Public bank vs private bank
Dr. K.S.SRINIVASA RAO Prof. CHOWDARI PRASAD
Associate Professor (QM Area) Associate Professor (Finance Area)
Official e-mail: srinivas@mail.tapmi.org chowdarip@mail.tapmi.org
Personal e-mail: srinirao35@yahoo.com chowdarip@yahoo.co.in
T.A.PAI Management Institute (TAPMI), MANIPAL – 576 104
Udupi District, Karnataka, India, Ph. (Office): 0820 – 257 1358 / 257 3162 / 257 3163
Key Words: Banking Survey, Efficiency, Financial Strength, Globalization, Profitability, Public Sector, Private and Foreign Banks, Size and Scale, Statistical Techniques, Transition Analysis
Topic Area: Banking
Abstract
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. Due to reforms in the 1990s, the depth and width of financial system in India has improved. Though role of banks as financial intermediaries has reduced gradually, market share of banks continues to remain the largest in the financial market (CRIS INFAC Banking Annual Review: August, 2002). 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.
For the last five years, several agencies in India started comparing the working of Industries, B-Schools, Banks, etc. on their performance over the past, through surveys. This, some times gives a feel that pushing a person into waters who has not learnt about swimming and asking him to compete with other professional racers. Keeping this point in mind, the authors have taken the survey results on banks over a period of time and compared Indian Public Sector Banks among themselves