The banking sector is the wheel of any economy. This sector is the most dominant sector of the financial system in India, with good valuations and increasing profits. After liberalization in 1991, the banking industry underwent major changes. Private Banks came into force, and now, they are playing a major role in the development of the Indian banking industry. In the process, they have jolted the public sector banks out of complacency and have forced them to become more competitive.The objective of present paper is to analyze the major component of the lending policy of the Indian private sector banks. This attempt also sheds light on a comparative study of financial performance between few selected private banks through their different lending options. In this attempt, the authors have just tried to emphasize the role of loan performance as a key agent in the profitability of private banks during the years 2002 - 2007.

1. Agarwal, M.D. (1987), “Efficiency of Public Enterprises in India”, Jaipur, Prateeksha Publication, pp.13-28,p.103 ,p.117.
2. Agarwal, N.P. (1982). “Analysis of Financial statements”, New Delhi, National Publishing House, pp. 55-71.
3. Akhil Bhan. (2009). “Merger in Indian banking sector benefits and motives”, Social Science Research Network, pp. 5-8.
4. Appleby Paul H., (1962), “Pricing, Labour and Efficiency in Public Sector”, New Delhi, Pearson Education India, pp. 18-33.
5. The Indian Bankers (Nov. 2009), “Risk Management in Indian Banks”, Journal of Indian Bank's Association, Vol. III, pp. 23-29.
6. K.M. Bhattacharya. (March 2002) “Management of Non-performing Advances in Banks”, Global Journal of Finance and Banking Issues, Vol. IX, pp.6-9.
7. ICRA Limited, (2004), “Report 1: Global Benchmarking”, IBA Bulletin, special issue, January 2004, p. 30.
8. Narasimham M. (1998). “Report of the committee on banking sector reforms Govt. of India”. pp. 15- 40.
9. Parasmal Jain, (2004), “Basel II Accord: Issues and Suggestions”, IBA Bulletin, June 2004, pp.9-10.
10. Prashanth, K Reddy. (Oct. 2002) “A comparative study of Non Performing Assets in India in the Global context - similarities and dissimilarities, remedial measures”, Indian Accounting Review, Vol. VI, pp. 4-5.
11. ICICI Bank. 2001- 2008 Annual Reports.
12. Axis Banks. 2001 - 2008 Annual Reports.
13. Kotak Bank 2001- 2008 Annual Reports.
14. HDFC Banks 2001 - 2008 Annual Reports.