Public Sector Banks (PSBs) form the base of Indian Banking sector, they account for greater than 78% of total banking sector assets. Unfortunately these banks are burdened with excess Non Performing Assets(NPAs), inadequate modern technology and huge manpower. On other hand private sector banks are leaders in mobile banking, internet banking, ATMs and are making significant progress.
Well, i disagree with the point that public sector banks are low on infrastructure. The SBI bank has the most number of ATMs installed which is a public sector bank and the count is still on. Private banks are starting their branches at cheap localities cutting down the renting/lease cost despite the fact that they have good infrastructure.
Dear Student you are right. But you can't hide yourself from the fact that the public sector banks are not open to the new innovative banking processes and seem hesitant about it. They only come forward when they see their business being lost in the hands of other private sector banks. They are followers of private sector banks and conservative too. I have two accounts, in SBI and HDFC. I recently got access to HDFC’s mobile banking app (don't know if SBI has this), I am able to do most of my transactions through my iPhone and this saves my time too. I think the public sector banks really need to gear up now.
