Seminar

Report
On
Public sector & private sector

(File submitted for the partial fulfillment of requirement of

degree course
(semester II) of master of commerce session 2016-2017)

SUBMITTED TO

SUBMITTED BY

Prof. ISHAN ARORA

AMANJOT KAUR

(Asst. Prof. in Commerce

Class: B. COM. (PC) Sem II

Department)

Roll No. 938

GURU NANAK COLLEGE, SUKHCHAINANA SAHIB

PHAGWARA

Certificate-1

This is certifying that I Amanjot kaur, student of B.COM (Pass

course) (semester II) in Guru Nanak College, Sukhchainana
Sahib, Phagwara has prepared this file on Public and Private
Sector. This is my original work.

Amanjot Kaur
B.Com (PC) II Semester
Roll No. 938

Certificate-II
TO WHOM IT MAY CONCERN

This is to certify that Amanjot Kaur, daughter of Raj Kumar,

student of Guru Nanak College, Sukhchainana Sahib, Phagwara
has prepared her seminar file on Public and Private Sector
under my supervision to best knowledge. She has prepared this
file herself.

Prof. Ishan Arora

(Assistant Professor in Commerce department In Guru Nanak
College, Sukhchainana Sahib)

ACKNOWLEDGMENT

I would like to express my special thank of gratitude to our

principle Dr. GURDEV SINGH RANDHAWA, and my guide
Dr. SWINDER Singh ( head of department) as well as my
teacher Prof. ISHAN ARORA, who gave me the golden
opportunity to do this wonderful on topic Public and Private
Sector.

Who also help me in doing a lot of research and I came to

know about so many new things. I really thankful to them.
Secondly I would also like to thank my parents and friends who
help me a lot in finishing this project within the limited time.
I am making this project not only for marks but also to increase
my knowledge.

INDEX
Public sector

Private sector

Introduction of banks

Type of banks

Public sector banks

Private sector banks

Co-operative sector

Development banks/financial institutions

Banking services

6-7

Banking service for NRIS:

public sector bank

List of public sector bank

Private sector banks

9-10

List of private banks in India

11

Comparative study of promotional strategies adopted by public and

private sector banks in India

12-18

Differences Between Public Sector And Private Sector

19-20

Reference

21

Conclusion

22

PUBLIC SECTOR
The public sector is the part of the economy concerned with
providing various government services. The composition of the
public sector varies by country, but in most countries the public
sector

includes

such

services

as

the

military, police,

infrastructure (public roads, bridges, tunnels, water supply,

sewers, electrical grids, telecommunications, etc.), public transit,
public education, along withhealth care and those working for
the government itself, such as elected officials. The public sector
might provide services that a non-payer cannot be excluded
from (such as street lighting), services which benefit all of
society rather than just the individual who uses the service.
Businesses and organizations that are not part of the public
sector are part of the private sector. The private sector is
composed of the business sector, which is intended to earn a
profit for the owners of the enterprise, and the voluntary sector,
which includes charitable organizations.

Definition:
The part of the economy concerned with providing basic
government services. The composition of the public sector
varies by country, but in most countries the public sector
includes such services as the police, military, public roads,
public transit, primary education and healthcare for the poor.
The public sector might provide services that non-payer cannot
be excluded from (such as street lighting), services which
benefit all of society rather than just the individual who uses the
service (such as public education), and services that encourage
equal opportunity.

PRIVATE SECTOR
The private sector is the part of the economy, sometimes
referred to as the citizen sector, which is run by private
individuals or groups, usually as a means of enterprise for profit,
and is not controlled by the State (areas of the economy
controlled by the state being referred to as the public sector).

Definition
The part of national economy made up of private enterprises. It
includes the personal sector (households) and corporate sector
(companies), and is responsible for allocating most of the
resources within an economy. See also public sector.

INTRODUCTION OF BANKS
Modern banking in India is said to be developed during the
British era. In the first half of the 19th century, the British East
India Company established three banks the Bank of Bengal in
1809, the Bank of Bombay in 1840 and the Bank of Madras in
1843. But in the course of time these three banks were
amalgamated to a new bank called Imperial Bank and later it
was taken over by the State Bank of India in 1955. Allahabad
Bank was the first fully Indian owned bank. The Reserve Bank
of India was established in 1935 followed by other banks like
Punjab National Bank, Bank of India, Canara Bank and Indian
Bank.

