Performance evaluation of Indian banking system: A comparative study of public sector and private sector banks

A well-organized banking system is recognized as a fundamental requirement for the economic development of an economy. Banks facilitate the flow of funds from the areas of surplus to the areas of deficit by offering attractive saving and deposit schemes to the people for encouraging them to save and deposit the same in the bank. When these savings of people are effectively invested by the banks into productive purpose, the rate of capital formation increases and ultimately national income also raises The purpose of the study is to examine the financial performance of public and private sector banks. The data used for the study was entirely secondary in nature. The period of study taken from 2009–10 to year 2010–11. The study found that the overall performance of Public Sector Banks is better than private Sector Banks over the period of study.