Relative Study of Public Sector Banks with Private Sector and Foreign Banks

A well developed, organized and viable banking system is necessary for developing economies so that it can act as a catalyst to economic growth. The importance of banking institutions is felt more in the developing economies like India, as these economies usually run short of capital and the task of mobilization of resources lies with such institutions. The banking sector has been significantly globalized with the initiation of the Economic Reforms in India. Thus it becomes imperative to examine the relative performance of the banks in the post reform period. The purpose of this paper is to analyse the relative performance of Public Sector Banks with respect to the Private Sector Banks and Foreign Banks in India. The Public Sector Banks are the most vital segment of the Indian Banking System. On the basis of various parameters, paper finds that the Private Sector Banks and Foreign Banks have performed better than the Public sector banks. The performance of the Public Sector Banks during the post-reform era is not inferior as is often heard, instead it is fair to suggest that Public Sector Banks are catching up with the Private Sector Banks and Foreign Banks. At the end, the present paper explores the future opportunities and suggests some strategies that how the Public Sector Banks can make their presence effective in the Indian and Global market.