Write the differences between Private Sector Banks and Public Sector Banks.

Question

Difference between Public Sector Banks and Private Sector Banks:BasicPublic SectorPrivate Sector1.OwnershipPublic Sector...

Accepted Answer

Difference between Public Sector Banks and Private Sector Banks:BasicPublic SectorPrivate Sector1.OwnershipPublic Sector...

Basic	Public Sector	Private Sector
1.Ownership	Public Sector banks are owned by the Govt. either directly or through the RBI.	Private Sector banks are owned by private individuals or business corporations.
2. Setup	These banks are setup under the special act of Parliament.	These banks are setup under the Companies Act.
3. Aim	These banks aim at saving the Society.	These banks are driven by profit motive.
4. Foreign Bank	Public Sector banks does not include foreign bank.	Private Sector banks may be Indian Banks as well as foreign banks.
5. Area of operation	These banks operated in rural, Semi-urban and Urban areas.	Private Sector banks mainly operated in Semi-urban and Urban areas.
6. Capital	In public sector banks more that 50% of capital or full capital is supplied by the Government.	But, in private sector banks, all total capital is supplied by the shareholders of the bank.