Are Public Sector Banks Inefficient Compared To Private Sector Banks?
Public sector banks are those banks where Government holds authority and more than 50 percent of the shares.
We prefer these banks because of the safety and assurance of the funds even if the bank suffers a financial problem. It has fewer hidden charges and a low minimum account balance. Public banks provide job security more than private banks even when they pay high for high positions, as the exploitation is high too. Private Banks are more advanced in terms of technology than public banks. The loan grants in public banks are affected politically rather than on the merits which often leads to their loss.
Although the public banks were the foundation stone for banks and brought banking as India’s new reality as the economy has changed since then, so do the money investment options other than keeping it into low-interest-paying public banks. It is predicted that to save the banking sector in India privatization is the need of the hour.
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