What is the difference between nationalized bank and private bank

Forgot password? Now you do not need to remember your Brijj Password. Suhas N : Not much except scale of operation,Pvt banks consciously don't venture into small ticket size transactions. Posted: days ago. Sudhir Budhia : A Nationalized bank is one that is owned by the government of the country. Since the people decide who the government is, they are also referred to as public sector banks. The government is responsible for the money deposited into the accounts of these banks.

A private sector bank is one that is owned by an independent individual or a company that is controlled by a few individuals. In short, the bank is owned by someone else and they run the bank. The banking policy for The banking policy for both private n nationalised banks r framed by the Central Bank. In India the RBI is the central bank. The only difference i find is that the ladies are prettier in the private Banks than the nationalised ones,but my money is safe with the Govt Banks so i give the pretty faces the good bye.

Better my money safe with a Grandmother,than being broke with a pretty female. Process of selection is different : while nationalised adopt the exam process , private sector adopt the interview and on the spot selection without going into details 2.

Salary is different in both the cases and the salary is different between staff working in the same category. Hire and Fire which is most common in the Private sector bank while it is not there in Nationalised Bank, Until and unless one does fraud 4. Favouritism more in Private sector 5. Transfer policy is good in Private Transfer policy is good in Private sector as compare to Nationalised Bank 6.

Working hours: Unlimited in case of Private sector with no holidays while in Nationalised Bank reasonable 7. Intervention of the Government in Nationalised while the same is not there in Private sector Bank 9. More prone to kick backs in Nationalised while the same is very minimum in Private sector bank less Posted: days ago.

Suryanarayan N : Nationalies banks are run by bankers who have sound banking knowledge conceptually but lack a positive attitude and approach. Private banks are run by pure salesmen. When you are in trouble, you have a face in nationalised bank who goes out to help you out within tha given ambit. In private banks, its voice mails and mundane CSR who take you into endless loops. Nationalised banks have a wider scope of social responsibility which invariably is missing in private banks.

Sunil Aggarwal : All nationalized banks were private banks before except State Bank which was a government bank from the very beginning - Imperial Bank of India renamed as State Bank of India under an Act.

Private banks 19 were nationalized as they failed to be a part of social reforms. They were controlled by rich people and served cause of well off, purely on commercial lines. There were violations of code of conduct as well, as they granted loans to their favourites compromising the quality. Nationalized banks changed the way and reached out to smaller unbanked locations.

Gradually, they became ine Gradually, they became inefficient and laggards. Unions obstructed modernisations and resorted to blackmailing for their own vested interests. Where as in private sector bank, majority is held by share holders of the bank. Both type of bank offer same services, however charges differ and so as the quality and time duration for the services provided.

One can also see the difference between interest rates. Public Sector banks and private sector banks - a definition Public Sector Banks:. Public sector bank is a bank in which the government holds a major portion of the shares. Say for example, SBI is public sector bank, the government holding in this bank is Similarly PNB is a public sector bank, the government holds a stake of Usually, in public sector banks, government holdings are more than 50 per cent. Public sector banks are classified into two categories further- 1.

Nationalised Banks 2. State Bank and its Associates. In nationalized banks the government control and regulates the functioning of the banking entity. However, the government keeps reducing the stake in PSU banks as and when they sell shares. So to that extent they can also become minority shareholders in these banks. In these banks, most of the equity is owned by private bodies, corporations, institutions or individuals rather than government.

These banks are managed and controlled by private promoters. They owing to their improved service offerings give a tough competition to the players in the public sector. Of the total banking industry in India, Public sector banks constitute In terms of the number of banks, there are 27 public sector banks whereas 22 private sector banks. This is an attempt to boost the government's Financial Inclusion drive. Deposit interest rates offered by public sector banks are almost the same when compared to private sector banks.

However new-age banks such as the Bandhan Bank, Airtel Bank are offering marginally better interest rates when compared with their counterparts. Public Sector banks and nationalized banks come under the category of commercial banks in India.

You would have visited a bank or would have done some bank-related work once or maybe many times. Nowadays we need not visit a bank since there are alternatives like net banking and all.

Banks are of three types namely private sector banks, public sector banks, and nationalized banks. The terms public sector bank and the nationalized bank can be used interchangeably and can sometimes refer to the same thing. The difference between a public sector bank and nationalized bank is that a public sector bank is under the state or central government from the very beginning while the nationalized bank is the one that started as a private sector bank but was taken under by the government for the better good.

Public sector banks are under the government as the government is a major stakeholder of these banks. There are 12 public sector banks in India. Public sector banks also include nationalized banks because every nationalized bank is, or will become a public sector bank.