A comparison of the operational efficiency of private sector banks

Banking sector in India became an important component of the financial system of the country. The present banking system has changed with multi products and information technology based sectors with effect of the new economic policy initiates in the year 1991, remarkable changes were made in industrial and service sectors. Financial services sectors especially banking sector made immense changes and achievements. Evaluating the efficiency of banking industry is important because it makes it possible to separate those banks that performed well from those that performed poorly. Technology and global managerial strategies play a key role in the banking sectors which are brought by the private sector banks. An attempt has been made in this paper to have an insight into the financial operations of these institutions. The different sections outline the methodology, evaluate their financial track record and compare their operational performances. A sample of two banks has been taken for operational analysis. The working of all the constituents was satisfactory but the HDFC Bank emerged a top performer among them followed closely by the ICICI Bank. This sends out a strong signal on the future of this dynamic segment.