What happens if public sector banks privatised?
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There are currently 27 Public Sector Banks in India, Including 6 State Bank of India and Associates, Bhartiya Mahila Bank - this one is the Baby Bank, IDBI Bank
The bad loan woes and precarious capital positions of public sector banks (PSBs) are ... But if the banks are guilty of poor judgement in funding these projects
Hope it helps u frd :-)))))))))
The bad loan woes and precarious capital positions of public sector banks (PSBs) are ... But if the banks are guilty of poor judgement in funding these projects
Hope it helps u frd :-)))))))))
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following things will happen
the Biggest impact will be on Social Security Schemes like Pradhan Mantri Jan Dhan Yojna, Suraksha Bima Yojna and so many other yojnas running in current Financial Environment. The Newly Born Management of Private Banks will be lot lot Profit Oriented and they will restrict them to Profit Making Activities only. Most of these schemes will face a reverse Push. However, Ministry of Finance may force these schemes on Banks still, they will limit their involvement for the sake of their Survival.Most of the Rural Branches of these Banks will be withdrawn, since most of the Rural Branches contribute a Little or almost Nothing in the Profits, and Management would not like Loss Making Units upon their Heads. Banking will hell lot of Difficult in remote Locations.Most of the services that the Customer of PSU Banks are enjoying free of cost (somewhat, the customer of Private Banks are enjoying the same too, having due competition from PSU Banks) will be chargeable. Passbooks, ATM Cards, Lost Card Liability, Nomination, Cash Deposit, Enquiries and many small services has to be paid for.Currently the PSU Banks employ around 7 Lac Personnels. These include the both extreme ends, Both Old and Young, Experienced and Novice, Capable and useless, Worthy and unworthy. The people are employed and they earn salaries. after Privatisation, FIRING is the first thing going to happen. Unworthy and useless employees will have to be thrown out to reduce cost and increase productivity and that will be done with no hesitation.Lending to Corporate will become friendly. in PSU Environment, banks run under Govt. Pressure and have to act as Govt. says. Though, it will become friendly, it will be far more secure and vigilant and NPAs may be expected to come down (Unless some serious fraudster grabs the top position and that is not very much unexpected)
the Biggest impact will be on Social Security Schemes like Pradhan Mantri Jan Dhan Yojna, Suraksha Bima Yojna and so many other yojnas running in current Financial Environment. The Newly Born Management of Private Banks will be lot lot Profit Oriented and they will restrict them to Profit Making Activities only. Most of these schemes will face a reverse Push. However, Ministry of Finance may force these schemes on Banks still, they will limit their involvement for the sake of their Survival.Most of the Rural Branches of these Banks will be withdrawn, since most of the Rural Branches contribute a Little or almost Nothing in the Profits, and Management would not like Loss Making Units upon their Heads. Banking will hell lot of Difficult in remote Locations.Most of the services that the Customer of PSU Banks are enjoying free of cost (somewhat, the customer of Private Banks are enjoying the same too, having due competition from PSU Banks) will be chargeable. Passbooks, ATM Cards, Lost Card Liability, Nomination, Cash Deposit, Enquiries and many small services has to be paid for.Currently the PSU Banks employ around 7 Lac Personnels. These include the both extreme ends, Both Old and Young, Experienced and Novice, Capable and useless, Worthy and unworthy. The people are employed and they earn salaries. after Privatisation, FIRING is the first thing going to happen. Unworthy and useless employees will have to be thrown out to reduce cost and increase productivity and that will be done with no hesitation.Lending to Corporate will become friendly. in PSU Environment, banks run under Govt. Pressure and have to act as Govt. says. Though, it will become friendly, it will be far more secure and vigilant and NPAs may be expected to come down (Unless some serious fraudster grabs the top position and that is not very much unexpected)
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