Abstract
The present study examined the performance of public sector commercial banks in mutual fund industry in terms of profitability for the period from March 2007 to March 2016. Banks, which were used as an agent by the government to bring changes in the economic scenario of the country and for which most of the larger banks were nationalised in a phased manner, were not performing well during the 1980s and their profits and deposits started to decline. As a result, the Government of India amended the Banking Regulation Act in 1984, to give a wider scope to the banks in terms of business. Many public sector banks started their own sponsored mutual fund companies after 1987 as they had some pre-existing advantages. The data relating to the present study has been collected from corporate Capitaline Plus database and also from the various publications made by the Reserve Bank of India and others from time to time. The data has been analysed by using various profitability ratios and ratio of mutual fund profit to bank profit to reach the conclusion. The study disclosed that the private banks performed better than the public sector commercial banks during the study period.
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