Efficiency and profitability of the banking sector in India has assumed primal importance due to intense competition, greater customer demands and changing banking reforms. Since competition cannot be observed directly, various indirect measures in the form of simple indicators or complex models have been devised and used both in theory and in practice. This study attempts to measure the relative performance of Indian top 10 banks declared by RBI. It includes both public as well as private banks. We know that in the service sector, it is difficult to quantify the output because it is intangible. Hence different indicators are used for measuring productivity of banking sector. Segmentation of the banking sector in this paper is done on basis of bank deposits. Overall, the analysis supports the conclusion If a bank manager has done a good job of asset and liability management such that the bank earns substantial income on its assets and have low costs on its liability, profits will be high. the public sector banks are not as profitable as private sectors. It means that efficiency and profitability are interrelated. The key to increase performance depends upon ROE, ROA, EPS and NIM.