Performance and Efficiency Analysis of Selected Private Sector banks in India
R. Raghavendra Rao *
Vikrama Simhapuri University, Nellore, Andhra Pradesh, India and Department of Business Administration, Indian Institute of Management and Commerce, Hyderabad, Telangana State, India.
Ch. Srinivasa Rao
Department of Commerce, Vikrama Simhapuri University PG Centre, Kavali, Andhra Pradesh-524201, India and Indian Institute of Management and Commerce, 6-1-91, Central Secretariat, Lakdikapool, Hyderabad-500004, India.
*Author to whom correspondence should be addressed.
Abstract
This paper discusses the performance and efficiency analysis of selected private sector banks in the light of tough competition and technology up gradation. Right from the establishment of Royal Chartered bank, Indian banking sector has seen a magnanimous growth especially after independence. The nationalization of banks in 1969 and 1980 had added fuel to the growth. The New Economic policy, 1991 has totally changed the facets of the banking sector. The doors are open to the private and foreign banks to India and the services are scattered and spread to various areas like wealth management, insurance, mutual funds, forex trading, financial services etc apart from the primary objective of accepting deposits and lending loans. This research paper focuses on evaluation of the performance and efficiency analysis of selected private sector banks with respect to some of the key indicators such as Total deposits, Total advances, Total Assets, Net Profit & Non-Performing Assets of last 10 years. The absolute figures and the average annual growth rates (AAGR) were calculated for each indicator over a period of 10 years and accordingly the rankings were assigned based on performance and efficiency analysis. Key area findings of the research were found and so incorporated in the study. The research found that has been performing well among the given three banks when compared with other two banks.
Keywords: Private sector banks, loans and advances, total assets, non-performing assets, net profit, performance and efficiency