A Comparative Financial Performance of Public and Private Sector Banks Using EAGLES Model
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Abstract
This study investigates the comparative financial performance of public and private sector banks in India using the EAGLES model, which evaluates Efficiency, Asset quality, Growth, Liquidity, Earnings, and Sustainability. The research focuses on a detailed analysis of selected public sector banks (SBI and CANARA) and private sector banks (HDFC and ICICI) over a five-year period. Employing an exploratory research design, the study uses one-way ANOVA tests to assess significant differences across various financial metrics.
The findings reveal that private sector banks generally outperform public sector banks in terms of profitability, growth, and asset quality. However, public sector banks continue to play a critical role in financial inclusion and economic stability. The results also indicate significant disparities in liquidity management and strategic responsiveness, with private banks demonstrating greater efficiency and sustainability.
This research contributes to the existing body of knowledge by providing comprehensive insights into the financial health of Indian banks, thereby informing policy formulation and banking sector reforms. The study underscores the importance of adopting robust evaluation models like EAGLES to ensure a more accurate and holistic assessment of bank performance.