PUBLIC SECTOR BANKS AND

PRIVATE SECTOR BANKS

By Nikhil
Padmanabhan

Definition of Bank

A Bank is a financial institution and a financial

intermediary that accepts deposits and channels
those deposits into lending activities, either
directly or through capital market. A bank
connects customers with capital deficits to
customers with capital surpluses.

Functions of bank
Lending money to public (loans)
Transferring money from one place to
another (Remittances)
Acting as trustees
Keeping valuables in safe custody
Government business

Structure of banks in india

Who is RBI ??

The Reserve Bank of India (RBI) is the central bank of

India, and was established on April 1, 1935 in accordance
with the provisions of the Reserve Bank of India Act, 1934.
RBI is governed by a central board (headed by a
Governor) appointed by the Central Government.RBI has
22 regional offices across India. The Reserve Bank of India
was set up on the recommendations of the Hilton Young
Commission.
Objective: maintain public confidence in the system,
protect depositors interest and provide cost-effective
banking services to the public. The Banking Ombudsman
Scheme has been formulated by the Reserve Bank of
India (RBI) for effective redressal of complaints by bank
customers

Broad classification of banks in

india
1)

The RBI: The RBI is the supreme monetary and banking

authority in the country and has the responsibility to control the
banking system in the country. It keeps the reserves of all
scheduled banks and hence is known as the Reserve Bank.

2)

Public Sector Banks:

State Bank of India and its Associates (8)

Nationalized Banks (19)

Regional Rural Banks Sponsored by Public Sector Banks (196)

3) Private Sector Banks:

Old Generation Private Banks (22)

Foreign New Generation Private Banks (8)

Banks in India (40)

Continued..
4) Co-operative Sector Banks:

State Co-operative Banks

Central Co-operative Banks

Primary Agricultural Credit Societies

Land Development Banks

State Land Development Banks

5) Development Banks: Development Banks mostly provide long
term finance for setting up industries. They also provide short-term
finance (for export and import activities)

Industrial Finance Co-operation of India (IFCI)

Industrial Development of India (IDBI)

Industrial Investment Bank of India (IIBI)

Small Industries Development Bank of India (SIDBI)

National Bank for Agriculture and Rural Development (NABARD)

Export-Import Bank of India

What is public sector

banks

Public
Sector
bank
means
any
Government
Sector
Bank/Institute that goes public... means that issues it
share to general public.. It also has a greater share of
government(more than 50%) so that the main motto of social
welfare
other
than
Maximising
Profit
remains.

Public banks are those banks which are owned , governed or

managed
by
RBI(Reserve Bank Of India)and Public banks are strictly follow
the
rules
regarding
the
RBI......
Public Banks have there own respect and existence......
Public Banks are charged interest on loans as fixed by RBI.....
Salary of Public Banks' members or workers have fixed........
Public Banks's have right to intersect with other countries.....

PRIVATE SECTOR BANKS

A new wave in the banking industry came about with the

private sector banks in India.
With policies on liberalization being generously taken up,
these private banks were established in the country that also
contributed heavily towards the growth of the economy and
also offering numerous services to its customers.
Some of the most popular banks in this genre are: Axis
Bank, HDFC Bank, ICICI Bank and Kotak Mahindra Bank.
The Foreign Banks in India like HSBC, Citibank, and
Standard Chartered bank etc can also be clubbed here.

Comparison b/w public &

private sector banks

Public Sector bank means any Government Sector Bank/Institute that goes
public... means that issues it share to general public.. It also has a greater share of
government(more than 50%) so that the main motto of social welfare other than
Maximising Profit remains.

Where as Private Sector Banks are those Banks where the management is
controlled by Private individuals and Government does not have any say in the
management of these banks. Maximising profit is the basic motto.

List of public sector banks

State bank of India

Dena bank
Allahabad bank
Indian bank
Andhra bank
Indian overseas bank
Bank of Baroda
Oriental bank of
commerce
Bank of India
IDBI bank
Vijaya bank

Punjab & Sind bank

Bank of Maharashtra
Punjab national bank
Canara bank
Syndicate bank
Central bank of India
Union bank of India
Corporation bank
United bank of India
Uco bank

Indian private banks

*Axis Bank

*IndusInd Bank

*Bank of Rajasthan

*ING Vysya Bank

*Bharat Overseas Bank

*Jammu & Kashmir Bank

*Catholic Syrian Bank

*Karnataka Bank Limited

*Centurion Bank of Punjab

*Karur Vysya Bank

*City Union Bank

*Kotak Mahindra Bank

*Development Credit Bank

*Lakshmi Vilas Bank

*Dhanalakshmi Bank

*Nainital Bank

*Federal Bank

*Ratnakar Bank

*Ganesh Bank of Kurundwad

*Tamilnad Mercantile Bank Ltd.

*HDFC Bank

*South Indian Bank

*ICICI Bank

*YES Bank

State bank of India

About SBI

Largest nationalized commercial bank in India

In terms of assets, number of branches, deposits, profits
and workforce.
Headquarters in Mumbai, India and employs about
205,896 people.

