(d)  To what extent do macro-factors have an impact on the net interest margins of different categories is perhaps an area requiring closer attention. In the last three to four years, there has been some decelerating of growth, especially in traditional brick and mortar type manufacturing sector where public sector banks are heavily exposed.
They have been opened to international competition and are subject to domestic restructuring. These affect the portfolio of older banks which are mostly PSBs, disproportionately. (e)  As regards staff costs, new private sector banks have enormous flexibility of entry and exit. The public sector banks simply do not have the freedom.