investment

1. INESTMENTAVENUS
IN PUBLIC SECTOR BANKS

2. INTRODUCTION:
◦ Public sector banks are those in which the government holds more than 50% of the
total stock.
◦ The government formulates all the financial guidelines for public sector banks.
◦ The public sector banks operate under the government to inspire trust in the
depositors that their money is safe.

3. ◦ It plays a key role in the economic development of a country
◦ It helps in providing essential services to the citizens
◦ It provides employment opportunities
◦ It helps in the development of infrastructure
◦ It encourages private investment
Importance:

4. HISTORY:
◦ As India embarked on planned economic growth soon after
independence, it, like any other country, required a strong and efficient
financial system to meet the diverse requirements of credit
and development.
◦ The rapid expansion of the banking system in terms of presence and
penetration in the two decades following bank nationalization in 1969
was impressive.
◦ By the 1990s, public sector banks controlled 90% of the country's
banking business.

5. OBJECTIVES:
The objectives of the public sector in India can be divided into three
categories:
◦ Social Objectives
◦ Economic Objectives
◦ Political Objectives

6. FUNCTIONS:
◦ Mobilizing and pooling savings
◦ Monitoring Investments and exerting corporate governance
◦ Facilitating Trading, Diversification and Management of Risks
◦ Facilitating Exchange of Goods and Services

7. ADVANTAGES: DISADVATAGES:
◦ Deposits offer a high-interest rate.
◦ Loans with low-interest rates.
◦ Employees have complete job security.
◦ Provides services to a large number of
customers.
◦ Inability to make a major financial
decision in a timely manner.
◦ Customers receive less personalized
service.
◦ There have been far too many
complaints about the employees' poor
service.
◦ The majority of public-sector banks are
embroiled in major
corruption scandals.

8. CHALLENGES:
◦ Generalization in jobs
◦ Lack of competition
◦ Social burden
◦ Political pressure
◦ Job security

9. CONCLUSION:
◦ Since public sector banks are owned by the government, the
government usually injects new capital into them, allowing them to
grow.
◦ People come from all over the country to use these banks for loans or
to store their money in the lockers.
◦ Public Sector Banks also provide a variety of programs to assist their
customers, and their fees are typically lower than those charged by
Private Sector Banks.