Published Paper Details:

In order to analyze and assess the financial performance of India's top public and private sector banks and to comprehend their NPA patterns, secondary data analysis is used in this research. The Indian banking industry has been under scrutiny as a result of certain substantial changes in monetary policy. When the Reserve Bank of India (RBI) boosted interest rates to support the weakening Rupee, the cost of funds for banks has dramatically increased. A rise in non-performing assets (NPAs) and a decline in profitability could be the results of this. Bank profitability is impacted by both internal and external variables. Metrics and risk variables relevant to each bank served as a guide for their earnings. SBI leverage financial ratios were judged to be more susceptible to default than HDFC. Efficiency metrics were the primary profit-generating factors at HDFC, the largest private sector bank in India, but not at SBI. Measures of asset utilization efficiency were essentially the same for both banks. The largest public sector bank in India, SBI had significantly higher NPA ratios. The liquidity ratios turned out to be the single most significant SBI determining factor. To determine whether there was a significant difference in the NPA ratio of SBI and HDFC bank over the past three years, a two sample T test with identical variances was also performed.