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Bank

This document discusses different types of banks, including public sector banks and private sector banks. Public sector banks are banks where the government owns over 50% shares. They offer services nationwide and have large customer bases due to perceptions of security. However, they also have disadvantages like bureaucratic management and inability to make quick decisions. Private sector banks are majority owned by private entities. They offer customized services and quick decisions but charge more fees and don't serve rural areas as extensively.

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sanuj singh
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27 views11 pages

Bank

This document discusses different types of banks, including public sector banks and private sector banks. Public sector banks are banks where the government owns over 50% shares. They offer services nationwide and have large customer bases due to perceptions of security. However, they also have disadvantages like bureaucratic management and inability to make quick decisions. Private sector banks are majority owned by private entities. They offer customized services and quick decisions but charge more fees and don't serve rural areas as extensively.

Uploaded by

sanuj singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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A bank is a financial institution

licensed to receive deposits and make


loans. Banks may also provide
financial services such as wealth
management
Types of Bank
Central Bank.
Cooperative Banks.
Commercial Banks.
Regional Rural Banks (RRB)
Local Area Banks (LAB)
Specialized Banks.
Small Finance Banks.
Payments Banks.
Banking Product
Fixed Deposit
Recuring Deposit
Debit Card
Credit Card
Savings Account
Current Account
What is Public Sector Bank ?
 Public sector banks are those banks where the
government holds more than 50% ownership. With
these banks, the government regulates the financial
guidelines. Because of government ownership, most
depositors believe that their money is more secured in
public sector banks. As a result, most public sector
banks have a large customer base.
Advantages of Public Sector Bank
 Here are some advantages customers get from
public sector banks.
 High-interest rate on deposits
 Low-interest charge on loans
 Employees get full job security
 These employees also get a pension after retirement
 Offer service to a large customer base
 Offer their service to the rural part of the nation
 Offer financial service through multiple branches
Disadvantages of Public Sector
Bank.
 Here are some disadvantages associated with public
sector banks.
 The big bureaucratic system at the management level
 Inability to a big financial decision quickly
 Offer less customized service to the customers
 Too many complaints against the employees for their poor
service
 Most public sector banks are suffering from big corruption
scandals
 High defaulter rate from the customer
 Public sector banks spend lots of money on financial
operation
What is Private Sector Bank ?
 Private Sector Banks: In these banks,
most of the equity is owned by private
bodies, corporations, institutions or
individuals rather than government.
These banks are managed and
controlled by private promoters.
Advantages of Private Sector Bank
 Here are some advantages that are associated with
private sector banks.
 Private Sector Banks offer quick service to the
customers.
 These banks also offer customized services according
to the customer’s financial needs.
 Private Sector Banks has a streamlined management
system.
 Quick financial decision making is possible in private
sector banks
Here are some common disadvantages of private sector
banks.
Private Sector Banks charge extra on every financial service.
These banks only operate in cities and out of reach for the
rural population.
Private Sector Banks offer no job security to the employees.
Thank you

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