Similarities and Dissimilarities between Performance of India�s Leading Public and Private Sector Banks

Dr. Rama Krishna Yelamanchili; Y Vijaya Lakshmi

Volume : V, Issue : V, May - 2016

Similarities and Dissimilarities between Performance of India�s Leading Public and Private Sector Banks

Dr. Rama Krishna Yelamanchili, Y Vijaya Lakshmi

Abstract :

Indian banking industry is on rollercoaster ride since past few years. Stringent norm imposed by Reserve Bank of India with regard to Asset Quality Review is bitterly affecting the banking sector. In this context, we try to assess the performance of leading Indian public and private sector banks. We chose six banks with highest deposits and lending amounts of which three are from public sector and three from private sector banks. We obtain annual reports and stock prices data of these banks for three years from 2012-13 to 2014-15. Data are analyzed using both fundamental and technical analysis. Results of the study reveal that public sector banks are able to mobilize higher deposits with minimal operating costs. On the other hand private sector banks generated substantial income through income from other source and shed fewer amounts on provisions and contingencies. When we test for performance persistence we fail to find any such relation in public and private sector banks. At the end we fail to reject the null hypothesis of no difference in the mean returns of public and private sector banks.