Financial Performance of Public and Private Sector Banks: A Comparative Study
Year: 2023
Type: article
Abstract: : This paper aims to conduct a comparative study on the financial performance of public and private sector banks during the past ten years utilizing the CAMEL model, group ranking, and ANOVA analysis. The non-performing assets of public sector banks are quite significant as a result of their credit practices, unfavourable terms and conditions of loans and inadequacies in the process of credit sanctions and loan distribution. This has a detrimental effect not only on individual banks but also on the economy as a whole. According to the findings of the study, the performance of all private sector banks is significantly higher than that of public sector banks. The outcome demonstrates that there is a material distinction between the levels of financial performance exhibited by public and private sector banks across all five dimensions, as well as a material distinction between the levels of financial performance exhibited by the two types of banks as a whole. In addition, the report makes recommendations for bettering the financial performances of public sector banks by decreasing the amount of non-performing loans (NPAs). Keywords: Financial Performance, Public Banks, Private Banks, Loan, NPAs JEL Classification Number: G20, G21
Authors: Annesha Saha, Abhijit Pandit, Saha, Susmita
Institutions: ICFAI University, Tripura, Management Development Institute
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W4383051968