Management of assets in Indian banking sector: A comparative study of select banks

The banking sector plays an important role in promoting economic growth by mobilizing financial resources and distributing them effectively across different sectors of the economy. Proper management of bank assets is essential for maintaining liquidity, improving profitability, and reducing financial risks faced by banking institutions. This study focuses on the management of assets in the Indian banking sector with a comparative perspective of selected public sector and private sector banks. The main purpose of the study is to examine the trends in asset quality, analyze the structure of bank assets, and compare the asset management practices followed by banks in both sectors.

The study is based on secondary data collected from reliable sources such as publications of the Reserve Bank of India, RBI statistical reports, and annual reports of banks. The period of analysis covers five financial years from 2020–21 to 2024–25. Several financial indicators have been considered to assess the performance of banks, including Gross Non-Performing Assets, Net Non-Performing Assets, Provisioning Coverage Ratio, Capital Adequacy Ratio, Net Interest Margin, and Net Interest Income. In addition, the study examines the asset structure of selected banks by analyzing components such as cash in hand, balances with the Reserve Bank of India, balances with other banks, short-term money market placements, and investment portfolios.

The results of the study indicate considerable improvement in the financial performance and asset quality of public sector banks during the study period. A noticeable decline in non-performing assets along with increasing profitability reflects improved credit management and operational efficiency. The comparative analysis further shows that State Bank of India performs strongly among public sector banks, while HDFC Bank, ICICI Bank, and Axis Bank emerge as major performers among private sector banks in terms of liquidity management and investment activities. Overall, the findings suggest that strengthened regulatory measures, better risk management practices, and efficient allocation of assets have contributed to the improved stability and performance of the Indian banking sector.