Performance Evaluation of Selected Banks– A Comparative Study

Abstract

Banks play a vital role in the economy because they function as financial intermediaries and facilitate payments, creating credit, giving financial services, providing financial stability, and allowing economy to grow and in turn stimulate economic activity. This study examines the financial performance of both Punjab National Bank(PNB) and YES bank over a period of 2020-21 to 2024-25. This study is carried by using to profitability indicators namely ROA and ROE. These ratios are crucial in examining how efficiently company is using its assets to make profits, to measure company’s profitability, how much profit is generated for shareholders from their investments. The findings reveal gradual but consistent improvement in ROA &ROE of Punjab National Bank, reflecting enhanced asset utilization and effective capital management. On the other hand, YES bank showed volatility in the initial years and moderate improvement in the subsequent years. The comparative results indicate that Punjab National Bank demonstrates greater stability in profitability whereas Yes Bank shows faster but inconsistent improvement. This study concludes that sustained improvements in asset quality and capital employment are essential for long term profitability and ROA, ROE remain key indicators for performance evaluation.