Private Sector Banks Research Articles

A BRIEF ANALYSIS OF THE BANKING INDUSTRY IN INDIA

This research paper explores the evolution and current dynamics of the Indian banking sector, focusing on the role of digital transformation and the performance of public, private, and foreign banks. Focusing mainly on the decadal data from 2013 to 2023, the study analyzes the growth of bank assets, the Credit-Deposit (C-D) ratio, and the penetration rate of online banking. The findings demonstrate that the banking sector in India has undergone significant changes, with technological advancements driving increased efficiency and customer reach. Public sector banks faced challenges due to non-performing assets (NPAs), while private sector banks showed robust asset growth, recovering quickly from the economic impact of the COVID-19 pandemic. Foreign banks also displayed resilience, with steady growth in assets. The research highlights the critical role of digital banking in modern banking services, contributing to financial inclusion and economic growth. KEY WORDS: public, private, foreign, assets, Credit-Deposit ratio, online banking

Emotional Intelligence as a Strategic Driver of Competitive Advantage and Service Quality in the Banking Industry

This research aims to determine whether emotional intelligence (EI), particularly in government-owned commercial banks, is a valid measure of service quality in the banking sector. The study aims to ascertain how emotional intelligence (EI) raises the caliber of services, with a particular emphasis on the departments of operations, credit, and customer service. Using a quantitative methodology, data were collected through purposive sampling from 284 employees in particular bank branches in Kathmandu. The findings show that emotional intelligence (EI) and service quality are highly correlated. Workers with higher EI are more adept at managing their emotions, positively relating to clients, and offering superior customer service. Self-awareness, social awareness, and relationship management are crucial in enhancing service quality, with relationship management exerting the most significant influence. The study's limited scope focusing only on government-owned banks in a particular area may restrict its applicability opening up new avenues for future studies on emotional intelligence in private banking and other sectors of the economy.

Operational Efficiency and Malmquist Productivity of Indian Banks: A Comparison Between Public and Private Sector Banks

The article analyses the operational efficiency of Indian scheduled commercial banks (SCBs) using data from a sample of 35 Indian SCBs, comprising 19 public sector banks (PSBs) and 16 private sector banks (PVBs), in the period between 2010 and 2019. The research uses data envelopment analysis (DEA) to estimate the efficiency of PSBs in comparison with PVBs. The impact of the drivers of efficiency measures is analysed using the Tobit regression, while the Malmquist DEA is used to calculate the overall change in efficiency and productivity over the same time period. Finally, the rate of change in efficiency/productivity is examined with seemingly unrelated regression models. Findings suggest that while the total factor productivity of PSBs’ improved over the last decade, their performance, when compared to PVBs, is poor. This research indicates the relative inefficiency of PSBs and emphasizes the need for attention to this sector. It empirically discovers that PSBs that are larger and older are relatively more efficient, thereby supporting the government policy of PSB mergers.

An Evaluation of Assets Quality of Selected Public and Private Sector Banks in India

The banks performance within a nation needs to be thoroughly assessed, as it plays a crucial role in influencing the country's economic health. This study aims to analyse and evaluate the asset quality of sample Indian public and private sector banks over a ten-year period, from the year 2013-14 to 2023. Banks were chosen based on their market capitalization and net profit, including major public sector banks such as SBI, BOB, and PNB, alongside leading private sector banks like HDFC, ICICI, and KOTAK Bank. The financial performance analysis employs the CAMEL rating model, focusing on the acronym "E." The CAMEL model parameters include Capital Adequacy Ratios (C), Asset Quality Ratios (A), Management Efficiency Ratios (M), Earnings Quality Ratios (E), and Liquidity Ratios (L). The results are analyzed using descriptive statistics. Data for this study were gathered from bank websites, and the CAMEL Model Asset Quality Ratios were applied after processing and organizing this information. Hypothesis testing involved calculations using simple averages and One-way ANOVA. The analysis of the data indicated that private banks excelled in all the ratios of the Asset Quality Parameter than the public banks. Hypothesis testing showed that there is no significant difference between the performance of public and private sector banks when it comes to the asset quality parameter.

A comparative study on the efficiency of the public and private sector banks post-merger: A Data Envelopment Analysis

The paper compares the operation efficiency of the public service banks against the private service banks post-merger. The paper also makes an attempt to rank the individual banks in the years before and after mergers. Hence, the study taken a period of five years from 2017 to 2022. The researchers employed the data envelopment analysis (DEA) methodology to calculate the efficiency. From this viewpoint, the merger of the public service banks enhanced their performance but still lagged behind the private sector banks.

