Financial sector reforms were initiated as part of overall economic reforms in the country and wide ranging reforms

covering industry, trade, taxation, external sector, banking and financial markets have been carried out since mid 1991. A decade of economic and financial sector reforms has strengthened the fundamentals of the Indian economy and transformed the operating environment for banks and financial institutions in the country. The sustained and gradual pace of reforms has helped avoid any crisis and has actually fuelled growth. As pointed out in the RBI Annual Report 2001-02, GDP growth in the 10 years after reforms i.e. 1992-93 to 2001-02 averaged 6.0% against 5.8% recorded during 1980-81 to 1989-90 in the pre-reform period.

Banking Industry has grown faster than real economy, resulting in the ratio of assets of commercial banks to GDP increasing to 92.5 % by the end of March 2007. Price to book value ratio of Indian banks is second to china on world map. On one side Public sector banks are constituting 78% of total asset base in Industry, on the other hand Private sector banks are witnessing exponential growth due to state of art technology, ATMs network, mobile banking etc.

The financial crises highly affected in past years. Before the crisis erupted, the economies worldwide were characterized by booming stock and real estate market, ample liquidity, low interest rates and lesser volatility in financial markets. Presently, the economy of India is growing around 8-9%. The economy has also acknowledged booming stocks with some above average returns in the shares of banks. Thus, this study is intended to find the performance of the bank shares in this booming economy and test its efficiency with respect to the changes in the market conditions.

This study can be used by any investor who wants to invest in banking sector for short run he can excess the data and take decision. And this research also useful for financial institution. They can know the performance of banking sector from sep.2010 to feb.2011. This research also can be beneficial for government body. They can excess the return from the banking shares. This research also helpful for rating companies.

People prefer to invest in the banking sector? To study the performance of the banking share . To study the factor effecting on the price of banking shares.

Research Design:- The research design in this study is Descriptive. Descriptive research studies are those studies, which are concerned with describing the characteristics of a particular individual, or of a group. This study concerned with narration of facts and characteristics concerning individual bank shares as well as Bank Nifty Index as a whole.

Sampling unit:- All the Banks listed under Bank Nifty Index. Data collection technique:- Our research is based upon secondary data.