Which is the best place to work: private banks or government banks?

Updated on : December 6, 2021 by Bo Warner



Which is the best place to work: private banks or government banks?

  • PRIVATE BANKS:

PROS:

Competitive work environment:

They provide a highly competitive and exciting work environment to grow as a professional. Professionals are encouraged to take on challenging tasks and enterprising individuals are rewarded accordingly.

Performance-based incentives:

Private banks often offer a series of performance-related incentives in both monetary and non-monetary forms. This promotes a spirit of competitiveness in employees and helps boost their morale even further.

Instant job recognition:

Some of the best private banks focus on giving credit over experience and the best results.

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  • PRIVATE BANKS:

PROS:

Competitive work environment:

They provide a highly competitive and exciting work environment to grow as a professional. Professionals are encouraged to take on challenging tasks and enterprising individuals are rewarded accordingly.

Performance-based incentives:

Private banks often offer a series of performance-related incentives in both monetary and non-monetary forms. This promotes a spirit of competitiveness in employees and helps boost their morale even further.

Instant job recognition:

Some of the best private banks focus on credit over experience, and high performers often receive instant recognition for their work. The best part is that recognition and rewards go hand in hand.

Hands-on learning experience:

More emphasis is placed on acquiring the necessary skills and knowledge on the job rather than relying solely on training programs. Although those who perform well could be selected for prestigious training programs at some of the best institutes.

Technology-oriented perspective:

People with a keen interest in technology are among the preferred choices of today's premium private banking institutions. This aims to strengthen its resources to continue the digital expansion of banking services.

Accelerated career growth:

Professionals can grow at a rapid rate and acquire higher positions along with higher pay in the early years. This drives even average artists to perform well and keep looking for the next promotion.

Additional benefits:

Employees are also offered special benefits that include higher interest rates on fixed deposits and paid vacations, among other things.

CONS:

Longer working hours:

Working hours tend to be longer and the emphasis is on meeting goals rather than leaving the office on time. This is one of the downsides of almost any competitive job and, in the long run, it can potentially affect an individual's health and personal life.

Lower job security:

This is one of the biggest disadvantages of private banking that, despite occupying the best positions, there is no guarantee that it will not be asked to leave, if the situation demands it. Some of the possible reasons could include that the banking industry or banking institution in question is going through a bad phase. This is exactly what happened in the wake of the 2008 crash when thousands of private bank employees were shown the door.

Average artists can suffer:

Most job roles are cut short for entrepreneurs where there is little room for slow or average performers. While not everyone can be a top performer, those who don't perform very well or feel comfortable taking on challenging roles may not benefit much.

  • PUBLIC SECTOR BANKS:

PROS:

Less competitive work atmosphere:

In general, the work environment is comfortable and there is usually no rush to meet some predefined goals. Professionals have enough time to prepare for the position and learn things at their own pace.

Regular training programs:

There is a lot of stress in conducting training programs at regular intervals to help employees improve their financial, personnel, and technical skills and perform better.

Greater job security:

There is little risk of a sudden layoff waiting around the corner, even if one person's performance is not up to scratch. This may not sound like the best of incentives in terms of encouraging employees to do better, but it certainly attracts a lot of talent looking for secure jobs. In an event similar to the 2008 crash, there is little chance of being sent home due to market conditions, unlike with private banks.

Best working hours:

Working hours are predefined and there is no rush to meet goals, no overpowering sense of competition, and no additional hours of work. Provide enough time to spend with family and friends.

Attractive additional benefits:

According to the professional designation, public sector banks define certain additional benefits. These include a home and car for higher-ranking professionals, along with some common benefits for most roles. These include a lower interest rate on loans, a higher interest rate on fixed deposits, and pension packages, among other things. However, these benefits may vary depending on the professional role and the institution with which you work.

CONS:

Less reward for competitive people:

A career in public sector banking could be a relatively less exciting experience for competitive individuals looking to accomplish more in a short period of time. There would be comparatively fewer rewards for good performance and this may not work well for more ambitious people.

Slow career progress:

Professional growth would be quite lethargic with most promotions and salary increases based on experience rather than merit. Unlike private banks, seniority would be required for the desired career advancement, which can be a bit daunting, although there are other benefits that could outweigh this to some extent.

Less motivation to perform better:

With little competition and fewer performance-based rewards, there is little motivation for average performers to do better and prove themselves.

Work-life balance:

Private banks are relatively worse in this regard with longer and more intense working hours that tend to affect work-life balance. Usually there is little time left for recreation or relaxation and it becomes difficult to spend quality time with friends and family.

