PERFORMANCE OF PUBLIC AND PRIVATE BANKS IN INDIA: QUALITY, COST, AND CONTRIBUTING FACTORS

Abstract

This study investigates the performance of public and private banks in India, examining their quality and cost with a focus on identifying factors that affect their performance. The study employs a mixed-methods approach, combining quantitative and qualitative data from a stratified random sample of 10 public and 10 private banks in India. The results show that private banks generally outperform public banks in terms of efficiency and customer satisfaction, but public banks excel in terms of reach and accessibility, particularly in rural and semi-urban areas. High non-performing assets (NPAs), regulatory challenges, technological advancements, and external factors such as economic conditions and government policies are identified as key factors affecting bank performance. The study recommends implementing stricter NPA management practices, enhancing regulatory frameworks, investing in technology, and promoting financial literacy and inclusion to improve the performance of Indian banks. Overall, this study provides valuable insights for policymakers, regulators, and stakeholders seeking to promote a robust and stable financial sector in India.