Comparative Study of Public and Private Sector Bank (With special reference to SBI, BOB, HDFC and ICICI Bank)

Abstract

Banks are the financial institutions that handle money and provide various financial services to businesses and individuals. HDFC Bank Ltd is India's largest private sector bank by assets and market capitalisation. Bank of Baroda (BOB) is recognized as India's second-largest public sector bank (PSB) after the State Bank of India (SBI) in terms of total business, deposits, and advances. The State Bank of India, abbreviated as SBI is largest banks of public sector in India. ICICI Bank is second largest private sector bank in India. The purpose of this study is to examine the financial performance of SBI and BOB (public sector), HDFC and ICICI Bank (private sector). The research study is analytical and descriptive in nature. The data used for the study is secondary and collected from the respective bank’s website. This study is conducted to compare the financial performance of SBI, BOB, HDFC and ICICI Bank on the basis of various ratios such as credit deposit ratio, net profit margin etc. for the period of five years from 2020-21 to 2024-25. The present study found that SBI is performing well and financially sound than other banks but in context of deposits and expenditure ICICI bank has better managing efficiency than other banks. CAGR of credit deposit ratio of SBI is best followed by BOB and HDFC bank. Mean of interest income to total income is highest of BOB which shows BOB earns its income mostly from deposits. Mean of other income to total income is highest of ICICI bank which shows ICICI bank earns its income from non-core sources, its is not good sign. In selected 10 criteria SBI and BOB is better in growth perspective in few criteria and in other criteria ICICI and HDFC bank is ahead in consistent performance perspective.

Keywords: SBI, BOB, HDFC Bank, ICICI Bank, Credit-Deposit Ratio, ROA, net profit margin, Advances.