Employees of the PSU bank have comparatively better working hours, which leaves a lot of time to spend with the family, for recreation or other activities. The lower competition at work also helps them enjoy a more balanced existence compared to the employees of private banks.

conclusion

Choosing a career is not a simple decision, as there are a number of complex factors that must be considered and weighed against each other. However, the approach should preferably be simple and based on the individual's skill set, interests and capabilities more than anything else. Usually people are driven by the herd mentality to get into a career that they might regret later.

Banking can be a demanding career for any individual, requiring presence of mind, good communication skills, and an interest in finance and accounting. Depending on the role, skill sets can vary, but as we've already discussed, those who believe in instant recognition and performance-based rewards should opt for a career in private banking.

However, for long-term job security and better working hours, public sector banks might be a better option. Those interested in technology-assisted banking would benefit from either of these options, as online banking continues to grow at an exponential rate for both private banks and public sector banks.

In the end, it would be important to carefully weigh the pros and cons and then try to align them with the individual perspective of professional life in order to make the right decision.

The grass always looks greener on the other side of the fence.

I started my career in a multinational. One of the main multinational telecommunications companies. At first I was enjoying my job and earning decently.

Then Sarkari Naukri (Government Work) mistake hit me hard and I started preparing for all kinds of competitive exams and I passed some of them.

Then I worked in a government job. Again, I enjoyed it at first as the job profile was different. I left my job well after 2 years of joining.

I tried to work on my own idea and joined a startup as things weren't going the way I wanted them to. There were some financial c

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The grass always looks greener on the other side of the fence.

I started my career in a multinational. One of the main multinational telecommunications companies. At first I was enjoying my job and earning decently.

Then Sarkari Naukri (Government Work) mistake hit me hard and I started preparing for all kinds of competitive exams and I passed some of them.

Then I worked in a government job. Again, I enjoyed it at first as the job profile was different. I left my job well after 2 years of joining.

I tried to work on my own idea and joined a startup as things weren't going the way I wanted them to. There were also some financial limitations. In this job, the environment was dynamic and there were also some new challenges. I enjoyed working there when it seemed like things were starting to go in my favor after a difficult year (2017). I left work in search of greener pastures.

He joined another job. Currently working there. It seems that I have completed a whole cycle of works. If I had been working in my first company or if I had not left the telecommunications sector. I may earn a lot more than I do now, but then I couldn't write this answer.

I have gained a lot of experience through a series of career adventures and my experience says that Job is a job. Take it as one. Don't be too optimistic about any job. Each job has its own set of pros and cons. You are doing a certain job and you get paid for it. That is all.

I suggest that you sit, think, and write about your strengths, weaknesses, likes and dislikes. Also think about the kind of work you want to do and what you can do in the long run. Ask what you want in life. Is it stability, money, travel, teaching, research, etc.? So ask these questions and find a job. Take an interest in work.

I discovered that both private and government jobs are two sides of the same coin, as both are "working for someone else."

Time and time again, these kinds of questions are asked and it is believed that the work of public sector banks is better due to job security and minimal stress. I don't understand why you are seeking job security for non-compliance or improper performance. In PSB there is also a goal-oriented approach and it is wrong that performance is not rewarded / responded to. There are many possibilities for promotion. He had seen many senior executives who have risen to the top positions from the entry level or the junior level. Instead of running away from work or escaping responsibility, you must accept the challenge. if you h

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Time and time again, these kinds of questions are asked and it is believed that the work of public sector banks is better due to job security and minimal stress. I don't understand why you are seeking job security for non-compliance or improper performance. In PSB there is also a goal-oriented approach and it is wrong that performance is not rewarded / responded to. There are many possibilities for promotion. He had seen many senior executives who have risen to the top positions from the entry level or the junior level. Instead of running away from work or escaping responsibility, you must accept the challenge. If you have sincerity and dedication, it always pays.

Above all, these are not just the two jobs available in the world. Many other jobs can even be better than both, even in the financial sector.

Here, you need to remember that the monetary benefits are sometimes much better in the private sector.

Private banks are likely to have more latitude with basic policies as it is left to the discretion of the Board of Trustees and management or management. Government banks are generally regulated and you would have to deal with a lot more reporting and bureaucratic regulations. Government positions have traditionally offered good benefits and stability, but this can vary depending on the political climate. You can consider employment at the Credit Union versus employment at the bank. A credit union is owned by its members, which in the banking world amounts to "buying locally." Hope this has answered your question.

The bank is a bank, but the style of service delivery is different in both. Both have their pros and cons that you can take from anyone who works in that industry. Private banks focus more on customer, sales, and revenue growth, while public sector banks have less of these. The pressure is of a different kind on public banks, which you can ask anyone who works with public banks. Private banks give you a good amount of money after some time of service and if you are decent in your trade, you also get promotions. But beware of work pressure, which is right for any job.

The work of both banks is almost the same. They both have enough workload. To a higher level.

If you joined as an employee in any government bank, then you don't have enough work to do and you have no goal.

