Assessment of Profitability and Solvency of selected Public Sector and Private Sector Banks in India

Abstract

Mr. Montec Singh Ahluwalia, the former vice chairman of the Planning Commission of India, once quoted that, god should be thanked because whether it is in joy or in sorrow, whether we want to newlinedeposit or to borrow, Banks are available to us; otherwise, without Banks, how and where we newlinewould have kept our savings for future use? These valuable words reflect the importance of banks newlinein the economy of every country. The national banking system plays a significant part in the newlinenational economy. Indeed, the banking system of a nation can undoubtedly be regarded as the lifeblood of its economy. Adam smith, in his valuable article, entitled quotCustomer is king in the marketquot suggests that in this era of fierce competition in newlinethe service industry, customers have the right to choose the best and they have the greatest opportunity to get different types of products and different services with different plans. In the above context, King means that customers must newlinebe satisfied to retain and build brand loyalty that translates into brand equity. newlineThe most important feature that a person looks for when depositing money in a bank is security. newlineThe banking system in India was started during the British period. At that time, there were only 3 newlinebanks in our country. When our country gained independence in 1947, our banking industry was newlinein disarray and it needed a governing body to help regulate and function smoothly for all banks. newlineOver the past two decades, public and private sector banks have assumed and fulfilled a major part newlinein the Indian banking industry over varied aspects of business growth, profitability, network, and digital banking. newline