Vol. 7, Issue 5, Part D (2021)

Abstract
Indian Banking Sector is divided into many categories like Public Sector Banks, Private Sector Banks, Foreign Banks in India and Co-operative and Regional Rural Banks. A comparative performance analysis of the two sectors has been attempted in this study that is SBI as public sector bank and HDFC Ltd bank as private sector bank. In the 1980s, CAMEL rating system was first introduced by U.S. supervisory authorities as a system of rating for on-site examination of banking institutions. This rating ensures a bank’s healthy conditions by reviewing different aspects of a bank based on variety of information sources such as financial statement, funding sources, macro-economic data, budget and cash flow. State Bank of India (SBI) and HDFC Bank are the two largest banks in India in public and private sectors respectively. To compare the financial performance of the banks, various ratios have been used to measure the banks’ profitability, solvency position, and management efficiency. According to the analysis, both the banks are maintaining the required standards and running profitably. From the present study, HDFC has been a better performer in terms of profitability and management efficiency as compared to SBI for the study period. This study will help enhance further research on the subject by researchers and academicians.