But in private banking you also have a goal.

Government bank transfer or in rural beaches. Because in the rural service of the government bank it is necessary.

But pvt banks are not in rural areas, so you live most of the time in urban or urban areas.

Govt Banking Job provides the best job security and stability in your life. Less stress compared to working in a private bank.

Private banking jobs less security, less stability in life and but good growth possibilities if you are very smart and wired for it.

In the private sector more work-related stress. The objective will be in the private sector, you have to achieve it, otherwise you will not get promotion.

You can ask any private bank employee and government bank employee. They can tell you the whole truth.

Both are good. If a person is sincere and good at his job, then he has no problem anywhere. The main problem is getting the job. The private culture needs a dedicated and sincere worker and consequently adequately rewarded, but in government, you will be rewarded in the routine. It is my personal point of view just for me. Ultimately, the decision is yours. Thanks

Working in a nationalized bank is better than in a pvt bank. Stability, retirement benefits, staff loan facilities…. Possibility of promotion if you have / acquire specialized knowledge such as CA, bachelor's degree, software programming or such.

A. Let's say you start very young, between 21 and 24 years old:

  1. Even if you start with lower pay scales, it will still approach 40K. A 3% increase in base salary, DA raises twice a year, and a salary review every 10 years.
  2. By the time you hit 30, that will become more than 80,000 a month. In the meantime, you will enjoy life, which is meant for that exact purpose. You will enjoy the same life that you had in college, in school.
  3. The government pays for your medical expenses, including your children's education, and of course job security is a given.
  4. You will do a service to your country, you will earn money and you will enjoy your life.
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A. Let's say you start very young, between 21 and 24 years old:

  1. Even if you start with lower pay scales, it will still approach 40K. A 3% increase in base salary, DA raises twice a year, and a salary review every 10 years.
  2. By the time you hit 30, that will become more than 80,000 a month. In the meantime, you will enjoy life, which is meant for that exact purpose. You will enjoy the same life that you had in college, in school.
  3. The government pays for your medical expenses, including your children's education, and of course job security is a given.
  4. You will do a service to your country, earn money, and enjoy your time in the process.
  5. You are not going to make up these years. Are you sure you want to change it to enrich the multinationals? No amount of money returns the time spent.

B. Let's say you are a little late to the party, between 26 and 30:

  1. Most of you will want to start a family now. And that will bring responsibilities. I think you can do the math here.
  2. The government needs young blood to create an environment comparable to that of the private sector. Looking at the current scenario, the government pushes the Public-Private Partnership, most likely this is the last generation to experience government jobs in the way we know today. I believe that you can be the bridge between the two worlds and witness how it is built first hand.
  3. It's easier to get government job loans, you can build your dream home, buy the car you liked in your college days, and you won't have to worry about missing payments. Personally, I am not a fan of loans. But hey, it's your life.

C. Some important facts and tips:

  • Not all government jobs are the same. Some have views like these:
  • And offices like this: this is my office by the way;)
  • Do not include yourself in the rat race of SSC, IBPS and RRB. Look carefully on the Internet for jobs that have a unique value. Strive for them. You will earn a little less money but a lot of happiness.
  • Not many public servants look for a higher paying job once they are selected. Use this to your advantage, instill a habit to slowly improve your skills, and visualize yourself landing a multitude of jobs in no time.

Disclaimer for internet trolls: these are purely my ideas and in no way am I against any other type of work. Please behave yourself in the comment section!

Thank you for your time and I will be happy to answer any questions.

Image Credits: My Phone Gallery.

Edit1: Wow! 100K views and more than 800 votes in favor. That too in a few days. I did not expect. Thank you all. I am humiliated. I have noticed that some people disagree with my perspective. It's okay as long as you maintain decorum.

Edit2: My answer was removed by quora moderation. I appealed and they returned the answer. Perhaps the reason was that I did not include the credits of the images. I have done it now.

Edit3: Thanks for 1.5K upvotes. Many people criticize the salary and benefits of a government job. Don't worry, just wait for the next pay commission recommendation in 2025.

What is the difference between the public sector and private sector banking?

Public sector banks are those in which the majority of the stake in the bank is in the hands of the government. Where, as in private sector banks, the majority is in the hands of the bank's shareholders.

People have a clear idea, if we say that SBI is a public sector bank and ICICI is a private sector bank.

Both types of bank offer the same services, however the charges differ and therefore the quality and duration of the services provided. You can also see the difference between the interest rates.

Public Sector Banks and Private Sector Banks: A Definition

Public sector

Keep reading

What is the difference between the public sector and private sector banking?

Public sector banks are those in which the majority of the stake in the bank is in the hands of the government. Where, as in private sector banks, the majority is in the hands of the bank's shareholders.

