PERFORMANCE AND PROFITABILITY OF PUBLIC AND PRIVATE SECTOR BANKS – AN EMPIRICAL ANALYSIS

The paper seeks to evaluate the performance and profitability of Public and Private sector banks in India. The authors have selected six select parameters like Interest Income, Interest Expenditure, Spread, Net Profit /Loss, Operating Profit /Loss and Gross NPA as percentage to Total Assets to analyze the performance and profitability of the banks. Statistical tools like standard deviation, coefficient of variation, Exponential Growth Rate (EGR) and trend analysis have been used for analyzing the data. The time period selected for study is 2001-2008. All the hypotheses formulated were accepted except Interest Income as percentage to total assets which shows that the public and private sector banks have been profitable.