Performance Analysis of Indian Banks – A comparative study of Commercial Bank and Urban Cooperative Bank

Abstract

Since the start of economic reforms, the banking sectors in India has undergone a lot of churn both in terms of competition and regulation. The Government of India took many initiatives to reform the Cooperative Banking Sector. These Banks must adhere to the various risk management norms of the Government. Thus, the basic intention of this paper was to understand the preparedness of Indian banks and in specific Urban Cooperative Banks (UCB’s) in the context of economic reforms, recent policy developments. Hence, we tried to evaluate the performance of selected banks form the Urban Cooperative and a commercial bank. Evaluation of performance of banking sector is one of the most effective measure as well as indicator in order to evaluate the soundness of any economy. We did the analysis through the CAMEL analysis for the selected banks namely of AXIS and NKGSB bank for the period of 2015-16 to 2017-18 and are rated accordingly. The result of this research study indicates that the banks have been progressive, but in the wake of any crisis in the financial system or stronger regulations, it might be difficult for these banks to sustain their performance.