People have a clear idea, if we say that SBI is a public sector bank and ICICI is a private sector bank.

Both types of bank offer the same services, however the charges differ and therefore the quality and duration of the services provided. You can also see the difference between the interest rates.

Public Sector Banks and Private Sector Banks: A Definition

Public sector banks:

The public sector bank is a bank in which the government owns a significant part of the shares. Let's say, for example, that SBI is a public sector bank, the government's stake in this bank is 58.60%. Similarly, PNB is a public sector bank, the government has a 58.87% stake. Generally, in public sector banks, government holdings exceed 50 percent.

Public sector banks are also nationalized banks.

In nationalized banks, the government controls and regulates the operation of the bank.

Some examples are SBI, PNB, BOB, OBC, Allahabad Bank, etc. However, the government continues to reduce stake in PSU banks as they sell shares. So, to that extent, they can also become minority shareholders in these banks.

These, like their counterparts, are listed on the Indian exchanges.

Private sector banks:

In these banks, most of the capital is owned by private bodies, corporations, institutions or individuals rather than the government. These banks are managed and controlled by private developers.

After liberalization in the 1990s, banks like ICICI, HDFC that got the license are the private sector banks of the new age. Due to the improvement of their service offerings, they give stiff competition to public sector actors.

Of the total banking industry in India, public sector banks make up 72.9% share, while the remainder is covered by private players. Regarding the number of banks, there are 27 public sector banks while 22 private sector banks.

As part of its differentiated banking regime, the RBI, the main banking body, has licensed payment banks and small financial banks or SFBs. This is an attempt to boost the government's financial inclusion campaign.

As a result, Airtel Payments Bank has been created and Paytm Payments Bank Limited will start operations in May 2017.

The main differences between a public and private sector bank

• Shareholders

a) In a public sector bank more than fifty percent of the participation is in the hands of the Government.

b) In the private sector the majority of the participation is owned by private shareholders, including corporations and individuals.

• Interest rate

Interest rates on deposits offered by public sector banks are almost the same as those of private sector banks. However, new age banks like Bandhan Bank, Airtel Bank are offering slightly better interest rates compared to their counterparts.

In the case of loans, interest rates are slightly lower, as, for example, SBI introduced a new mortgage loan offering for its clients with an interest rate of 8.35% for a bill size of up to Rs. 30 lakhs.

• Rates and service

Private sector banks have become famous for providing better service, yet they charge for the additional services they provide.

The commissions and charges of public sector banks are lower, as in the case of balance maintenance. Many public sector banks are still improving their service offerings.

• Customer base:

Most public sector accounts are opened for government employees for their salaries, fixed deposits, lockers, etc. Their customer base is also relatively large compared to their private sector peers as they have been in the domain for a long time and have managed to win over clients. confidence.

While private sector banks in India target company employees, for their payroll, credit card and net banking accounts.

Comparison of the financial performance of public and private sector banks

In terms of financial performance, PSU banks lag behind. When comparing most of the parameters, such as non-performing assets or NPAs and net interest margins, private sector banks tend to be much better placed.

For example, some of the private sector banks such as HDFC Bank and IndusInd Bank have a very low level of non-performing assets, compared to the public sector or state-owned banks.

Some of the banks like the government or public sector Bank of Baroda have reported record losses. Losses in the steel sector have compounded the nonperforming assets of public sector banks in India. The share prices of these banks are also on a higher side.

On the NPA front, to combat the problem of rising NPAs in public sector banks, an ordinance was passed to amend the Banking Regulation Act giving more powers to the RBI, so now banks must take action. fast against bad debts.

Another important factor is that, also in terms of capital adequacy, public sector banks are lagging behind, their private sector banking peers.

Recently, the government of India decided to inject fresh capital into some of the government-owned banks so that they are solvent and at the same time fully comply with Basel III, the global capital adequacy standards. The recapitalization of the banks will be carried out under the Center's exclusive Indradhanush 2.0 scheme.

An infusion with a melody of Rs. Rs 10 billion is earmarked for the sector in fiscal years 2017-18 and 2018-19.

It is expected that there will be some recovery from losses and that public sector banks will be able to compete with private sector banks in India.

Examples of public and private sector banks

Some of the public and government sector banks in the country include State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India, Canara Bank, Andhra Bank, Syndicate Bank, Allahabad Bank, State Bank of Mysore, Bank of Maharashtra , etc. .

Some of the largest private sector banks in the country include ICICI Bank, HDFC Bank, Yes Yank, IndusInd Bank, Kotak Mahindra Bank, and many others.

Opportunity, job security and other benefits

Public sector banks offer fewer opportunities, but job prospects are bright here with job security and pension benefits to be gained after retirement. Excluding pension benefits, private sector banks offer other retirement benefits, including gratuity.

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