A Comparative Study on the Financial Performance of the Nationalized Banks with the Private Banks in India in the Finan-cial Year 2020-21
Keywords:Earnings per Share, Net NPA to Net Advances Ratio, Profitability Ratio, Return on As-sets, Standard Deviation; Variance
This paper is an attempt to study the financial performance of the nationalized banks and the private banks in the financial year 2020-21 and try to make a comparison between them. The study is both descriptive and analytical in nature and is based on the secondary data only. These data are collected from the various financial statements of the selected banks for the financial year 2020-21 of the ten selected banks. Five nationalized and five private banks are selected randomly. Three accounting ratios namely Return on Assets, Earnings Per Share and Net NPA to Net Ad-vances ratios are used for analyzing the financial performance of the nationalized banks and private banks. Three statistical tools namely mean, standard deviation and variance are used to make the comparison of the financial performance of nationalized banks and private banks. Bar charts are also used for the graphical representation of the collected data. This study reveals that the financial performance of the private banks is far better than the financial performance of the nationalized banks in the financial year 2020-21. This study also reveals that the Net NPA to Net Advances ratios of the nationalized banks is more than the Net NPA to Net Advances ratios of the private banks.