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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM63996
Volume:
10 |
5 |
May 2026
Pages:
1-5
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Department of MBA
KG REddy college of Engineering & Technology
Department of MBA
KG REddy college of Engineering & Technology
In this paper, a verifiable assessment of execution of the commercialized banks in Indian finance sector is carried out based on financial stability, financial efficiency and profitability. The secondary data has been used for the analysis in this paper from the State-supported and Clubby sector banks representing the representative bank for a fixed period and the data has been taken from the Biennial report and publications by the Reserve Bank of India. Central business enterprise indicators (such as return on assets (ROA), return on equity (ROE), non-performing assets (NPAs) and net interest margin (NIM) are used to measure operational performance and risk management practices. Furthermore, the results reveal the impact of regulatory changes, technology advances and the digitalisation of banking on banking performance in general. The survey highlighted the need for direction, governance and innovation in financial systems to stay competitive in the new financial landscape. The survey adopts the ratio analysis and comparative statistical technique to analyse the difference in performance of different category banks. The 'consequences' suggest that the overall performance of private sector banks is more profitable and efficient than that of the public sector banks particularly with regard to asset quality and management. However, despite the asset quality and capital adequacy challenges the public sector banks are facing, they can play an important role in advancing financial inclusion and credit growth. Lastly, the study provides the policy makers, bankers and researchers with an insight into the key influencing factors for bank performance and recommendations for enhancing the skillfulness and stability of the finance commercial enterprise in the Indian context.
KEYWORDS
In the present study, an empirical assessment of the performance of commercial banks in India banking sector has been conducted in terms of the various financial parameters, which include profitability, efficiency and asset quality. The analysis highlights the fact that the Indian banking sector has seen a dramatic change over the years, owing to regulatory changes, new technology and competition. The study results show that on the profitability level, operational efficiency level, and asset management level, the performance in general of the private sector banks is better than the public sector banks. Private sector banks with higher ROA and ROE show the effective management of their resources and higher utilization practices.A higher value of Return on Assets (ROA), Return on Equity (ROE) and Net Interest Margin (NIM) in private sector banks indicates good management practices and utilization. Meanwhile, public sector banks are still grappling with the issue of non-performing assets (NPAs), which adversely affect their bottom line and financial health. Even with these difficulties public sector banks serve the Indian economy well; they enable financial inclusion, support the priority sectors and have a large network of branches in rural and semi-urban areas. Despite their efforts for greater efficiency and fewer limitations, their role in socio-economic development is still relevant.
In the present study, an empirical assessment of the performance of commercial banks in India banking sector has been conducted in terms of the various financial parameters, which include profitability, efficiency and asset quality. The analysis highlights the fact that the Indian banking sector has seen a dramatic change over the years, owing to regulatory changes, new technology and competition. The study results show that on the profitability level, operational efficiency level, and asset management level, the performance in general of the private sector banks is better than the public sector banks. Private sector banks with higher ROA and ROE show the effective management of their resources and higher utilization practices.A higher value of Return on Assets (ROA), Return on Equity (ROE) and Net Interest Margin (NIM) in private sector banks indicates good management practices and utilization. Meanwhile, public sector banks are still grappling with the issue of non-performing assets (NPAs), which adversely affect their bottom line and financial health. Even with these difficulties public sector banks serve the Indian economy well; they enable financial inclusion, support the priority sectors and have a large network of branches in rural and semi-urban areas. Despite their efforts for greater efficiency and fewer limitations, their role in socio-economic development is still relevant.
Publication Date
5/27/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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Conflict of Interest
The authors declare no conflict of interest related to this research work.
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