Banks are the backbone of the economy of the country because they play significant role in the effort to achieve stable prices, high level of employment and sound economic process. This industry had already seen various ups and downs before independence, but nationalization gave some boost and stability to the present sector leading to acceleration of economic process, especially after reforms in 1991. Besides, following India’s commitment to the WTO, foreign banks were also given permission to open more branches with effect from 1998-99. With the accelerated competition and high emphasis on profitability, the general public sector banks started adopting economic-oriented model rather than social approach followed for many years. Thus, restructuring of public sector banks and therefore the emergence of latest private sector banks exacerbated the professionalism in the banking sector, and this increased presence of the private Banks. The target of this study is to classify Indian banks on the premise of their financial characteristics and to assess their financial performance. The aim of this study is to research the financial data of Indian banks with a view to examining the relationships among measures like bank’s size, operational efficiency, asset management, return on assets and interest income and thereby to debate their impact on performance of the banks. A shot has also been made to rank the banks on the premise of their financial performance and measures.

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Keywords: Improvements, Commercial Banks, Economic, Utilization, Evaluation, Income.