Comparative study of profitability of SBI&HDFC

The Banking sector is the backbone of the Indian economy. A well-developed banking system is necessary pre condition for economic development of an economy. The major role of banks is to collect money from the public in the form of deposits and then along with its funds to serve the demands of the customers quickly. For this purpose, banks maintain adequate profitability. Profit is the main reason for the continued existence of every commercial organization. The present article discusses the profitability of the two banks of India. It takes into account the various profitability ratios of two banks. The common denominator used for developing the various profitability ratios is business volume (deposits + advances). The study analyses the published five-year data from 2008–2009 onwards for the two largest banks, i.e., SBI-the largest public sector bank and HDFC-the largest private sector bank. The comparative analysis of the profitability of the two banks clearly reveals that there is a large difference between in the profitability of the two banks. HDFC's profitability is more than that of SBI.