Page 1 of 9
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 02
February 2019
Available online: https://ejbss.org/ P a g e | 264
Comparative Study of Financial Status of Private
and Public Banks Of India
Lata
Designation : student (M.com final year)
Net qualified in July 2018
slata5215@gmail.com
ABSTRACT
Banking sector is an integral part of Indian finance sector as it deals with
a number of businesses like investment, banking related to corporate
banking, banking related to small businesses etc. One of the popular form
of banking is the retail banking where the record of all the transactions of
the related account holders are recorded.
In India, there are big banks and small banks. The objective of the small
banks should be to provide more and more facilities to the account holders
so that overall financial status of the bank can be enhanced. In order to get
the benefits all the services like subsidies; a person should have a saving
account. An effective growth in the Indian banking sector was observed as
a result of nationalization of Indian banks. The current paper highlights
the financial status of private and public banks of India.
KEYWORDS:
Private, Public, Bank, Account-holder
Page 2 of 9
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 02
February 2019
Available online: https://ejbss.org/ P a g e | 265
INTRODUCTION
Today, the banking sector is growing at a good speed having approximate
11,75,150 employees and 1,09,811 branches in India. It is estimated
that approximate Rs. 67504.54 billion are deposited in Indian banks
every year and the bank credit is estimated to be Rs. 52604.59 billion per
year.
More and more customers are connecting with Indian banking sector.
Also, government is making a lot of efforts to aware the people about the
benefits of having a bank account. Recently, Pradhan Mantri Jan-Dhan
Yojna is launched by Indian government where the bank accounts of the
people are opened with zero balance.
It is the choice of the users whether they want to open the accounts with
public bank or private banks. In India, there are a number of private as
well as public banks. Some of the public banks are Punjab National
Bank, State Bank of India and Indian Bank etc. Whereas, the list of
private banks includes HDFC Bank, Axis Bank and ICICI bank etc.
It is observed that the services of private banks are much better as
compared to public banks. All the banks whether it is private or public
offer the users to open saving as well as fixed deposit accounts.
Page 3 of 9
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 02
February 2019
Available online: https://ejbss.org/ P a g e | 266
On the behalf of the fixed deposit account, the account holder is given a
specific interest. It is observed that percentage of interest is higher in
case of private banks as compared to public banks.
Recently, the merging of some public banks was performed where a
number of public banks were included in State Bank of India. This step
was taken in order to perform the banking transformation in Indian
banking sector so that the operational activities of the banks can be
controlled easily.
Also, the percentage of net assets of private banks are estimated to be
higher as compared to public banks. According to a report, the
percentage of net assets of HDFC bank in the year 2013-2014 was
estimated to be 8.84% while the percentage of net assets of Punjab
National Bank in the same year was estimated to be 6.28%. Hence, it can
be said that the private banks have more net assets as compared to
public banks.
Also, the net profit of the private banks is estimated to be higher than
that of public banks as one report suggested that the increase in the net
profit of HDFC bank was observed to be 26.04% in the year 2013-2014
whereas a negative estimation was reported in case of Punjab National
Bank in the same year.