Evaluating the Impact of NPA Dynamics in Selected Indian Banks: A Fifteen-Year Comparative Study

Purpose: The purpose of this study is to investigate the impact on bank profitability, capital structure, and financial stability and trend analysis regarding non-performing assets [NPAs] performance in selected Indian public sector banks vis-à-vis that observed in private sector ones during fifteen years. Methodology: For this research, a quantitative methodological approach has been used, and for quantifiable data, annual reports from four select banks, which include two public sector banks [The Bank of Baroda, The State Bank Of India] as well as two private sector banks [ICICI Bank Ltd., Nainital bank], are analyzed for the period ranging 2008-09 to 2022-23. The analysis calculates Compound Annual Growth Rates [CAGR] and t-tests, Panel Regression models to determine the relationship between GNPA additions, reductions, and write-offs with closing balances. Findings: A major increase in GNPAs is observed in the research among Scheduled Commercial Banks. The public sector banks found an even larger dynamism in NPA growth rates than private sector banks, manifesting the fluctuation to a high degree. The study identifies GNPA addition, reduction, and write-off as key determinants of their respective closing balances. Even though there have been many policy initiatives, the public sector banks [PSBs] remain at a higher level of NPAs due to governance deficits and political interference. The effectiveness of these predictors on GNPA is also confirmed using the Random Effect Model, thus requiring improved risk management practices. Originality: The content of this article is guaranteed to be original.

An Examination of Consumer Knowledge and Satisfaction with Private Sector Bank's E-Banking Services in Chennai

An Examination of Consumer Knowledge and Satisfaction with Private Sector Bank's E-Banking Services in Chennai

Assessing the Market Readiness for Fintech Innovations in Private Sector Banks

Assessing the Market Readiness for Fintech Innovations in Private Sector Banks

Sector and employee withdrawal behavior: evidence from licensed public and private sector commercial bank staff of Sri Lanka

Employee well-being and organizational effectiveness are seriously threatened by withdrawal behavior in the ever-changing business environment. This study explores the complex link between the banking sector (public and private) and employees' withdrawal behavior. Further, which sector of banking staff has more withdrawal behavior is investigated in this study. Regression modeling and quantitative analysis are used in this study to provide persuasive insights into how the sector affects physical and psychological withdrawal behavior (WBP and WBS). Primary data is used in this study, collected through a Likert scale questionnaire from 131 banking staff. The results show a significant and positive relationship between sector and withdrawal behavior. Moreover, the results confirm that private-sector banking staff show higher levels of WBP and WBS than the public sector. Results of the study suggest that both sectors' top management ought to consider some strategic human resource management practices to retain their employees, especially private licensed banks must consider more impressive supervision and motivation strategies to reduce employee turnover because private sector banking staff have a higher level of withdrawal behavior than public sector banking staff.

Applying innovation diffusion theory to blockchain adoption in Indian private sector banks

Applying innovation diffusion theory to blockchain adoption in Indian private sector banks

Analyzing the fraud tendency in the Indian Banking sector

At present, the Indian banking sector is having of worldwide importance for a few years due to its robust regulatory measures and least bank failures during recession and other difficult situations. Banking plays a prominent role in providing required monetary resources for every sector to meet their objectives. At the same time, the banking sector has been facing major challenges like increasing fraudulent cases as Indian banks lost Rs.5.22 lakh crores public money by a way of fraud reporting during the last twelve years, which dents our country’s economy badly. The current study is to analyze the fraud trend and nature wise frauds in Indian public and private sector banks during the period 2012-2023 and further, the current research aims to study the measures taken by Reserve Bank of India and individual banks to curtail the frauds during the said period. Primary data was obtained from bank employees and secondary data from authenticated sources was taken for this study. Our finding revealed that several bank frauds do not differ significantly between the public and private sector banks in terms of amount under cheating & forgery and fraudulent encashment nature. Further, it was observed that fraud amount reporting by public sector banks and private sector banks has been decreasing in trend since 2020 due to the preventive steps initiated by RBI and individual banks.

