Comparative performance between public and private banks in india

The author concluded that the competition was tough and consumers benefited from better services quality, innovative products and better bargains.

Cash Credit : The Debtor is allowed to withdraw a certain amount on a given security. Discounting Bill of Exchange : It is another method of making advances by the banks.

comparison between public and private sector banks

Axis Bank employees have highest profit per employee. Sometimes banks also undertake income tax services on behalf of the customers.

comparison of public and private banks

In the Interbank market it enables bank to make adjustment according to their liquidity requirements. Higher ratio of advances of bank deposits assets is preferred to a lower one. Later it decreased due to more working capital funds.

Comparison of indian private sector banks

Cite This Article as Corresponding Author The Indian banking system has undergone sea changes and significant transformation following financial sector reforms. Banks are able to create credit because the demand deposits i. Their annual rent is very nominal. This receipt is not transferable. Sometimes this is referred to as "return on investment". The higher the ratio, the higher the credits risk. Axis bank too shows the same trend until where the invested more on assets. When the bank has satisfied itself regarding the soundness of the party, a loan is advanced. Forecasting bank failure: A non-parametric frontier estimation approach.

The ratio is consistently increasing for Axis bank and Bank of Baroda for the five years. It is also asses on the development of interest rate of a bank. A Agency Functions Banks act as agents to their customers in different ways :- i Collection and Payment of Credit and Other Instruments: The Commercial banks collect and pay cheques, bills of exchange, promissory notes, hundies, rent, interest etc.

Overdraft Facilities : Customers of good trading are allowed to overdraw from their current account.

conclusion of public and private sector banks

Loans and advances usually symbolize the largest asset of most of the banks. They are generally issued free of charge. Private Banks like Kotak Mahidra bank had less debt to equity ratio mainly because the bank raises equity capital more than debt.

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Comparative Study of the Public Sector & Private Sector Bank