A COMPARATIVE APPRAISAL OF FINANCIAL PERFORMANCE OF INDIAN PUBLIC SECTOR BANKS

Abstract

The public sector banks are the most important financial institutions driving the Indian economy in the forward direction. Thus, studying the financial performances of these banks is imperative to the healthy economic growth of the country. In the present study the financial performance of the three Indian banks namely state bank of India, Punjab national bank (PNB) and Canara bank (CNB) were comparatively analyzed for the financial year 2016-17. For this primary data such as balance sheet (BS) and profit loss statement (PLS) for these banks were obtained. The financial analysis explored using various ratio analyses such as Return on Asset (ROA), Return on Equity (ROE) and Net Interest Margin (NIM), Return to Deposit (ROD), NPA ratios. Similarly, the liquidity status of the banks was analyzed using Credit Deposit Ratio (CDR). The results of the study sho that in most of the parameters SBI is found to be outperformed the PNB and Canara bank. The results of the present study will also help all the stakeholders to understand the financial status of the bank and to take prudent decision for the invested/deposited money.