Management Efficiency Of Select Public And Private Sector Commercial Banks In India – A Financial Aspect Approach

Abstract

Management efficiency is very important for conducting a banking business successfully. The performance of public sector and private sector banks in terms of their management efficiency may differ. In this context, the researchers studied the management efficiency of 3 public sector banks (State Bank of India, Bank of Baroda and Canara Bank) and 3 private sector banks (HDFC Bank, ICICI Bank and Axis Bank) for the period of ten years from 2014-15 and 2023-24. The researcher collected and used financial information from the published annual reports of the banks. The researchers applied financial ratios for the analysis (Advances to Deposits Ratio, Deposits to Total Liabilities Ratio, Business per employee, Profit per Employee, Total Advances to Total Assets Ratio, Business Development in terms of Income, Business Development in terms of total assets and Business development in terms of total business). The study found that management efficiency in terms of advances to deposits ratio, profit per employee ratio, total advances to total assets ratio and business development in terms of income of private sector banks was better than public sector banks. The management capacity in terms of deposits to total liabilities and business per employee of public sector banks was better than private sector banks. Overall, the management capacity of HDFC Bank was found to good during the study period among all the sample commercial banks and among the private sector commercial banks and this bank was ranked first among the samples. Followed by, the management capacity of Axis Bank was also good and it was ranked second. Among the private sector Banks, ICICI Bank performed poor in terms of management capacity. SBI stood first among the public sector banks in terms of management capacity. Bank of Baroda and Canara Bank were the least performed banks in terms of management capacity.