Performance of Indian Public and Private Sector banks- A Comparative study

The Indian banking system has undergone sea changes and significant transformation following financial sector reforms. It is following international best practices with a vision to strengthen the banking sector in India. The economic reforms in India started in early nineties, but their outcome is visible now. Major changes took place in the functioning of Banks in India only after in second generation reforms. It has become very mandatory to study and to make a comparative analysis of financial services of Public and Private Sector banks. Increased competition, new information technologies, innovative products and thereby declining processing costs, the erosion of product and geographic boundaries, and less restrictive governmental regulations have all played a major role for Public Sector Banks in India to forcefully compete with Private and Foreign Banks. The present study is an attempt to capture that the public sector banks have achieved a greater penetration compared to the private sector banks.