Private Sector Banks Research Articles

Determining the intention of new recruits to quit or stay in the organisation: An empirical study on private sector bank employees of India

Determining the intention of new recruits to quit or stay in the organisation: An empirical study on private sector bank employees of India

Empirical Analysis of Indian Public and Private Sector Banks' Financial Resilience Using the Bankometer S - Score Model

Empirical Analysis of Indian Public and Private Sector Banks' Financial Resilience Using the Bankometer S - Score Model

How efficient are Indian banks? An application of stochastic frontier analysis

Purpose This study aims to investigate the efficiency of Indian commercial banks from 2002 to 2018 using the stochastic frontier analysis. Design/methodology/approach This study uses the parametric approach of the stochastic frontier to examine the technical efficiency of banks acknowledging exogenous shocks, omitted variables and measurement errors, filling a gap in the existing financial literature. The scope of this study was constrained to 71 scheduled commercial banks to make it manageable and productive with 1,036 observations. Findings The results show that the mean technical efficiency of new private banks remained constant at 92.7% during the study period because of technology diffusion in banking systems. The technical efficiency of the nationalized, old private and foreign banks has enhanced over the period because of the efficient utilization of various innovative information technology services such as mobile banking, cheque truncation system, magnetic ink character recognition. However, the foreign banks are still laggards with a mean technical efficiency of 81.7%. The empirical findings suggest that new private sector banks depict higher efficiency than nationalized, old private and foreign banks. Research limitations/implications This study’s sample represents all categories of banks (public, private and foreign) including the banks that merged or consolidated during the period of study. To achieve the desired results, the authors incorporate the consolidated and merged banks in their data set. Further, the authors excluded all scheduled small finance banks and scheduled payment banks from their analysis, as these entities commenced operations post-2015. Additionally, the authors also excluded regional rural banks because of their distinct mandate aimed at servicing the rural populace and agricultural sector. Originality/value This study contributes to the literature on the performance of conventional banks in general and emerging markets, in particular, using the most recent data and covering a relatively long period using the stochastic frontier approach.

Impact of Non-Performing Assets on Financial Health of Banks

The banking sector is a crucial financial service industry that supports development plans by channelling funds for productive purposes, facilitating the flow of funds from surplus to deficit units, and aiding in the implementation of government financial and economic policies. Banks fulfil social objectives through priority sector lending, extensive branch networks, and employment generation. Maintaining asset quality and profitability is essential for the survival and growth of banks. However, a significant challenge faced by the banking sector is the prevalence of Non-Performing Assets (NPAs). The Reserve Bank of India defines an NPA as “an asset, including a leased asset, that ceases to generate income for the bank.” Major causes of NPAs include wilful default, misuse of borrowed funds, and inadequate pre-loan inquiries. As of June 30, 2018, the Gross NPA of Indian banks was ₹10.03 lakh crores, with Public Sector Banks accounting for 88.74% of this total. The top five Public Sector Banks—SBI, PNB, IDBI, BOI, and BOB—make up 46.67% of the Gross NPAs. Private Sector Banks hold 11.26% of the total Gross NPAs, with leading banks being ICICI, AXIS, and HDFC. The primary aim of this paper is to examine the causes and effects of NPAs in the banking sector.

A Study on Corporate Social Responsibility of Selected Public and Private Sector Banks in India

In the present times Corporate Social Responsibility (CSR) plays a major role in banking and other sectors in achieving their objectives. In India the companies are adopting Corporate Social Responsibility (CSR) practices at a very fast rate due to their ethical standards as well as due to the requirements of the law. The companies are aware about their critical role in the society. The banking sector is no exception in this context. They are also adopting Corporate Social Responsibility practices. The public as well as private sector banks have already initiated many social and economic welfare programs which includes community welfare, education, environment protection, poverty eradication, health and medical care, rural area development etc. In the present study the Corporate Social Responsibility practices of banks has been studied. For this purpose, one bank from public and one from private sector has been selected. The public sector bank chosen for the study is State Bank of India and HDFC Bank has been selected from the private sector banks. The study analyzed and compared the total expenditure incurred by the banks on various Corporate Social Responsibility activities. The study found that both the banks have increased their spending on corporate social responsibility activities.

