• Neetika Mahajan
• Dr. Vijay Kumar Sharma

Abstract Commercial banks are the integral and important part of the financial sector. Indian banking sector has gone through a variety of changes. Since, the inception of the Liberalization and Globalization, Indian banking sector is undergoing major transformation. The present paper aims to know the convergence or divergence in the growth of various efficiency parameters of public sector banks, private sector banks and foreign banks. To measure the performance of scheduled commercial banks, average financial ratios are taken for the period 2002-2017. The parameters used in the study are cash deposit ratio, credit deposit ratio, business per employee, and profit per employee, Net NPA to Net advance, Net Interest margin and Return on Assets. The general growth of the performance of banks can be analyzed more meaningfully by comparing their Compound Annual Growth Rate over the period. While analyzing the convergence or divergence in various financial parameters, we test for beta convergence, a conventional Methodology. The beta convergence indicates the presence of convergence in parameter. Liberalization results out significant improvement and the competitiveness of Indian Banking system.

Keywords; CAGR, Convergence, Financial performance and Liberalization.

"COVERGENCE OR DIVERGENCE IN THE PERFORMANCE OF COMMERCIAL BANKS IN INDIA DURING POST LIBERALIZED ERA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.8, Issue 8, page no.a524-a530, August-2021, Available :http://www.jetir.org/papers/JETIR2108067.pdf

"COVERGENCE OR DIVERGENCE IN THE PERFORMANCE OF COMMERCIAL BANKS IN INDIA DURING POST LIBERALIZED ERA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.8, Issue 8, page no. ppa524-a530, August-2021, Available at : http://www.jetir.org/papers/JETIR2108067.pdf