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INTERNATIONAL JOURNAL OF EDUCATION, MODERN MANAGEMENT, APPLIED SCIENCE & SOCIAL SCIENCE (IJEMMASSS) [ Vol. 8 | No. 2 (I) | April - June, 2026 ]

Comparative Analysis of Public and Private Sector Banks in India: Profitability, Asset Quality, and Digital Transformation (2021–2025)

Dr. Manjusha Vijay Gokhale

The Indian banking sector has undergone significant changes during the period 2021–2025. These changes were pushed by post-pandemic economic recovery, the rapid growth of digital payment systems, regulatory reforms, and financial inclusion initiatives undertaken by the Government of India. This study examines the performance of selected public and private sector banks in India by analysing key factors such as profitability, asset quality, financial stability, digital transformation, and financial inclusion. The research is based on secondary data collected from the annual reports of selected banks, publications of the Reserve Bank of India (RBI), the National Payments Corporation of India (NPCI), the Ministry of Finance, and other authentic sources. Six major commercial banks—State Bank of India, Bank of Baroda, Punjab National Bank, HDFC Bank, ICICI Bank, and Axis Bank—were selected for the study. To measure the performance of the selected banks, the study uses various profitability indicators, Asset quality indicators, Capital Adequacy Ratio, Unified Payments Interface (UPI) transaction volume, and Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts. The findings of the study, during the study period indicates that the private sector banks recorded higher profitability, stronger asset quality, and better capital adequacy ratio than public sector banks. However, public sector banks also demonstrated considerable improvement in profitability and achieved a substantial reduction in non-performing assets. The study also highlights that during this period there is expansion of digital banking and PMJDY accounts. Findings concluded that, Indian Banking Sector, has become more stable, technologically advance and resilient during the post pandemic period.

Gokhale, M. (2026). Comparative Analysis of Public and Private Sector Banks in India: Profitability, Asset Quality, and Digital Transformation (2021–2025). International Journal of Education, Modern Management, Applied Science & Social Science, 08(02(I)), 163–171. https://doi.org/10.62823/IJEMMASSS/8.2(I).9075
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Primary Data Sources

  1. State Bank of India. (2021–2025). Annual Reports.
  2. Bank of Baroda. (2021–2025). Annual Reports.
  3. Punjab National Bank. (2021–2025). Annual Reports.
  4. HDFC Bank. (2021–2025). Annual Reports.
  5. ICICI Bank. (2021–2025). Annual Reports.
  6. Axis Bank. (2021–2025). Annual Reports.

DOI:

Article DOI: 10.62823/IJEMMASSS/8.2(I).9075

DOI URL: https://doi.org/10.62823/IJEMMASSS/8.2(I).9075

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