Private & Public Bank

Comparative Table
Criteria Meaning Public Sector Bank Private Sector Bank
These banks are under the

Status of Controlling These banks are under
control of a private
Control Authority control of the Government
individual.
Public Sector Banks are the

Private Sector Banks are the
banks whose more than
Shareholding banks whose majority of
Structure 50% shareholding lies with
Pattern stake is held by private
the central or state
corporations or individuals.
government.
Public Sector Banks are

formed by passing acts in
the parliament. For e,g:
Private Sector Banks are
Governing Act State Bank of India
Registration registered under the Indian
or law (Subsidiary Banks) Act,
Companies Act
1959 & Bank
nationalization Act (1970,
1980)
The Reserve Bank of India

Act, 1934 (RBI Act) gives
Reserve Bank of India (RBI)
Regulatory power to Reserve Bank of
Regulatory Body issues rules, regulations,
Control India (RBI) to issue rules,
directions, and guidelines
regulations, directions, and
guidelines
Private banks have a higher

FDI cap at 74 percent,
provided there should be
20% of Foreign no change of control and
FDI Foreign Direct
Investment is allowed in management. RBI regulations
Investment
Public Sector Bank do not permit a single
organization or individual to
invest for more than 10
percent of stake in a bank.
Bank Board Bureau (BBB)

gives recommendations for Private Banks have their own
Selection of the appointment of full-time selection process like any
Management
Management Directors as well as non- other private entity but have
Executive Chairman of to fulfill RBI guidelines.
PSBs.
Public banks are slow in

new technology Private Banks always look
Ease of adopting new technologies
and innovative forward to using innovative
Banking and still follow old
products technology which can speed
processes
Criteria Meaning Public Sector Bank Private Sector Bank
up their processes and

increase reliability.
Public sector bank

Private sector bank
Consumer employees are not urged
Customer employees are more agile and
Grievances or enough to resolve customer
Services proactive in catering to
query redressal requests or handle customer
customer requests.
complaints.
Despite technology-based
Public sector banks have a banking Private banks are
Number of wider branch network and mainly catering services to
Accessibility
Branches higher tier 2 cities and rural tier 1 cities and few tier 2
coverage. cities and have limited access
for the rural population.
The Private Sector also

Banking Services and provides similar services as
products are common in in public sector banks but the
Facilities both public and private only difference is that they
provided by sector banks. But Public focus on higher consumer
Services
Banks to their sector banks are way ahead satisfaction and services at a
consumers in providing services to the high premium, their rural
marginalized section of outreach is very less in
society. comparison to private sector
banks.
Usually, Loan Disbursal in

Public Sector Bank Loan
a Public Sector bank
Disbursal is attached to the
involves a lot of paperwork
performance of the
Speed of and takes more time as
Loan employees and that too is
Disbursing the compared to the private
Disbursal driven by innovative and
loan sector. In public sector bank
technology-driven processes
employees are driven by old
that reduce the turnaround
processes hence reduce the
time.
turnaround time
Public Sector banks have a

high Consumer base
Number of They have a lesser consumer
because of high
Customer customers to base and private banks need
geographical coverage and
Base whom they cater more time to gain trust from
people also find government
the services people.
banks are more trustworthy
than private ones.
In Public Sector Banks

In Private Sector Bank
Employees are promoted on
Employee Process of promotion is done on the
the basis of their seniority,
Promotion Promotion of basis of merits. Only
performance is not the
Status Bank Employees performing employees will
major criteria for the
get growth.
promotion.

Private & Public Bank

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Comparative Table

Criteria Meaning Public Sector Bank Private Sector Bank

These banks are under the

Public Sector Banks are the

Public Sector Banks are

The Reserve Bank of India

Private banks have a higher

Bank Board Bureau (BBB)

Public banks are slow in

up their processes and

Public sector bank

The Private Sector also

Usually, Loan Disbursal in

Public Sector banks have a

In Public Sector Banks

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