Public and private sector banks: convergence in performance
Abstract
This article examines the
performance of public sector
banks and the new private sector
banks over the period 2005-06
to 2010-11. What emerges is that
while the relative performance of
public sector banks had improved
signifi cantly by 2005-06, the new
private sector banks had moved
ahead by 2010-11. It appears that
early gains by public sector banks
may have been the result of initial
slack in the system and new gains
will require radical changes in
human resource management and
corporate governance practices.
Such reforms are urgent in the
light of the proposal to issue new
banking licences.
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