PRODUCTS

COMMERCIAL BANKING
RETAIL BANKING
PRIVATE BANKING
ASSET MANAGEMENT
PENSIONS
MORTGAGES
CREDIT CARDS
INVESTMENT BANKINGS

SBI CARDS
SBI Railway Card
SBI Platinum Card
SBI Vishal MegaMart Card
Yatra SBI Card

OBJECTIVES OF SBI

Increasing AWARENESS and KNOWLEDGE about the new

and existing products
To grab ATTENTION of consumers
To Enhance purchase actions.
REINFORCEMENT
Increase in Market Share and sales

Punjab national bank

About PNB

PNB has the distinction of being the first Indian bank to

have been started solely with Indian capital that has
survived to the present.
PNB has had the privilege of maintaining accounts of
national leaders such asMahatma Gandhi, ShriJawahar
Lal Nehru, ShriLal Bahadur Shastri, ShrimatiIndira
Gandhi, as well as the account of the famousJalianwala
BaghCommittee.
Punjab National Bank was registered on 19 May 1894
under the Indian Companies Act with its office in Anarkali
BazaarLahore.
The Bank opened for business on 12 April, 1895.
PNB's founders included several leaders of the Swadeshi
movement such asDyal Singh Majithiaand Lala
HarKishen Lal,Lala Lalchand, Shri Kali Prosanna Roy, Shri
E.C. Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram, and


1.

Personal Banking
Savings Fund Account
1.
PNB Prudent Sweep
2.
Total Freedom Salary Account
3.
PNB Vidyarthi SF Account
4.
PNB Mitra SF Account
5.
PNB Rakshak Scheme
6.
PNB Shikshak Sweep Scheme
7.
PNB Shikshak Overdraft
Scheme
8.
Scheme for Providing
Overdraft Facility to
Pensioners
Current Account
Fixed Deposit Schemes
Credit Schemes
Doorstep Banking Services
Cards
Nomination Facilities
Deceased claim cases
Centralised Banking Solution

Products

1.
2.
3.

.
.

Social Banking
MSME Banking ( service for
micro, small, medium
enterprise)
Agricultural Banking
Agri Business Cell
Agricultural Banking
Farmers
1.
Agriculture Credit
Schemes
2.
Central Sector Schemes
3.
PNB Farmers Welfare
Trust
4.
Procedural Guidelines for
Agricultural Credit
Corporate Banking
International Banking

2.
3.
4.
5.
6.
7.
8.
9.

HDFC BANK

Product & services

Travellers Cheques
credit card
home loan
personal loan
Foreign Currency Cash
Foreign Currency Demand Drafts
Cheque Deposits
Remittances
Trade Services
Mutual funds
Insurance

CONTINUE.

Travellers Cheques

: Travellers Cheques are a safe and

easy way to protect your money when you travel. You can
encash them only when you need to, and only against
your signature, unlike cash which can be stolen and
misused by anybody, immediately .
Credit Card : Credit Card can be used for all your
requirements, be it shopping, eating out, holidaying,
fuelling up your vehicle, railway ticket reservations - just
about any financial requirement, planned .
Home loan : Home loans for individual to purchase or
construct houses.
Personal Loans : The procedure of personal loan is simple,
documentation is minimal and approval is quick.

CONTINUE.

Foreign Currency Cash : Foreign Currency Cash is a convenient

way of meeting personal expenses along your journey, paying

for taxis / internal travel, food expenses etc.
Foreign Currency Demand Drafts : Demand Drafts are issued in
seven currencies like United States Dollars (USD), Great Britain
Pounds (GBP), EURO, Japanese Yen (JPY), Australian Dollars
(AUD), Canadian dollars (CAD) and New Zealand Dollars (NZD).
Foreign Currency Cheque Deposits : We can directly deposit our
foreign currency cheques in to our saving or current account.
Remittances : HDFC Bank offers the remittance facilities by
which we can send and receive money to anyone. They are
categorized depending on location and the urgency with which
we want the money transferred.

CONTINUE.

Trade Service : HDFC Bank have people with high

level of expertise and experience in trade

services to provide services to suit specific
requirements and structure solutions for business
needs.
HDFC Bank have 500 branches for trade services.
Mutual funds : Mutual funds are funds that pool
the money of several investors to invest in equity
or debt markets.
Insurance : HDFC Bank offers a world of choice in
insurance. Like children future plans,
retirements plans, standard life, etc.

ICICI BANK

ABOUT ICICI BANK

Industrial Credit and Investment

Corporation of India
Founded in 1995 by as a joint-venture of
the World Bank
ICICI Bank launched internet banking
operations in 1998.
In 2000, ICICI Bank became the first
Indian bank to list on the New York Stock
Exchange.
ICICI Bank is India's second-largest bank.

PRODUCT AND SERVICES

Travelers Cheque
Card (Credit Cards,Debit Cards ,Travel Cards, Corporate Cards, Prepaid Cards
,Business Cards)

Loan

(Home Loans, Personal Loans, Two Wheeler Loans, Car

Loans)

Investment
Insurance
NRI banking
Deposit
Business banking
Personal banking