Purpose –The aim of the study is to address the relative performance of Indian scheduled commercial banks. Banks are operating in India not mainly for commercial gains but for social service, by providing a whole range of interrelated services. The performance should be of qualitative nature and should not only be judged in terms of quantitative criteria, i.e., profit percentages but also on their efforts by improving relative financial performance in the banking system. Indian banking system has historically evolved under the impetus of economic, social and institutional forces, which is uniform for various banks. Therefore, it depends on the relative operational efficiency of each unit of the banking system.
Design/methodology/approach – The present study was to evaluate the relative performance of Indian scheduled commercial banks such as SBI Group, National Banks Group and Private Banks Group for the period from 2007-08 to 2016-17.To assess the relative performance of each bank in relation to the banking industry, ratio analysis, tests of equality of means, cross correlogram with the help E-Views 10 software have been used to identify the variables pertaining to performance of the banking sector. This paper aims to evaluate the performance of banking sector using the Herfindhal’s index of concentration model which measures the performance of banks from one of the important parameter like Net Profit.
Findings – The concentration index of total values has visible more variation in the relative performance of the banks and the analysis for concentration index for Net Profit is concerned that SBI is holding top position followed nationalized banks group
Practical implications – The performance of commercial banks has serious implications on the economic growth of nations in terms of financial aspects. The banking management aims to attain higher profit in terms of a higher banking performance.
Originality/value – This exploratory research is novel, examining the performance on net profit of Indian scheduled commercial banks are seldom sampled. Despite being confined with few alternatives such as State bank of India Banks Group, Nationalized Banks Group, Private Banks Group are very important for the study purpose.
Keywords: Banking, profitability, funds, performance on net profit and operational efficiency