Authors :
Harmanjot Singh Tajpuri
Volume/Issue :
Volume 10 - 2025, Issue 9 - September
Google Scholar :
https://tinyurl.com/33zndfc2
Scribd :
https://tinyurl.com/bdd7yvwt
DOI :
https://doi.org/10.38124/ijisrt/25sep187
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Abstract :
Bank privatisation in India has emerged as a major subject of economic discussion, especially with respect to
reforms to the financial sector. The government's initiative to diminish its ownership in public sector banks seeks to boost
efficiency, encourage competitiveness, and ease the burden of assets that fail to perform. According to some supporters, the
privatisation of banks will lead to technology modernisation, better management and governance, may enhance customer
satisfaction, hence improving the banking system in all aspects.
But there are still some issues that could be faced, especially in relation to financial wellness, employment issues, etc.
Concerns also rise regarding rural-urban participation, promotion efforts, lack of competition and the possibility that goals
will be more focused on earning profit rather than developing the economy. This paper critically analyses the difficulties
that may occur due to the privatisation of banks, such as accountability and impartiality, while there are some possible
advantages, like efficiency and growth. The main purpose of this study is to provide an overall, impartial, and accurate view
of the privatisation of banks in India in future.
References :
- S S Herwadkar , G Sonali , Rishuka, Privatisation of Public Sector Banks: An Alternate Perspective (RBI Bulletin , p. 77 - 88 Posted: 2022-08)
- M K Jain, Comparative analysis of private sector banks: An application of Camel model (International Journal of Trade & Commerce-IIARTC , volume 6 , issue 2 , p. 341 - 354 Posted: 2017)
- M Thomas, A Dynamic Theory of Public Banks (and Why it Matters), Review of Political Economy ( volume 34 , issue 2 , p. 356 - 371 Posted: 2022)
- Adam, C. S. and W. P. Cavendish. 1990. "Can Privatization Succeed? Economic Structure and Programme Design in Eight Commonwealth Countries." Oxford University.
- Bishop, Matthew, and john Kay. 1988. Does Privatization Work? Lessons from the UK. London: London Business School.
Bank privatisation in India has emerged as a major subject of economic discussion, especially with respect to
reforms to the financial sector. The government's initiative to diminish its ownership in public sector banks seeks to boost
efficiency, encourage competitiveness, and ease the burden of assets that fail to perform. According to some supporters, the
privatisation of banks will lead to technology modernisation, better management and governance, may enhance customer
satisfaction, hence improving the banking system in all aspects.
But there are still some issues that could be faced, especially in relation to financial wellness, employment issues, etc.
Concerns also rise regarding rural-urban participation, promotion efforts, lack of competition and the possibility that goals
will be more focused on earning profit rather than developing the economy. This paper critically analyses the difficulties
that may occur due to the privatisation of banks, such as accountability and impartiality, while there are some possible
advantages, like efficiency and growth. The main purpose of this study is to provide an overall, impartial, and accurate view
of the privatisation of banks in India in future.