A comparative study of public and private sector banks in India: An experimental analysis

A comparative study of public and private sector banks in India: An experimental analysis

HRD Conducts Research Using Public Sector Banks and Private Sector Banks

The banking sector, which is reliant on the health of the public, was discussed in this article. Only people use its services, and they are also the only ones who directly influence productivity. Up until 1969, banking was still in some ways a traditional enterprise. when the Indian government took over major banks. Banks became a powerful force for social change after being nationalized and ceased to be the sole source of finance for industry. The assertion that the banking industry is increasing astronomically is supported by additional proof in the form of statistics. The Indian banking industry needs to be governed by banking professionals if it is to profit from the sector on a global scale. The goal of the study is to look at four important factors that have a big impact on how the banking industry develops in private sector banks: selection and recruitment policies, training, performance appraisal, and compensation. For this descriptive and exploratory analysis, the researcher used a standard random sampling technique. In the study, employee impressions of the HRD environment in the two largest banks are assessed. Additionally, it looks to examine if bank employees working for public and private sector banks have different perspectives on each facet of the HRD climate. The HRD climate is divided into three categories: General Climate, OCTAPACE, and HRD Mechanisms. 200 employees submitted the primary data using a standardized questionnaire with 40 items. KEY WORDS Performance review, bank employees, private banks, and methods of human resource management.

A COMPARATIVE STUDY OF AUDIT EXPENDITURE IN PRIVATE SECTOR AND PUBLIC SECTOR BANKS

The paper embarks on a thorough examination, comparing the audit expenditures incurred by private sector banks and public sector banks. It's not merely a financial analysis; rather, it aims to uncover whether there's a discernible variance in how these two categories of banks allocate resources to auditing. However, the focus extends beyond financial figures; it seeks to unravel the underlying attitudes and perceptions towards auditing within the banking landscape. The study endeavors to unravel the intricate fabric of the banking industry, by scrutinizing these divergent perspectives, where perceptions often shape practices and policies. The core inquiry revolves around whether private sector banks and public sector banks view auditing through the same lens of importance. The paper intends to settle query whether they both equally invested in ensuring robust audit mechanisms, or does one category regard it as a perfunctory exercise? This line of questioning opens a window into the broader ethos of banking governance and risk management. Is auditing perceived merely as a regulatory obligation, a box to be checked to fulfill compliance requirements? Or is it recognized as a fundamental pillar of organizational resilience and financial health?

ASSESSING THE IMPACT OF CUSTOMER AWARENESS ON GREEN BANKING PRACTICES IN PUBLIC AND PRIVATE SECTOR BANKS IN KARNATAKA

Green banking which integrates the environmental sustainability into financial services has gained prominence as a means for banks to contribute to sustainable development. The research employs a quantitative survey to assess how customer awareness influences the implementation of green banking initiatives. A sample of 400 customers and 40 bank managers from both public and private sector banks was selected to provide a comprehensive analysis. The findings indicate that customer awareness is a significant driver of green banking adoption across both sectors. Private sector banks characterized by higher technological innovation and customer-centric approaches and demonstrates a stronger correlation between customer awareness and the adoption of green practices associated to public sector banks. However, public sector banks with their broader reach the potentiality to lead the green banking movement, particularly in rural areas, despite facing challenges related to legacy systems and resource limitations. The study concludes that enhancing customer awareness and engagement is a crucial for advancing green banking practices. Banks that prioritize sustainability and effectively communicate the benefits of green banking to their customers are likely to gain a competitive advantage. The present study focuses on Assessing the Impact of Customer Awareness on Green Banking Practices in Public and Private Sector Banks in Karnataka to offers valuable insights for policymakers, banks, and stakeholders aiming to promote environmental sustainability within the financial sector.

The Impact of Cultural Diversity on Workforce Efficiency in Private Banking Sector of Pakistan

This study explores the impact of cultural diversity on workforce efficiency within Pakistan's private banking sector. With globalization increasing diversity in age, gender, geographical location, and language, the research aims to understand how these dimensions influence labor efficiencies. The study employs a mixed-methods approach, combining quantitative surveys of employees from various private banks with qualitative interviews to gather comprehensive insights. Findings indicate that cultural diversity enhances creativity, decision-making, and problem-solving due to a broader range of perspectives. However, challenges such as communication barriers, misunderstandings, and conflicts can hinder collaboration and productivity. The significance of the study lies in its practical recommendations for fostering an inclusive work environment that leverages the strengths of a diverse workforce. Effective management practices are highlighted as crucial for mitigating potential downsides, thereby boosting overall efficiency and competitiveness in the banking sector. This research contributes to the broader discourse on workplace diversity, offering valuable insights for both academic and industry stakeholders.

