An Analysis of Liquidity and Profitability of Selected Commercial Banks of India

The banking sector plays a crucial role in the economic development of a country. This study evaluates and compares the financial performance of selected public and private sector banks in India for the period 2020–21 to 2023–24. The analysis is based on secondary data collected exclusively from the standalone annual reports of State Bank of India, Bank of Baroda, HDFC Bank, and ICICI Bank. Ratio analysis has been employed using key financial indicators such as Capital Adequacy Ratio, Credit–Deposit Ratio, Current Ratio, Net Non-Performing Assets, Return on Equity, Return on Assets, Debt–Equity Ratio, and Net Interest Margin. Statistical tools including Mean, Standard Deviation, and Coefficient of Variation have been applied to evaluate performance consistency. The findings reveal that private sector banks exhibit superior profitability and asset efficiency, while public sector banks maintain relatively better liquidity positions.