Private vs Public Sector in India (Exemplified with Icici & Sbi Banks))
PREFACE
Liberalization in India started during 1991-92.Before this period of time the country did not experienced any big economic crisis. But the year 1991-92 turned out to be exceptionally difficult for the country 's economy. The country was facing serious problems of foreign exchange and was on the brink of default. The inflation rate rose to it 's peak at 16.7% in August 1991.Growth of real GDP (Gross Domestic Product) decelerated sharply.
The Government which took the office in June, 1991,responded to this crisis situation . In doing so they had to formulate certain new policies and at the same time make changes to some existing policies. The new economic policy (NEP) set up at that point of time are known as policies of liberalization and the change itself is known as liberalization
Discussing anything about liberalization automatically draws our attention towards the financial sector and thereby towards the banking sector of the economy concerned. This is so because this sector is directly associated with the economy. Any change in the economic parameters automatically gets reflected in this sector.
Hence, I choose the banking sector of India to compare between the public sector and the private sector ,.
Over the years after independence, the banking sector in India was primarily dominated by the state banks. They played a significant role in the development process of the c9ountry 's economy. The period 1969-1990,witnessed rapid branch expansion and adequate flow of credits to all sectors. The mid eighties saw the commercial banks to consolidate the gains of expansion .At this point of time 90% of the banks were in public sector, being closely regulated in all respect.
But till 1990-91 India has not faced any major economical crisis. Though during 1990-91 there was pressure in the external sector, with the current account deficit and external debt servicing reaching large proportions .At this point of time an overall change in the
Liberalization in India started during 1991-92.Before this period of time the country did not experienced any big economic crisis. But the year 1991-92 turned out to be exceptionally difficult for the country 's economy. The country was facing serious problems of foreign exchange and was on the brink of default. The inflation rate rose to it 's peak at 16.7% in August 1991.Growth of real GDP (Gross Domestic Product) decelerated sharply.
The Government which took the office in June, 1991,responded to this crisis situation . In doing so they had to formulate certain new policies and at the same time make changes to some existing policies. The new economic policy (NEP) set up at that point of time are known as policies of liberalization and the change itself is known as liberalization
Discussing anything about liberalization automatically draws our attention towards the financial sector and thereby towards the banking sector of the economy concerned. This is so because this sector is directly associated with the economy. Any change in the economic parameters automatically gets reflected in this sector.
Hence, I choose the banking sector of India to compare between the public sector and the private sector ,.
Over the years after independence, the banking sector in India was primarily dominated by the state banks. They played a significant role in the development process of the c9ountry 's economy. The period 1969-1990,witnessed rapid branch expansion and adequate flow of credits to all sectors. The mid eighties saw the commercial banks to consolidate the gains of expansion .At this point of time 90% of the banks were in public sector, being closely regulated in all respect.
But till 1990-91 India has not faced any major economical crisis. Though during 1990-91 there was pressure in the external sector, with the current account deficit and external debt servicing reaching large proportions .At this point of time an overall change in the
Bibliography: Investment decisions in Indian Public Sector o By Dr. P. K . Chakravarti www.statebankofindia.com www.icicibank.com www.khojindia.com www. Business-standard.com www.ircc.iitb.ac.in Economy of India- Wikipedia, the free o encyclopedia file www.fecolumnists.expressindia.com