Digital Transformation and Work Stress Impact on Employee Engagement in the Private Banking Sector

Digital transformation has been a significant topic of discussion in Pakistan's banking industry. High levels of stress in the workplace might be caused by the introduction of various uncertainties due to technological advancements. Work-related stress can directly impact employees' engagement in their work, jeopardizing the organization's effectiveness. The study took place in a private bank in Indonesia, involving 448 participants located in Jakarta. These responders have witnessed significant technological advancements during the past year. This work utilizes a quantitative approach, specifically employing the Structural Equation Modelling Partial Least Squares (SEM PLS) method. Furthermore, 25 indicators from several worldwide publications are utilized. The study's findings demonstrated that the 25 indicators were able to form each of the latent variables. The research indicated that workplace stress had a negative impact on employee engagement. Therefore, it was suggested to conduct further research on the issues identified in the findings.

Factors Affecting Employee Satisfaction in Private Commercial Banks: Evidence from Bangladesh

The purpose of this study is to determine the factors that influence employee satisfaction in private commercial banks in Bangladesh. Data used in the study were collected through an online survey. A total of 380 entry to mid-level employees from the private banking sector participated in the survey during 2024. Research method is a multiple regression analysis. The study takes employee satisfaction as the dependent variable and estimates relationship between the dependent variable and seven exogenous variables. The findings of the study show that organizational culture, leadership behavior, job characteristics, work environment, compensation and benefits, and employee training have significant positive impacts on employee satisfaction. Banks may design strategies to assure competitive compensation, build a positive work environment, support effective leadership, and encourage employee engagement and growth by understanding the elements that affect employee satisfaction.

Comparative Study of Stress Levels and Coping Mechanisms among Women Bank Employees in Kanpur City: Public vs. Private Sector Banks

Purpose: The study compares stress levels and coping mechanisms among women bank employees in Kanpur City, focusing on key stressors, coping mechanisms, and differences in effectiveness. It aims to contribute to understanding stressors faced by women in the banking sector, inform strategies for improving well-being, and contribute to gender equity and workplace health efforts. Theoretical Framework: The study on stress levels and coping mechanisms among women bank employees in Kanpur City uses a theoretical framework. Key components include the transactional model of stress and coping, job demands-resources model, gender role theory, intersectionality theory, organizational factors, organizational culture and climate, and organizational support theory. The mixed-methods approach is used to capture the complexity of stress experiences and coping mechanisms. The framework also emphasizes creating healthy work environments to mitigate stress and enhance well-being. Design/Methodology/Approach: The study aims to assess stress levels and coping mechanisms among women bank employees in Kanpur City using a comparative design and mixed-methods approach. The target population includes women from public and private sector banks. Data collection methods include structured surveys and in-depth interviews. The study will analyze data using statistical techniques and qualitative analysis. Ethical considerations include informed consent, confidentiality, and ethical approval. Limitations include sampling biases and the study's specificity to Kanpur City. Practical implications include policy recommendations and contribution to existing literature on stress management and workplace support. Findings: The study on stress levels and coping mechanisms among women bank employees in Kanpur City is hypothetical. However, the findings can be presented and interpreted using a structured section. The summary should include a summary of the key findings, quantitative data comparison, demographic influences, qualitative themes, coping mechanisms, and sector differences. The findings should be compared and analyzed using theoretical frameworks, and the implications should be discussed for organizational policies and practices. Implications: The study on stress levels and coping mechanisms among women bank employees in Kanpur City suggests implementing gender-sensitive support programs, promoting work-life balance, and enhancing resilience training. It also emphasizes equal opportunities for career development and mentorship programs. The study also contributes to stress theory, gender equity, and policy development, urging regulatory oversight and industry collaboration. It also has societal implications, as it can lead to societal changes and inspire future generations. The findings can guide policy and practice in the banking sector.

A study on factors influencing lending decisions for MSMEs by scheduled commercial banks in the CGTSME scheme

This study investigates the dynamics of the credit guarantee and technology support for micro, small, and medium enterprises (CGTSME) scheme in India, focusing on how bankers perceive the scheme and how these perceptions influence their lending decisions for MSMEs. Data were collected from public and private sector banks in four major Indian cities over three months using a questionnaire-based survey strategy. Analysis was conducted using partial least squares structural equation modeling (PLS-SEM). The findings indicate that the 5Cs (character, capacity, capital, collateral, and conditions) significantly impact bankers’ perceptions of the CGTSME scheme. However, factors such as the creditability of borrowers, availability of financial statements, firm capital size, and guarantee fee payment do not have a significant influence. Interestingly, the margin requirement was found to be a significant factor in shaping bankers’ perceptions. Additionally, the study reveals that bankers’ perception of the CGTSME scheme significantly affects their lending decisions for MSMEs. These results have important implications for policymakers and banks looking to enhance the effectiveness of the CGTSME scheme and improve access to finance for MSMEs. By understanding the factors that influence bankers’ perceptions, policymakers and banks can design more targeted interventions to support MSMEs. Future research could further explore these factors and their impact on bankers’ perception and lending decisions, contributing to a deeper understanding of how to support the growth and development of MSMEs.

