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Disadvantages of public sector organisation
- Inefficiency results due to the size of the organisation.
- There is a lack of incentive for employees to perform if there is no share in the profit or there is an absence of other motivators such as productivity bonuses - accelerated promotion; (this factor can also apply in the private sector if the employee is not given any incentive to perform).
- Losses must be met by the taxpayer.
- Political interference can occur.
- They interfere with the free market forces.
- There may be difficulties in finding someone to deal with complaints, though this factor is applicable to any large organisation.
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Function of public sector banks?
function of public sector in india
Classification of Banks in India?
Classification of Banks in India is done into four main classes. The classes include commercial banks, savings banks, public sector banks and private sector banks.
Why private sector bank is better than public sector bank?
Private sector banks are better than public sector banks in the following aspects:They are more customer friendly and customer oriented. If they don't get customers they go out of business (Unlike public sector banks that would stay in business anyway because they are owned and run by the government)They offer more facilities than public sector banks (Because of the same reason in point a)They offer better interest rates for depositsThey offer a wider variety of products.I am not saying that public sector banks don't do all these things, just that they don't do it as aggressively or effectively as private sector banks because their existence is not dependent on customers whereas for private banks they will be bankrupt if customers refuse to bank with them.
What are the advantages of public sector banks?
Keep our mouth shut
What is a 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.
Function of public sector banks?
function of public sector in india
What are the two types of banks?
types of commercial banks are: 1) public sector banks 2) private sector banks....
What is the Importance of public sector banks in India?
Public sector banks are banks that are owned by the government of India. The most important use of public sector banks is the fact that, it is used by the government to dispense the pension amounts for the retired employees of state and central government if India.
What are the two types of commercial bank?
types of commercial banks are: 1) public sector banks 2) private sector banks....
Classification of Banks in India?
Classification of Banks in India is done into four main classes. The classes include commercial banks, savings banks, public sector banks and private sector banks.
What are the disadvantages of a public limited sector?
hello mate
What are Functions of public sector bank?
A Public Sector bank is one in which, the Government of India holds a majority stake. It is as good as the government running the bank.Since the public decide on who runs the government, these banks that are fully/partially owned by the government are called public sector banks.
Why private sector bank is better than public sector bank?
Private sector banks are better than public sector banks in the following aspects:They are more customer friendly and customer oriented. If they don't get customers they go out of business (Unlike public sector banks that would stay in business anyway because they are owned and run by the government)They offer more facilities than public sector banks (Because of the same reason in point a)They offer better interest rates for depositsThey offer a wider variety of products.I am not saying that public sector banks don't do all these things, just that they don't do it as aggressively or effectively as private sector banks because their existence is not dependent on customers whereas for private banks they will be bankrupt if customers refuse to bank with them.
Public sector banks in India?
State Bank of India
What are the advantages of public sector banks?
Keep our mouth shut
What is the fdi limit in public sector banks in india?
26%
Why private bank sector are performing better than public bank sector?
Private Sector banks are owned by individuals or a group of individuals who can take policy and business decisions quickly/easily when compared to public sector banks where policy decisions have to be approved by the government of India. Hence private sector bank are able to offer attractive plans and offers to customers and hence are growing at a faster pace than public sector banks.
