A STUDY ON OPERATING SIGNIFICANT IN NEW PRIVATE SECTOR BANK

Description:
The banking system occupies an important place in a nation's economy, The Indian Banking industry has come way from being passive business institution to a highly proactive and dynamic entity Before liberalisation, the Indian banking structure was largely controlled by parameters like branch size and location. On the recommendations of M. Narasimham Committee the reforms in the banking sector were initiated in 1991 and permission to the new private sector banks was given; The new economic policy of liberalisation, privatisation and globalisation has made a significant effect on the working of banks. New private sector banks are targeted to achieve higher levels of productivity and profitability. In this paper the performance appraisal of new private sector banks has been: measured though spread, burden and profitability ratios by considering eight parameters. Indices of profitability parameters have been calculated to know the efficiency of new private sector banks.