Banking sector had been in turmoil ever since the economic crisis in the US. Private Banks got the bad end of the stick and faced severe liquidity crunch for a long time.
However, things are changing for good as far as the performance of private banks is concerned. The year 2010 has turned out great for Indian Private Sector Banks. So much so, that the Public Sector Banks have been laggards as compared to the Private Sector Banks
Here are some key indicators of the performance of Private and Public sector banks in the July-September 2010 period as against the same period last year
* Figures in Rs crores (Aggregate of 23 Public sector banks)
Even as both private and public sector banks have managed to improve both income and profitability, it is clear that private sector banks have fared much better as far as profitability is concerned.
One of the reasons for the nature of performance of Private and Public sector banks has been attributed to Non-Performing Assets
Non-performing assets (NPAs) have been coming down for Private Banks while NPAs continue to remain high at majority of Public Sector Banks
Despite a relative difference in the performance of private and public sector banks, it is heartening to see that the Banking sector at an overall level is performing well as compared to last year.