Public Sector and Private Sector Banks: A Comparative Study in Indian ContextIntroduction:-As we know, banks are that financial institution which plays a role of intermediary between the investor and savers. To achieve this goal, it is also necessary to act. Banks also help improve economic efficiency and raise the standard of living of society. This is the sector that constitutes an important source of financing for most businesses. It also plays an important role in maintaining stable prices, healthy economic growth and jobs. Banks respond to needs by providing funds to individuals, businesses and governments. By carrying out this type of activity, it facilitates the movement of goods and services as well as government activities. The banking system provides much of a country's medium of exchange. It is the main instrument that contributes to the conduct of the surveillance policy, through its deposit and loan mobilization operations. Banks are commercial institutions designed to further the process of capital formation by attracting deposits and extending credit. The productive use of ideal funds is carried out by commercial banks, which helps produce wealth for society. Bank Performance Measures: Since, net income gives us an idea of ​​a bank's performance, but it has a major drawback. it does not scale to the size of the bank. Bank profitability is a basic measure that takes into account the size of the bank and constitutes the return on assets (ROA). It is a good measure to identify the performance of a bank, because the owners of the banks know if their bank is well managed.ROA: Return of assets is a tool that provides information on...... middle of paper......assessed the financial management practices for the year 2006-07, of Federal Bank and Dhanlakshmi bank with SBI. In his study, he found that the above three banks maintained capital above the norms stipulated by the RBI. Compared to SBI and Dhanalakshmi Bank, Federal Bank performed well in terms of cost management and it had the lowest NPA ratio and maximum return on equity, while Dhanalakshmi Bank had very high liquidity. high. Joshi VIjya (2007) found that the Indian banking sector was financially fragile on the eve of radical reforms. he also observed that the Indian banking sector was unprofitable and inefficient. Samwel (2005) observed that the profitability of UCBs can be improved by establishing a loading rate. He also explained that by increasing the interest received, the spread ratio can be increased if it is faster than the interest payment..