Analysis on bank performance indicators of select public and private sector banks in India

Banking sector in India is one of the most important sector playing an important role in growth of Indian economy. After the liberalization the role of banks is increased to provide monetary services to entrepreneurs, customers and common people. Banking sector operations are increased due to growth of industrialization. The rapid growth in industrialization encouraged both public and private sector banks to expand their services to meet requirements of bank customers. The performance of banks is measured based on performance indicators like ROA (Return on Assets), ROE (Return on Equity) and NIM (Net Interest Margin). The said three factors are the key bank performance indicators to assess the concern bank performance. The ROA, ROE and NIM are most important factors in measuring the bank performance and the growth of any commercial banks is largely depends on these three financial ratios. The growth of ROA is very important for any bank to increase their assets in long run, ROE is concern with market movements and it is influenced by the different market conditions linking to banking sectors. NIM is very important to increase the internal operation efficiency of bank and to improve the liquidity and profitability conditions in banks. The current paper emphasizes on key performance indicators of select public and private banks and compare their performances and analysed the factors influencing the key performance indicators.