A comparative study on Public Banks versus Private Banks

1. PRIVATE SECTOR BANKS
VS PUBLIC SECTOR BANKS
- A Presentation by
M.D.Karthik

2. 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.

3. 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].

4. Comparative Study 
Public Sector Banks(Net Sales)
Private Sector
Banks(Net Sales)
Company
Name
Last Price Change % Change
Net Sales
(Rs. cr)
ICICI Bank 1,428.45 -6.80 -0.47 44,178.15
HDFC
Bank
865.20 -5.80 -0.67 41,135.53
Axis Bank 380.85 3.05 0.81 30,641.16
Company
Name
Last 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

5. Net Profits Comparison
Public Sector Banks
Company
Name
Last
Price
Change
%
Change
Net
Profit
(Rs. cr)
SBI 2,423.00 -19.35 -0.79 10,891.17
Bank of
Baroda
898.40 -4.10 -0.45 4,541.08
PNB 881.70 -5.60 -0.63 3,342.58
Private Sector Banks
Company
Name
Last
Price
Change
%
Change
Net
Profit
(Rs. cr)
ICICI
Bank
1,428.45 -6.80 -0.47 9,810.48
HDFC
Bank
865.20 -5.80 -0.67 8,478.38
Axis
Bank
380.85 3.05 0.81 6,217.67

6. CashBank Comparison
Public Sector Banks Private Sector Banks
Compa
ny
Last
Price
Change % Chg
Cash &
Bank
% of Total
Liabilities
ICICI
Bank
1,428.45 -6.80 -0.47
41,529.6
0
7.42
HDFC
Bank
865.20 -5.80 -0.67
39,583.6
4
8.79
Axis
Bank
380.85 3.05 0.81
28,238.7
0
7.64
Company
Last
Price
Chang
e
%
Chg
Cash &
Bank
% of Total
Liabilities
SBI 2,423.00 -19.35
-
0.79
132,549.
63 7.82
Bank of
Baroda
898.40 -4.10
-
0.45
130,877.
9
20.40
Bank of India 232.40 0.65 0.28
61,382.2
9 11.05

7. 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.

8. 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.

10. REFERENCES :
 www.moneycontrol.com
 Association of Mutual Funds in India(Amfi)

11. THANK YOU