVE STUDY ON FINANCIAL PERFORMANCE OF SELECTED PUBLIC AND PRIVATE SECTOR BANKS OF INDIA

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Ms. Muskan Diwan 1 , Ms. Neha Choithramani 2

Abstract

This research is based on comparative financial analysis of selected Public and Private Sector Banks using ratios, The banks are selected based on top five & bottom five market capital of the Public and Private sector banks, Earning ratios(Net Interest Margin, Yield on Advances, Return on Equity, Return on Asset), Debt coverage ratios(cash deposit ratio, Investment deposit ratio, Debt to equity ratio, Loan to deposit ratio), Efficiency ratios(Net Non-performing Asset, Cost to income ratio, Operating cost to Asset ratio, Cost of liabilities), Growth ratios(Advances growth, EPS growth, Operating income growth), Liquidity ratios(Credit to deposit ratio, Current and Saving Account ratio, Interest expended to Total fund, Interest income to total fund),Balance sheet ratios(Capital adequacy ratio, Advance/loan fund)Leverage ratio(Current ratio and Quick ratio) Profit and Loss ratios(Interest expended to Interest earned, Other income to Total Income, Operating expenses to Total income) and etc.., this are some ratios which is used in this research, A Graphical representation is used to rank the performance of the bank and T-test is used to comparative analysis of the Public and Private sector banks Regression is used to find out the relation & Predictability of Liquidity(Current ratio, Cash to Deposit ratio, Credit to Deposit ratio, Investment to Deposit ratio) and profitability(Return on Equity, Net Interest Margin) of both Private and Public banks . The ratio data is taken One Year (2019), and this study is mainly focus on to find out the best sector in banking sector

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