Nationalized Banks and Private Banks. How do they stack up?
Since 1990 Indian banking mechanism is witnessing GoIs various reform oriented initiatives. Regulatory measures are being spruced up than ever to protect the banking client. Long ago people used to personally visit the branch for availing certain services and not now. More above are possible just through punching and clicking. Thanks to the digital initiatives taken by RBI and Bank Managements. Now anything and everything is possible as customer convenience is central to the digital initiatives about financial transactions. In such a changing milieu there is a necessity to introspect one's performance vis-a-vis others. As the market is divided between public sector and private a curiosity arises to gauge their performance. C-D Ratio, I-D Ratio, Number of bank offices, Deposit mobilization, No. of Employees, Business per Employee, Profit per Employee, RoA, NIM, Cost of Funds, Non-interest income are few variables considered for carrying out this study. Particularly, it aims to assess the progress of banking sector in India since its inception and understand how those select variables are affecting their bottom line and competitiveness? Whether Nationalized banks and Private banks differ significantly from each other or not? and who is to get the most share in the cake? Which banking variable determines their profitability at the most?. Population based study is conducted for the period of data concerning FY ending 2010 to 2015 about the subjects from RBI repository. Statistical tools revealed an alarming difference in Business per Employee was found between Nationalized banks & Private banks. Further in deposit mobilization private banks outweigh Nationalized banks.