private sector

Major Advantages: 

1 Relative safety: Not to suggest private sector banks are not safe but banking itself is a risky business and the collapse of private banks is more prevalent than we think. Having the Indian government’s backing, public sector banks are almost unlikely to break down.

2 Accessibility: Public sector banks have an enormous network of branches, especially even in distant rural and semi-urban locations. Most of the private sector banks have a limited number of branches, which are mostly concentrated in the Metro and Urban regions.

3 Affordability: The requirements like minimum balance etc are comparatively less in public sector banks and it must be far easier for people from lower and middle-income people to open and maintain their accounts in public sector banks than in private sector banks, where these necessities are more rigid and costlier. Most of the fees and service charges of public sector banks are also relatively less than private sector banks.

4 Employee Benefits

When considering a job, it is often best to note the overall package rather than just the provided salary. And while public sector salaries can be lower than those in the private sector, public sector employees often enjoy a greater and better deal.

In the public sector, employees can enjoy benefits such as better working hours, medical covers, and retirement benefits. The sector also provides employment awards and allows overtime to be accrued and paid back in flexible leave. This allows employees to create a good

5 Aiding the Community

Public sector organisations are made to provide services to the public, which is opposite to the private sector whose goals are focused on generating profit.

The community, as well as individuals, greatly benefit when these public services are done quickly and effectively. By focusing on providing aid for the community, one can feel a greater sense of purpose in the


When public services are done right, they can make a real impact on individuals and communities. These types of public roles are well suited for people who are motivated to make positive changes to benefit those around them.


Generally, the public sector is more reasonable than the private industry due to employment awards and agreements that preserve shorter working hours. Overtime can also be accrued and paid back in flexible leave.

Major Disadvantages:

Customer Service: The services in public sector banks are relatively slow and somewhat inefficient (partly because the employees have to deal with a larger number of customers and under limited logistical support) than in private sector banks. Due to strong unionisation and assured job security, staff of public sector banks are likely to be more lethargic, unresponsive and sometimes even discourteous to customers compared to their counterparts in the private sector. (This point is mostly valid only in Metro and Urban branches. Otoh, one can get more personalized and friendly service from the staff at the rural and small-town branches of public sector banks.

Slow Decision making: The processing of loan applications are likely to take an inordinately long time and be bogged down by interminable procedural bottlenecks in public sector banks whereas these processes are much faster and more efficient in private sector banks.

There is a common misconception that public sector banks lag behind private sector banks in adopting the latest technological advances. Now there is no difference in this respect between public and private sectors, though the employees of public sector banks may be a tad less tech perceptive than their private sector counterparts.

Now if one can just flip the above points, that will give the advantages and disadvantages of private sector banks.

To sum up, if you belong to the high-income upper middle class and reside in metro or urban areas, private sector banks are for you. On the other hand, if you belong to lower or middle-income groups and live in villages or small towns, public sector banks must suit you better.


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