In 1969, 14 major banks were nationalized and in 1980, 6 major

private sector banks were taken over by the government. Today,
commercial banking system in India is divided into following
categories.
TYPE OF BANKS
Central Bank
The Reserve Bank of India is the central Bank that is fully
owned by the Government. It is governed by a central board
(headed by a Governor) appointed by the Central Government. It
issues guidelines for the functioning of all banks operating
within the country.
PUBLIC SECTOR BANKS
a. State Bank of India and its associate banks called the State
Bank Group
b. 20 nationalized banks

c. Regional rural banks mainly sponsored by public sector

banks

PRIVATE SECTOR BANKS

a. Old generation private banks
b. New generation private banks
c. Foreign banks operating in India
d. Scheduled co-operative banks
e. Non-scheduled banks
CO-OPERATIVE SECTOR
The co-operative sector is very much useful for rural people.
The co-operative banking sector is divided into the following
categories.
a. State co-operative Banks
b. Central co-operative banks

c. Primary Agriculture Credit Societies

Development Banks/Financial Institutions

IFCI
IDBI
ICICI
IIBI
SCICI Ltd.
NABARD
Export-Import Bank of India
National Housing Bank
Small Industries Development Bank of India
North Eastern Development Finance Corporation
Banking Services

Banking in India is so convenient and hassle free that one

(individual, groups or whatever the case may be) can easily
process transactions as and when required. The most common
services offered by banks in India are as follow:
Bank accounts: It is the most common service of the
banking sector. An individual can open a bank account
which can be either savings, current or term deposits.
Loans: You can approach all banks for different kinds of
loans. It can be a home loan, car loan, personal loan, loan
against shares and educational loans.
Money Transfer: Bnaks can transfer money from one
corner of the globe to the other by issuing demand drafts,
money orders or cheques.
Credit and debit cards: Most banks offer credit cards to
their customers which can be used to purchase products and
services,or borrow money.

 Lockers: Most banks have safe deposit lockers which can

be used by the customers for storing valuables, like
important documents or jewellery.
Banking service for NRIs:
Non Resident Indians or NRIs can open accounts in almost all
Indian banks. The three types of accounts that NRIs can open
are:
o Non-Resident (Ordinary) Account - NRO A/c
o Non-Resident (External) Rupee Account - NRE A/c
o Non-Resident (Foreign Currency) Account - FCNR A/c
Public sector bank
The term public sector banks is used commonly in India. This
refers to banks that have their shares listed in the stock
exchanges NSE and BSE and also the government of India holds
majority stake in these banks.
They can also be termed as government owned banks.
Ex: State bank of India

The public sector banks hold over 75% of total assets of the
banking industry, with the private and foreign banks holding
18.2% and 6.5% respectively. Since liberalisation, the
government has approved significant banking reforms. While
some of these relate to nationalised banks (like encouraging
mergers, reducing government interference and increasing
profitability and competitiveness), other reforms have opened up
the banking and insurance sectors to private and foreign player.

List of public sector bank

.Indian Overseas Bank
. Oriental Bank of Commerce
. Punjab and Sind Bank
. Punjab National Bank
. Syndicate Bank
. UCO Bank
. Union Bank of India
. United Bank of India
. Vijaya Bank
Private Sector Banks
Private banking in India was practiced since the begining of
banking system in India. The first private bank in India to be set

up in Private Sector Banks in India was IndusInd Bank. It is one

of the fastest growing Bank Private Sector Banks in India. IDBI
ranks the tength largest development bank in the world as
Private Banks in India and has promoted a world class
institutions in India.
The first Private Bank in India to receive an in principle
approval from the Reserve Bank of India was Housing
Development Finance Corporation Limited, to set up a bank in
the private sector banks in India as part of the RBI's
liberalisation of the Indian Banking Industry. It was incorporated
in August 1994 as HDFC Bank Limited with registered office in
Mumbai and commenced operations as Scheduled Commercial
Bank in January 1995.
ING Vysya, yet another Private Bank of India was incorporated
in the year 1930. Bangalore has a pride of place for having the
first branch inception in the year 1934. With successive years of
patronage and constantly setting new standards in banking, ING
Vysya Bank has many credits to its account.

LIST OF PRIVATE BANKS IN INDIA

Bank of Punjab
Bank of Rajasthan
Catholic Syrian Bank
Centurion Bank
City Union Bank
Dhanalakshmi Bank
Development Credit Bank
Federal Bank
HDFC Bank
ICICI Bank
IndusInd Bank
ING Vysya Bank

 Jammu & Kashmir Bank

Karnataka Bank
Karur Vysya Bank
Laxmi Vilas Bank
South Indian Bank
United Western Bank
UTI Bank
Comparative study of promotional strategies adopted by
public and private sector banks in India
Introduction
In financial services, people are primarily bothered about
security of their funds and default risks. After the year 1969, the
deposits of banks increased more than 80 times as a result of the
nationalisation of banks. Paul Cox, (2007) revealed a fact that
financial service providers are not perceived highly trusted, so
that they might have difficulty in selling risk-based products.

