Performance of Indian Banking Sector – A Comparitive Study of SBI and HDFC

Abstract

Performance of banks is a key indicator of any economy. Both public sector and private sector banks have performed extensively in India. So this paper compares the performance of two leading banks in India one being a public sector bank State Bank of India (SBI) and another private sector bank HDFC using secondary data for the previous eight quarters spread over two years. The performance measurement of any financial institution is a difficult task due to existence numerous performance indicators. The study uses interest earned, operating profit, net profit, EPS, NPA and return on assets as performance indicators. Further these data are used to calculate simple arithmetic mean, standard deviation and hypotheses testing. Conclusion are drawn based on these statistical tools.