A Comparative Analysis of Financial Performance: State Bank of India and Axis Bank of Jharkhand State.

Abstract

The primary objective of this research is to analyse and compare the financial performance of two leading Indian banks, State Bank of India (SBI) and Axis Bank, over a five-year period (2019–2023), with particular attention to key financial indicators of profitability, operational efficiency, and overall financial health. Research Design/Methodology: The study adopts a comparative analytical approach, drawing on five financial ratios: return on equity (ROE), the price-earnings (P/E) ratio, earnings per share (EPS), dividend per share (DPS), the dividend payout ratio, and net profit margin (NPM), to build a detailed, multi-dimensional comparison between SBI and Axis Bank. Originality/Value: By systematically comparing SBI's and Axis Bank's financial performance across these ratios, this research contributes an empirical addition to the existing literature on Indian banking, offering insight into each institution's financial advantages and limitations. This study is closely related to, and offers an independent point of comparison with, Meenakshi, Pathania, and Yadav (2024), who examined an overlapping set of financial ratios for the same two banks. Limitations: The analysis relies exclusively on publicly available financial data and is confined to a five-year observation window; its findings should be read as a snapshot of recent performance rather than a definitive indicator of long-term trends. Practical Implications: The findings hold relevance for investors, policymakers, and banking professionals seeking to understand the relative financial strengths and vulnerabilities of SBI and Axis Bank. Societal Impact: The stability and performance of major banks such as SBI and Axis Bank influence the broader economy through credit availability, financial inclusion, and economic growth.