India's banking sector has come under scrutiny. The cost of finances for banks has increased significantly as the Reserve Bank of India( RBI) raised interest rates to help the falling Indian currency, the Rupee. This may show up as a rise innon-performing means( NPAs) and a drop in profitability. Internal and external factors have an effect on bank profitability. The end of this paper is to compare and estimate the fiscal performance of India's largest public and private sector banks and also to understand their trends of NPAs through secondary data analysis. Both banks' earnings were guided by bank-specific criteria and threat factors. influence fiscal rates of SBI were set up at advanced dereliction threat than HDFC. Productivity measures were the crucial motorists of gains at India's largest private sector bank HDFC but not at SBI. Asset operation effectiveness measures were nearly same of both the banks. NPA rates were much advanced at India's largest public sector bank SBI. The single most important determinant of SBI proved to be the liquidity rates. Two sample T test assuming equal dissonances was also conducted to check if there was significant difference between the NPA rate of SBI and HDFC bank over the last 3 times.
Read full abstract