The effort to promote banking business is quite distinguished

affair. At present, it has become very tricky due to the changing
trends of industry, increasing competition and efficiency of
regulatory environment, and the financial system. The
complexity in the banking services is also an issue of vital
importance. This is the time when banks are offering new and
innovative services, frequently in the market. The content of
promotional tools should help the customer in making most
valuable decision. This can be firmly said that well-designed
promotional/marketing strategies are very important to
promote banking services effectively. In marketing any product
or service, customer satisfaction has been given the prime
importance. The most frustrating aspect of bank marketing are
lack of management support, lack of inter-departmental
cooperation, crisis management, government intrusion and
advertising & media problems (Berry & Lindgreen, 1980). Sarin
& Anil (2007) recommended that manpower in service
organisations must work with the focus of satisfying the
customer. Banking should bring out the areas requiring
improvement and which further throw light on the measures to
improve the quality of services. Promotional packages are very

important for financial service industry (Ananda & Murugaiah,

2003). Thus the orientation of banks should be with a much
wider focus in relation to consumer and market needs, and the
consequent marketing strategies. In banking the temporal and
spatial dimensions are perceived as more important than
traditional dimensions based on outcome and process elements
(Kristina

Heinonen,

2006). Tokunbo

Simbowale

(2005)

examined the usage of marketing concepts & techniques and

recommended that a well-structured marketing department in
banks is essential for profitability & effectiveness.
While formulating marketing strategy, a bank should focus
attention on
(i)
(ii)
(iii)
(iv)
(v)

consumer sovereignty,
attitude,
responsiveness and personal skills of bank staff,
revitalizing the marketing department,
top management support to the marketing

department,
(vi) participation of marketing personnel in key bank
decisions.
These factor are very helpful to formulate a marketing strategy.

The objectives of the study are:

(i) To know about the various promotional tools of Private and
Public sectors banks in India
(ii) To make a comparative analysis of customers' perception for
promotional strategies of private and public sector banks in
India
(iii) To find out the key promotional tools for banking services
on the basis of customers' responses
The Most Effective Promotional Tools for Banking Services
1

Advertising on Television

Advertising in Newspapers

Personal Selling/Personal Contact

In Journals and Magazines

Tele Calling by Sales Persons

Outdoor Advertising Hoardings etc

Schemes/Gifts/Prizes for Customers

Pubic Relations/Events/Programmes

Online Marketing

10

Pamphlets/Propaganda

11

Letter/Mail with Relevant Material

12

Publicity

Table 1: Promotional Strategies by Public and

Private Sector Banks

Public Sector Private Sector

Promotional Tool

Bank

Bank

Advertising on

Yes

Yes

Yes

Yes

Television
Advertising in
Newspapers
Personal Selling/

No

Yes

Yes

Yes

Personal Contact
In Journals and

Magazines
Tele Calling by Sales

No

Yes

Yes

Yes

No

Yes

Yes

Yes

Persons
Outdoor Advertising
Hoardings etc
Schemes/Gifts/Prizes
for Customers
Pubic Relations/
Events/Programmes
Online Marketing/

Yes But Few

Yes

E-Mail
Pamphlets/Propaganda

No

Yes

Letter/Mail/ with

No

Yes

Relevant Material

Publishing News in

Yes But Few

Yes

Newspapers

Table 6: Comparative Analyses of Public and Private Sector

Banks on
the Basis of Volumes of Advertising, Truthfulness in
Advertising, and
Effectiveness of Advertising.
Statements

Weighted

SD

Mean Score
(out of 5)
Private Banks do More Advertisement

3.81

1.15

Private Banks Ads are More Effective

3.51

1.18

Public Sector Banks Ad's Information More True 3.62

0.97

DIFFERENCES BETWEEN PUBLIC SECTOR AND

PRIVATE SECTOR
The following are the major differences between public sector
and private sector:
1. Public Sector is a part of the countrys economy where the
control and maintenance is in the hands of Government. If
we talk about Private Sector, it is owned and managed by
the private individuals and corporations.
2. The aim of the public sector is to serve people, but private
sector enterprises are established with profit motive.
3. In the public sector, government has full control over the
organizations. Conversely, Private Sector companies,
enjoys less government interference.

4. The employees of the public sector has the security of the

job along with that they are given the benefits of
allowances,

perquisites

and

retirement

like gratuity,

pension, superannuation fund etc which are absent in the

case of the private sector.
5. In the private sector working environment is quite
competitive which is missing in the public sector because
they are not established to meet commercial objectives.
6. In general Public Sector uses Seniority for promoting
employees, however, merit cum seniority is also taken as a
base for promoting employees. Unlike Private Sector,
where performance is everything and so merit is taken as a
parameter to promote them

REFERENCE

www. Wikipedia.com
www. Google.com
www. Encyclopedia.com

CONCLUSION
Promotion has different aspects for different industries, products
and services. Its final goal is to communicate positive word of
mouth among existing and potential customers about the
corporate, product and service. In banking the customers must
be ensured that services provided by a particular bank have been
designed to give them maximum value of their money. In brief,
it can be said that in India wherever the dilemma of private and
public sector comes always two things are considered. Public
sector is more reliable but not so good in the quality and
innovativeness. Private sector is not considered so reliable, there
may be hidden charges in the services and false and misleading
information in the advertising but they are better in the service
quality. Private sector banks must be more true and reliable first.

They have to win the hearts of the customers, after that they will
be able to win minds as well. In traditional tools of promotion
both sectors' banks are almost same.