PRODUCTIVITY AND PROFITABILITY OF SELECT PUBLIC SECTOR AND PRIVATE SECTOR BANKS IN INDIA: AN EMPIRICAL ANALYSIS

The process of globalization and liberalization has strongly influenced the Indian banking sector. The ongoing reforms in the banking sector, with their thrust on transparency, efficiency and profitability, have forced the Indian banking sector to adopt suitable strategies with focus on productivity, profitability, competitiveness, and sustainability. Keeping a decade of reforms in the financial sector in the background, this study empirically investigates the productivity and profitability of five large Indian public sector banks and five large Indian private sector banks during the period 1996-97 to 2003-04.