The banking sector plays a crucial role in the economic development of a country by mobilizing savings, providing credit facilities, and supporting various financial activities. The financial performance of banks is commonly evaluated through profitability and asset quality indicators, which reflect operational efficiency and credit risk management. The present study is analytical and comparative in nature and is based entirely on secondary data collected from the annual reports of the selected banks. The study covers a period of five years from 2020–21 to 2024–25. To evaluate the performance of the banks, key financial ratios such as Cost-to-Income Ratio, Net Interest Margin (NIM), Return on Assets (ROA), and Return on Equity (ROE), Gross Non-Performing Assets (GNPA), and Net Non-Performing Assets (NNPA) are used. The analysis is conducted using ratio analysis and statistical tools including mean, standard deviation, and paired sample t-test. The findings of the study reveal that both banks have shown improvement in profitability and asset quality during the study period. Canara Bank demonstrated relatively stronger performance in terms of profitability indicators such as Return on Assets and Return on Equity, while Union Bank of India maintained better operational efficiency through a comparatively lower Cost-to-Income Ratio. Both banks also recorded a significant reduction in Gross and Net Non-Performing Assets, indicating improvement in credit risk management and asset quality.