Loan delinquency in private sector banks in Kerala

The Indian Banking Sector faces significant difficulties in recovering debt. The banker must understand the underlying causes of loan delinquency to address the problem efficiently. A delinquent loan becomes a NPL (Non Performing Loan) when the borrower failed to repay the loan for a period of 90 days or more. Delinquency is the sign of increased credit risk, warnings of willful default, poor asset quality management and operational inefficiency. It may help to predict the loan loss provision for the sub standard, doubtful and loss assets. This article explores the various causes of loan delinquencies of private-sector banks operating in Kerala. The analysis revealed that the retails and SMEs registered high level of loan delinquency. A significant difference was found between the old and new generation private sector banks for the Poor loan portfolio management, inadequate collateral, inadequate monitoring and follow-up. From the mean score it is evident that the NPA management in new generation private sector banks is appreciable when compared to old generation private sector banks.

Retaining Employees in Indian Private Banking Sector

The Indian banking industry is growing fast and needs talented workers. One of the biggest challenges for banks is recruiting and retaining staff. India's private banks are witnessing a spike in attrition rates, especially among younger, frontline staff. Research on retention strategies and banking industry factors is scarce for private banks. Employee retention strategies in select private banks in greater are studied. HDFC and ICICI banks are among the top five private banks surveyed. It identifies the retention factors and processes that influence employees' decisions to stay with the bank, analyses the similarities in retention strategies across select private banks, groups the banks by similarities, and interprets the relationship between demographics and satisfaction with banks' retention efforts. Descriptive statistics and single proportion test, ANOVA, Chi-square, Rank sum method, Post Hoc test, and paired comparison are used to analyse primary data. Salary, training and development, bonuses, workplace relations, and Medi-claim benefits influence private sector bank employees' decisions to stay. Bank employees expect rewards for their work, reasonable goals, and better communication to stay motivated and work there.

The Impact of Strategic Leadership Practices on Organizational Ambidexterity: An Analytical Study of Workers in Iraqi Private Commercial Banks

The study aims to know the impact of strategic leadership practices with its selected dimensions on organizational ambidexterity with its combined dimensions. Since the study is analytical and its place of application is the private banking sector, data was collected using a questionnaire directed to a sample of department and branch managers and division officials in private commercial banks. The study sample included (258) respondents from different job levels. After using statistical analysis programs (SPSS,24), the results of the analysis indicated the existence of a statistically significant relationship of influence and correlation for strategic leadership practices in terms of its dimensions in the dimensions of organizational ambidexterity. The study recommends paying more attention to enhancing the dimensions of organizational ambidexterity within the organization.

Comparative Analysis of Profitability between Public and Private Sector Banks in India: A Study of SBI, Syndicate Bank ICICI Bank, and HDFC Bank

This study provides a comprehensive comparative analysis of profitability between public sector banks and private sector banks in India, focusing on four prominent institutions: State Bank of India (SBI), ICICI Bank, HDFC Bank, and Syndicate Bank. By examining key financial metrics such as Return on Assets (ROA), Return on Equity (ROE), Net Interest Margin (NIM), and Cost-to-Income Ratio, this research aims to elucidate the differences in profitability and operational efficiency between these banks. The analysis draws on secondary data from various financial sources, employing descriptive statistics, graphical representations, and ratio analysis to highlight trends and performance disparities. The study reveals that while public sector banks like SBI and Syndicate Bank exhibit substantial growth in total assets and deposits, private sector banks, particularly ICICI and HDFC, demonstrate superior profitability and cost efficiency. The findings underscore the impact of management practices, technological advancements, and macroeconomic conditions on bank performance. This research provides valuable insights for investors, regulators, and bank management, contributing to a deeper understanding of the factors driving profitability in the Indian banking sector.

Quartet of Sustainable Job Security, Job Performance, Organizational Commitment, and Motivation in an Emerging Economy: Focusing on Northern Cyprus

High-performing employees are essential for an organization to achieve its goals and gain a competitive advantage. Hence, human resource factors are crucial drivers of an organization’s success. These factors include organizational commitment, which is an employee’s sense of belonging to an organization; motivation, which pushes employees to act in line with the organization’s goals; perceived job security; and sustainable job performance. In particular, job security, including excess job security, has significant effects on sustainable job performance, and policymakers and managers must continuously monitor this relationship via their employment policies. However, the legal and social dimensions of employment policies lack clarity, particularly in developing countries, affecting the development of sustainable economic and social structures. This study focuses on the public and private banking sectors of Northern Cyprus, which operate in a developing economy and cannot provide a sustainable political–social work balance. It analyzes and separately compares data collected from 582 public- and private-sector bank employees, examining the mediating effects of organizational commitment and motivation on the relationship between perceived job security and sustainable performance. The study found that job security positively affects sustainable job performance, with organizational commitment and motivation positively mediating this relationship. Moreover, the positive effects of job security on organizational commitment and motivation and, hence, on sustainable job performance differ across the public and private sectors. The findings of this study can provide a reference for labor employment policies in developing countries aiming to build a sustainable economic structure.

