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Abstract
The banking sector has become the foundation of modern economic development of a country. The effect of LPG in the financial sector in India is exposing Indian banks to a new economic environment that is characterized by increased competition and new regulatory requirements. So there is a need to examine their strengths and weakness of banking sector. The public and private sector banks are very important segments of banking sector in India. The present study is comparative study of public and private sector bank for three years from the year 2011 to 2013. The study based on secondary data. Both the banks have been compared on the basis of seven parameters. i.e. Branch expansion, advances, borrowings, profitability, deposits, non-performing assets, income and investments. Overall, it may be concluded that public sector banks even have dominant position in numbers of branches in all over India but still facing competition from private sector banks because the public sector banks requires to working in rural areas, it resulting in high per unit transaction costs. So, they should adopt advancement in technology for overcoming reduction of costs in rural branches.