Abstract

Banking and financial institutions play an important role in the mobilization and allocation of resources in the nation’s economy. The sound financial position of a bank is the guarantee not only to its depositors but equally important for the whole economy of any country. Several committees have emphasized the need to improve the performance of the commercial banks. The present study seeks to evaluate the performance of the three sectors of banks namely public, private and foreign. These banks were  purposely selected for the study, keeping in view their role and involvement in shaping the economic conditions of India, especially in terms of Return on Assets, Cost of Funds, Return on Equity, Profit per Employee and the Business per Employee etc,. The study is a descriptive research study based on analytical research design and makes use of the secondary data. The study finds and concludes that the Indian commercial banks have significantly improved their efficiency and profitability.

Keywords: Return on Assets, Cost of Funds, Return on Equity, Profit- per-                    Employee, Business- per- Employee and Reserve Bank of India.