Published Paper Details:

Analysing the economic effectiveness of a select few banks that operate in both the PNB and CBS banks has recently become more important than ever. It is now easier than ever to do this examination. Over the course of the years 2017 to 2022, we assess the profitability, liquidity, efficiency, and solvency of twenty distinct financial institutions, ten of which are public sector banks and the other ten private sector banks. Our assessment is based on a number of financial factors, such as those mentioned above. Our analysis revealed that, for the vast majority of the several financial characteristics that were examined, financial institutions operating in the private sector have outperformed those operating in the public sector. At private sector financial institutions like banks, indicators of profitability, such as return on equity (ROE) and net interest margin (NIM), have been demonstrated to be much higher. As a direct result of the upgrades they have made to the quality of their assets, as well as the rises in operational effectiveness and drops in overhead expenses, they are in a position to do so. The public sector's financial institutions, on the other hand, have struggled to sustain stable levels of profitability. A higher level of non-performing assets (NPAs) and reduced loan recovery rates, on the other hand, have made it challenging for public sector banks to maintain their profitability. They now have to deal with these two issues as a result of these causes. As seen by the current ratio and the cash-to-deposit ratio, public sector banks, on the other hand, have higher liquidity ratios. These ratios reflect the availability of cash in relation to deposits. The public sector banks have more capital available to pay their short-term commitments than the private sector banks do, based on these ratios. This is mostly due to the fact that public sector banks often have the ability to retain bigger cash reserves since the government owns and supports these institutions, ensuring a steady supply of cash. Contrarily, it has been shown that private sector banks have greater efficiency ratios, including the advances to deposits ratio, demonstrating that they are more adept at using their assets to produce profits.