Private banks vs. Public banks.
Private banks are customer friendly, whereas public banks are filled with grouchy employees. Private banks are tech oriented whereas the public are not.
Thats the way it ahs been for yeras now
Thats because that the private banks are newly sprouted mushrooms, whereas publice banks havent. a take at the history of what happened to our banking sector after Independence. The Reserve Bank of India as a Central bank was nationalised in the year 1935 by an act the Reserve bank of India act passed in the parliament. .The then existing - Imperial Bank of India was nationalised with a new name State Bank of India after the parliament passed the State Bank of India act 1955.
Our great prime minister who wanted a’mixed economy’, nationalised 14 private sector banks. At that time, these banks grew to be big players under the management big business houses. Some prominent private banks such as Central Bank owned by Tatas, United Commercial Bank by Birlas, Syndicate Bank by Pais.
Throughout the exsitence, the goiverment has used stronger publice banks to bail out some of its weaker banks Government and has merged them with the big ones. thus creating some of the NPA’s in the banks.
The second blow through administerted leding, proiorty sector lending. I amd not of the thought that these sectors should not be leant to, but it is just that, forcing the banks to compulsorily shell out so much and that to noncredit worthy clients. did ate some npa’s tooo
Third hit is that not able to keep with the tech saviness, the publice banks are still employee heavy, network heavy, branch heavy.
Haveing been under the watchful eyes of the goverment, these companies werent able to shell out that huge a investmetn in IT.
It is just a matter of time.it is a matter of change.
the run may be slow. but once the public sector banks catch up then it will be a run for the money for the private banks.