Profitability Performance of Public Sector Commercial Banks in India : A Profitability Insight

In India, Commercial Banks are broadly divided into public sector, private sector and foreign banks. Public Sector Banks include the SBI and its associate banks numbering eight (8) besides nineteen (19) nationalised banks. Thus there are 28 public sector banks in India. The public sector commercial banks (PSCBs) have a wide network through out the country having large number of branches. It provides loans and advances to various categories of people under various schemes and these banks are very supportive to government for its development programs. In recent years, there have been considerable pressures on the profitability of banks. Profitability is considered as an index of financial health. Banks are urged to generate sufficient revenue to meet the rising cost of funds. Profitability is a key result area where performance and results directly and virtually affect the survival. Therefore, this study analyses the profitability performance of public sector commercial banks in India.