In the dynamic world of finance, banks play a pivotal role in economic stability and growth, and analysing their financial performance is crucial for investors, regulators, and policymakers. This study offers a comparative analysis of the financial performance of banks over five years (2018-19 to 2022-23), underscoring their importance in the financial ecosystem. It evaluates profitability, asset quality, and liquidity, key indicators of a bank’s health and efficiency. Profitability is assessed through Return on Assets (ROA), Return on Equity (ROE), and Net Interest Margin (NIM), while Asset Quality is gauged using Gross and Net Non-Performing Assets (NPA) ratios, and the Credit Deposit Ratio. Liquidity is examined via Liquid Assets to Total Assets and Liquid Assets to Demand Deposits ratios. Employing ratio analysis and a correlation matrix, the research uncovers trends and interrelationships in these financial metrics. The findings reveal an overall enhancement in profitability and asset quality, with notable increases in ROA and ROE and a decline in NPA ratios. Liquidity analysis shows varying trends. This study provides critical insights into the banking sector’s financial health, highlighting areas of strength and potential risk, essential for informed decision-making and strategic planning in the financial industry.