Comparative Study of Public and Private Sector Banks in India (2016–2025)

The Indian banking sector plays a crucial role in financial intermediation, economic growth, and financial inclusion. Over the past decade, both public sector banks (PSBs) and private sector banks (PVBs) have undergone substantial transformation due to regulatory reforms, technological advancements, and changes in risk management practices. This study undertakes a comparative analysis of selected public and private sector banks in India for the period 2016–2025. The analysis focuses on financial performance indicators such as capital adequacy, asset quality, management efficiency, earnings quality, and liquidity using the CAMEL framework. Secondary data were collected from annual reports, Reserve Bank of India publications, and financial databases. The study examines two major public sector banks and two leading private sector banks to understand performance trends over the decade. Statistical tools such as ratio analysis, trend analysis, and comparative averages were applied to evaluate differences between the two banking segments. The findings reveal that private sector banks demonstrate superior performance in terms of profitability, asset quality, and operational efficiency, whereas public sector banks show relatively stronger financial stability due to government support and regulatory oversight. The study concludes that strengthening risk management practices and improving operational efficiency are essential for public sector banks to remain competitive. The findings provide important policy implications for regulators, banking institutions, and financial policymakers in strengthening the resilience of the Indian banking system.