A Study on Operational Performance Analysis of Public and Private Sector Banks in India

The Indian banking sector plays a pivotal role in driving financial stability and economic progress. This research investigates and compares the operational performance of public and private sector banks in India over the period 2016–2025. The study includes ten major banks five from each sector selected based on market capitalization and relevance. Using secondary data from reliable sources, key operational indicators such as profitability, income generation, efficiency, and asset quality were analysed. Tools like ratio analysis and statistical techniques were applied to uncover patterns and differences. The results consistently show that private sector banks outperform public counterparts in terms of returns and operational agility, owing to better technology integration and customer service. However, public sector banks remain vital for financial inclusion and rural outreach despite challenges such as higher NPAs and operational rigidity. This research underlines the importance of digital transformation, risk management, and policy reforms to enhance public bank efficiency. The findings contribute valuable insights to the banking industry and offer strategic direction for policymakers, investors, and researchers seeking to understand and strengthen India’s dual banking system. Keywords: Operational Performance, Profitability, Efficiency, NPAs, Financial Ratios, Banking sector in India.