PRIVATE SECTOR BANKS

V\S PUBLIC SECTOR BANKS

- A Presentation by

M.D.Karthik

PRIVATE SECTOR BANKS The banks where greater parts of stake or equity are held by the private

shareholders and not by government.

Have grown faster & bigger over the two decades since liberalisation using the latest technology, providing contemporary innovations and monetary tools and techniques.

• Old private-sector banks - The banks, which were not nationalized at the time of bank nationalization that took place during 1969 and 1980 are known to be the old private-sector banks. Ex-City Union Bank, ING Vysya Bank, Federal Bank etc.

• New private-sector banks - The banks, which came in operation after 1991, with the introduction of economic reforms and financial sector reforms are called "new private-sector banks". Ex- Axis Bank, Kotak Mahindra Bank, Bank of Punjab etc.

PUBLIC SECTOR BANKS Public Sector Banks (PSBs) are banks where a majority stake (i.e. more

than 50%) is held by a government.

The shares of these banks are listed on stock exchanges.

There are a total of 27 PSBs in India [19 Nationalised banks + 6 State bank

group (SBI + 5 associates) + 1 IDBI bank (Other Public Sector-Indian

Bank) = 26 PSBs + 1 recent Bhartiya Mahila Bank].

Comparative Study

Public Sector Banks(Net Sales)

Private Sector

Banks(Net Sales)

Company

NameLast Price Change % Change

Net Sales

(Rs. cr)

ICICI Bank 1,428.45 -6.80 -0.47 44,178.15

HDFC

Bank865.20 -5.80 -0.67 41,135.53

Axis Bank 380.85 3.05 0.81 30,641.16

Company

NameLast Price Change % Change

Net Sales

(Rs. cr)

SBI 2,423.00 -19.35 -0.79 136,350.80

PNB 881.70 -5.60 -0.63 43,223.25

Canara Bank 353.55 3.30 0.94 39,547.61

Net Profits Comparison

Public Sector Banks

Company

Name

Last

PriceChange

%

Change

Net

Profit

(Rs. cr)

SBI 2,423.00 -19.35 -0.79 10,891.17

Bank of

Baroda898.40 -4.10 -0.45 4,541.08

PNB 881.70 -5.60 -0.63 3,342.58

Private Sector Banks

Company

Name

Last

PriceChange

%

Change

Net

Profit

(Rs. cr)

ICICI

Bank1,428.45 -6.80 -0.47 9,810.48

HDFC

Bank865.20 -5.80 -0.67 8,478.38

Axis

Bank380.85 3.05 0.81 6,217.67

Cash\Bank Comparison

Public Sector Banks Private Sector Banks

Compa

ny

Last

PriceChange % Chg

Cash &

Bank

% of Total

Liabilities

ICICI

Bank1,428.45 -6.80 -0.47

41,529.6

07.42

HDFC

Bank865.20 -5.80 -0.67

39,583.6

48.79

Axis

Bank380.85 3.05 0.81

28,238.7

07.64

CompanyLast

Price

Chang

e

%

Chg

Cash &

Bank

% of Total

Liabilities

SBI 2,423.00 -19.35-

0.79

132,549.

63 7.82

Bank of

Baroda898.40 -4.10

-

0.45130,877.

920.40

Bank of India 232.40 0.65 0.2861,382.2

9 11.05

Other Differences

Private Sector Banks

• Jobs mainly got through campus

placements.

• Right arena for highly ambitious

people.

• Better salary packages and more

growth opportunities.

Public Sector Banks

• More pronounced hiring activity

through advertisements.

• Right job for people who want to be in

a safe position in a company for years.

• Less growth opportunities and pension

assures steady income during old age.

Other Differences

Private Sector Banks

• Promotion to the highest level

possible irrespective of age.

• Job security is a bit of issue as

private sector is highly professional.

• Loans have high interest rates.

Public Sector Banks

• Promotion is entirely based on

seniority.

• Job security is assured from the day

one.

• Loans at very low interest rates and

additional interest rates on deposits.

REFERENCES :

www.moneycontrol.com

Association of Mutual Funds in India(Amfi)

THANK YOU