A Study of Risk and Efficiency in Public and Private Sector Banks in India

This study aims to compare the risk profiles and operational efficiencies between public and private sector banks in India. By analysing various financial metrics and employing advanced statistical techniques, we seek to uncover the underlying factors contributing to the differences in performance between these two sectors. The investigation encompasses a comprehensive review of both quantitative and qualitative data, including but not limited to, capital adequacy ratios, non-performing assets (NPAs), return on assets (ROA), and customer satisfaction indices. Furthermore, the study delves into the regulatory environment, technological adoption, and strategic initiatives undertaken by these banks to mitigate risks and enhance efficiency. Through this comparative analysis, we aim to provide insights that could inform policy decisions, strategic planning, and risk management practices within the banking industry in India. Keywords: Banking sector, Risk management, Operational efficiency, Public vs. private banks, financial performance, Regulatory environment, Technological adoption.

A Review of Public and Private Sector Banks' Performance in India Utilizing the CAMELS Model

A Review of Public and Private Sector Banks' Performance in India Utilizing the CAMELS Model

A Study of Financial Performance Analysis of Private Sector Banks in India- Ratio Analysis

A Study of Financial Performance Analysis of Private Sector Banks in India- Ratio Analysis

BANKERS’ PERSPECTIVE ON SOCIAL MEDIA BANKING: A STUDY WITH SPECIAL REFERENCE TO SELECT INDIAN BANKS

Social Media Banking (SMB) is an electronic banking channel enabling users to perform their banking services and operations through social media. Most Indian banks use social media for advertisement, customer relations, and marketing communications of products and services, but only a few banks offer services related to social media banking. The main aim of this paper is to study the Bankers' perspective on Social Media Banking services provided by banks in India and the effect of demographic profiles. Primary data was collected through a structured questionnaire to achieve the above goal. The study considered selective public and private sector banks, and the significant variables were social media adoption in banks, benefits, and challenges of SMB. The researcher adopted a simple random sampling method to collect the data from 402 bank bankers who offer social media banking-related services to their customers, and the statistical tools used to attain the objectives of this study are the Independent sample t-test and ANOVA test. The study results from banking professionals whose banks offered SMB services showed a significant effect of demographic variables on social media adoption in banks and the benefits and challenges of SMB. The study's findings provide regulators and banks with insight into the benefits and challenges of social media banking, enabling them to implement a generalized framework and guidelines on social media banking. The researcher suggests to the banks that the benefits and challenges of social media banking pave the way to developing efficient and flawless models for their customers. At last, the study encourages customers to move towards social media for their relationship with banks and real-time grievance redressal.

Performance Appraisal Methods and Job Satisfaction in Public and Private Sector Banks: a Comprehensive Analysis

Performance Appraisal Methods and Job Satisfaction in Public and Private Sector Banks: a Comprehensive Analysis

Manifestations of loan growth – profitability and non-performing loans – a study of the Indian banking sector

PurposeAfter half a decade of balance sheet clean-up prompted by the Reserve Bank of India’s (RBI) asset quality review (AQR), Indian banks are back on track for increased loan growth. Being a financial vehicle for the economy, loan growth cannot be put on hold for a long period of time. But it is also important to understand that loan growth carries an inherent risk of default. A trade-off exists between loan growth, non-performing loans (NPLs) and bank profitability. Our study highlights the importance of understanding this relationship.Design/methodology/approachFor our study, we have taken a sample of India’s private and public sector banks. The dataset consists of the financials of our sample for the period 2006–2021. Two-step differenced generalized method of moments (SYS-GMM) estimation has been used to establish the relationship. The mediating role of NPLs in the relationship between loan growth and profitability is examined by the mediation analysis using structural equation modeling (SEM) and the Sobel test. We have used Stata 16.1 for the analysis of our dataset.FindingsThe findings of our study suggest that bank lending is a major contributor to the bank’s earnings. Loan growth after a certain point has a negative impact on profitability, and it also adds to the NPLs of the bank. The study result indicates that moderate loan growth is key to steady and stable growth in the Indian banking industry.Practical implicationsOur study is directed toward understanding the positive and negative manifestations of loan growth. We develop a framework to understand this relationship and then empirically prove it. The study is beneficial for employees and policymakers alike to minimize the negative impact of loan growth.Originality/valueThe issue of the simultaneous impact of loan growth on NPLs and profitability has not been studied in the Indian banking sector. Also, this study adds to the present literature by studying the mediation effect of the NPLs on the loan growth and profitability relationship.