A Study Of New Private And Public Sector Banks In India

Abstract

Banks serve as the backbone to the financial sector, which facilitate the proper utilization of financial resources of a country. The banking sector is increasingly growing and it has witnessed a huge flow of investment. In addition to simply being involved in the financial intermediation activities, banks are operating in a rapidly innovating industry that urges them to create more specialized financial services to better satisfy the changing needs of their customers. One of the most popular methods used to measure banking performance is the CAMELS framework, developed in the early 1970’s by federal regulators in the USA. In this paper, an attempt was made to study the performance of Public sector banks and their private sector counterparts based CAMEL framework. As per the study the performance of the PSB’s is substantially better than their private sector counterparts.