Discrepancy in efficiency scores due to sampling error in data envelopment analysis methodology: evidence from the banking sector

Background Data Envelopment Analysis (DEA) methodology is considered the most suitable approach for relative performance efficiency calculation for banks as it is believed to be superior to traditional ratio-based analysis and other conventional performance evaluations. This study provides statistical evidence on the sampling error that can creep into performance evaluation studies using the DEA methodology. Inferences are drawn based on samples, and various preventive measures must be taken to eliminate or avoid sampling errors and misleading results. This study demonstrates the possibility of sampling error in DEA with the secondary data available in financial statements and reports from a sample set of banks. Methods The samples included 15 public sectors and five leading private sector banks in India based on their market share, and the data for calculating efficiencies were retrieved from the published audited reports. The sample data was collected from 2014 to 2017 because the banking sector in India witnessed a series of mergers of public sector banks post-2017, and the data after that would be skewed and not comparable due to the demonetization policy implementation and merger process-related consolidation implemented by the Government of India. The efficiency measures thus computed are further analyzed using non-parametric statistical tests. Results We found statistically significant discrepancies in the efficiency score calculations using DEA approach when specific outlier values. Evidence is provided on statistically significant differences in the efficiencies due to the inclusion and exclusion of particular samples in the DEA. Conclusion The study offers a novel contribution along with statistical evidence on the possible sampling error that can creep into the performance evaluation of organizations while applying the DEA methodology.

An Empirical Study of Public and Private Sector Bank’s NPA for the Period of 2005-2021

One of the most significant and challenging issues affecting the entire banking industry in India is the problem of Non-Performing Assets (NPAs). The primary source of revenue for banks is the interest collected on the loans they extend. However, when banks lend money, they assume the risk of bad credit. This means that the bank is exposed to potential losses if the borrower fails to repay the loan. The conducted analysis addresses the long-standing issues and concerns associated with Non-Performing Assets (NPAs) in scheduled commercial banks in India. This paper aims to assess the efficiency of each scheduled commercial bank in India over the period from 2005 to 2021. It evaluates key indicators, including net profit, total assets, total liabilities, and total employment. The aim and objectives of this study are to evaluate the variables impacted by NPA for public sector and private sector banks in India, to identify the scheduled commercial banks' NPA management shortcomings. The methodology which has been implemented in this study descriptive and panel regression analysis. Results shows that the larger NPA is in private sector bank when compared to public sector bank.

Banking on Efficiency: A Comparative Analysis of Working Capital Management with respect to SBI and AXIS Banks

Working capital management is crucial in this day of Globalization, privatization, and liberalization. Modern companies must use both aggressive and conservative approaches. It is clear that the corporation reduces its working capital to accept more risk in exchange for larger gains and losses; conversely, it increases its working capital level to increase liquidity. To get adequate working capital, a corporation must strike a balance between profitability and liquidity. This study looks at how public and private sector banks managed their working capital between 2008 and 2013. Financial ratios were calculated, and the banks' financial statements for the relevant period were inspected. This study attempts to identify the primary reasons of short-term funding challenges at public and private sector banks. It demonstrates the importance of working capital management in public and private sector banks and, using the T test, the cause of short-term insolvency. It may be claimed that both public and private sector banks are adopting an aggressive strategy, focused on profit maximization while not ignoring short-term solvency

Determinants of work alienation among bank employees: a socioeconomic perspective

Purpose This study aims to identify various socioeconomic variables that influence the development of work alienation among Indian bank employees. Design/methodology/approach Data were collected from a sample of 552 employees working in ten public and ten private sector banks in Punjab. Statistical techniques such as the independent sample t-test, Welch’s F-test, and Games–Howell procedure were used for data analysis. Findings Results of this study indicated that socioeconomic variables, namely, age, educational qualification, monthly income, and work experience, significantly influence work alienation among bank employees. In contrast, gender, marital status, type of bank, and cadre did not have any significant relationship with work alienation. Originality/value This study is one of the limited research studies that has examined the linkage between socioeconomic variables and work alienation in the context of the banking sector of a developing nation like India.