Key Factors Affecting Efficiency of Private and Public Sector Bank: Analytical Study

Abstract

The foundation of every nation’s economic structure is made up of financial institutions. It consists financial institutions such as banks, credit societies, asset management companies, insurance firms and mortgage lenders. They assist the economy expand by giving their clients financial support and services. One of the key factors in the growth of the national economy is seen as being banks. The current study examines the financial results of the nation’s public and private sector banks in order to comprehend how well the bank makes financial decisions. Moreover, to identify the various factors that affect the bank’s financial stability. The research instrument used is capital adequacy, asset quality, management capability, earnings capacity and liquidity model and t-test. It can be concluded that public sector banks need to focus on strategic decisions for sustaining in the competition with private sector banks. They require to be more professional as like private players in the banking business.