The wider objective of the banking sector reforms in India has been to improve and increase efficiency and profitability of the banks. The banking sector in India has continuously underground various changes in the area of prudential, regulatory, disclosure, and supervisory norms. It has been passing through the liberalization process and the regulation of interest regime at the same time. Commercial banks, particularly the dominant public sector banks, have been facing competition from the rival banks. The present study is an attempt to compare financial performance of public sector bank based on CAMEL variables and to find out whether the average performance of both public sector banks diverge significantly.