ANALYZING FINANCIAL PERFORMANCE (2011-2018) OF PUBLIC SECTOR BANKS (PNB) AND PRIVATE SECTOR BANKS (ICICI) IN INDIA

Abstract
The banking sector is that the principal constituent of the financial system, that is directly connected to the country’s economy. In the present day, commercial Indian banking industry is split into following categories-(a) public sector banks (b) private sector banks. The public sector banks take over private sector in commercial Indian banking system. It’s become necessary to study and to form a comparative analysis of services of public sector Bank and private Sector bank in India. The Punjab national bank (PNB) is one of the second largest public sector banks after SBI (state bank of India) and ICICI (Industrial Credit and Investment Corporation of India) is one of the largest private sector banks in India. In this paper, an effort has been created to assess and compare the financial performances of one of the major public sector Bank (PNB) and Private Sector bank (ICICI) in India for operating period 2011-2018. The data used for this study was entirely secondary in nature and was taken from the annual financial reports of the respective banks for the period 2011-12 to 2017-18. As interest expenses to total expenses are comparable for both the PNB and ICICI bank, individuals preferred both the bank to invest their savings similarly. The proportion of interest income to total income in PNB is higher than that of ICICI, which shows that individuals well-liked PNB to require loans and advances. However, other income to total income of ICICI bank is sounder than PNB bank. The average of net profit margin ratio of PNB bank is lower than ICICI bank and this shows that its lower operational efficiency comparatively than ICICI bank. In case of dividend pay-out ratio, debt-equity ratio and Interest expended to interest earned, ICICI bank has performed sounder as compare to PNB bank. Based on the findings, the study reveals that bank customers have a lot of trust in public sector banks compared to private sector banks. Individuals well-liked PNB bank to require loans and advances as compare to ICICI bank. However, PNB bank has lower operational efficiency comparatively than ICICI bank. In case of dividend pay-out ratio, debt-equity ratio and Interest expended to interest earned, ICICI bank has performed sounder as compare to PNB bank.

Authors
Priyanka Jha
Sarvepalli Radhakrishnan University, India

Keywords
Public Sector Banks, Private Sector Bank, Punjab National Bank (PNB), ICICI Bank, Indian Sector Bank
Published By :
ICTACT
Published In :
ICTACT Journal on Management Studies
( Volume: 4 , Issue: 3 )
Date of Publication :
August 2018

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