Banking: Comparative Analysis of Public and Private Sector Banks

3820 Words Feb 17th, 2013 16 Pages


The economic reforms in India started in early nineties, but their outcome is visible now. Major changes took place in the functioning of Banks in India only after liberalization, globalisation and privatisation. It has become very mandatory to study and to make a comparative analysis of services of Public sector Banks and Private Sector banks. Increased competition, new information technologies and thereby declining processing costs, the erosion of product and geographic boundaries, and less restrictive governmental regulations have all played a major role for Public Sector Banks in India to forcefully compete with Private and Foreign Banks. this paper an
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to 2 p.m. whereas in some it is from 10 a.m. to 5 p.m. with a break for half an hour | Hours for customer dealing inprivate sector banks is more i.e. 8a.m. to 8p.m. | Sincerity and Dedication towards their work | Public Sector banks are not much dedicated towards their work and do not give their customers the top priority | Private Sector Banks are dedicated towards their work and give their customers the top priority | Customer Satisfaction | Public Sector Banks are not able to satisfy their customers fully | Private Sector banks have the capability to get all the customers needs satisfied in respect of all the expectations. | Banks innovativeness | Public Sector banks are lessinnovative in introducing new schemes for customers benefits | Private sector banks introduce new schemes from time to time to attract more and more customers. | Bankers CustomersMeet | Such meetings are not arranged very frequently | Such meetings are arranged from time to time to know therequirements of customers | Bank.s advertising regarding services | Customers are some time unaware of the services provided due to lack of banks advertising. | Private Sector bank advertise their schemes very well to get their customer informed about them. |

Thus the quality and quantity of services provided by the Private Sector Banks is much better than that provided by Public Sector Banks.
In the coming years, the deposit ratio will be 80% in private banks and 20% in public sector banks which is
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