1: public vs private ownership of banks •  Abstracting from ideology, from a pragmatic perspective, both public and private banks have respective advantages and disadvantages. Private ownership brings competition, professionalism and operational efficiency. Public ownership makes it easier to pursue social objectives such as mass banking, financial inclusion etc.
•  Private banks have comparatively greater freedom in terms of recruitment, salary and compensation. On the other hand, PSBs are perceived to offer more job security, and consequently, employee turnover is lower. •  PSBs dominate the banking sector in India and will continue to be dominant in the foreseeable future. However, these banks require substantial capital to support growth.