Difference between old private sector banks and new private sector banks
Answers
Private sector banks account for around 20 per cent of the assets of the banking system. ... Both the old and new private banks have almost the same number of branches. In 2010, old private banks had 5,174 branches and new private banks, 5,213.
Private sector banks have gained prominence in India, and they account for 20% of the asset of the banking system. There are two sub-division of private sector bank:
Old private banks (OPBs)
New private banks (NPBs).
As per the records of 2010, there were 5174 Old Private Banks while the New Private Banks have 5213 branches. All the major old private banks are listed in the stock market except, Tamilnad Mercantile Bank.
So, how do old and new private banks differ?
New Private Banks came into the picture to start a new trend of technological intervention in the banking system. These banks were given license in the mid-1990s with a set condition that all the banking operations will be completely automated.
The objective behind this was to infuse the idea of the technologically aided the Indian banking system. The idea was to create a set of banks which will anchor infusion of technology in the Indian banking system.
Many of the OBPs have also adopted the internet-based banking. Well, this brings OBP and NBP indifferent, but still, they differ in the business size and places of operations.
The NBPs account for 15% of the assets of the banking system, while the OBPs accounts only for 5%.
OBPs don’t have a presence outside India while the NBPs are present in foreign countries.
NBPs derive 2.4% of their deposits from branches outside India.