“A study of Job Stress among employees Of Public Sector Banks and Private Sector In

– A case study of State Bank of India (SBI) & Development Credit Bank (DCB) of

Mumbai”

Introduction:

The word stress has become a part and parcel of our daily life. It is common to all

individuals, males, females, business owners, business partners, housewives, teachers,

marketing personnel, sales personnel, students and so on. Thus it is difficult to think of any

person who does not have any stress in life. In other words we have to live with stress in

some form or the other.

Similarly work related stress is becoming a major issue and a matter of concern not

only for the employees but also for the employer or organizations all over the world.

Work related stress is a sort of negative reaction a person shows at work. It takes

place when the work pressure in the office or work place is more than the capacity or ability

of a person to manage it. Stress can also be due to various external factors over which an

employee has no control. It becomes worse when employee feel that there is no support from

other employees or from boss or top mg. Stress is also censed due to various problems such

as feeling inadequate, bullying or harassment it may also censed due to poor working

conditions or lack of job satisfaction.

People work in an organization because it gives them money income, satisfaction,

progress & development career advancement & life structure. Some amount of stress is

necessary at work because it provides us a challenge to overcome. It helps employees to

improve their performance & prepare for the challenges. However sometimes when the

demand or pressure becomes too much it leads to stress or distress which is bad for people.

Some amount of stress is essential so that we put our best to overcome the problem.

We often see students studying more during examination time & they manage to complete

their studies before the final day of the exam. Similarly in sports the athlete have stress

during competition as there is a situation of do or die for the title or final. We also see sports

person making mistakes during the game. All this is the result of stress.

Stress at work can be related to two areas namely

1) Work Contents

2) Work Context

1) Work Contents it refers to the nature of job contents when a particular job is

monotonous it may cause some stress as there is no change or innovation or dynamism in

work such type of jobs people or qualified people may not prefer. It may be suitable to lower

level employees but not to senior level staff for example when an employee joins a bank in

the position of Marketing executive and he is qualified MBA and when he is given a job at

the counter to distribute token to people coming for depositing or withdrawal of money. Then

the job contents are certainly monotonous and he may start developing dislike for the job.

Such job when given as a part of training or job rotation then it may not create any problem

for the employee.

2) Work Context Stress related to work context include the Human Resource Policies of

the organization. It include scope for career development, status and salaries, job security,

method of payment, promotion policies performance appraisal, conflicting role in the

organization, lack of skills / over skills, bullying, harassment, working conditions, poor

communication, lack of organizational leadership, lack of behavioral rule etc.

Thus stress at workplace can be attributed to two factors viz job contents & job contexts.

Both these factors are external to an employee. They have no control either on job contents or

job context. Thus only organizations can take measures to overcome these issues as the

ultimate benefit of this will go to the organizations in the form of higher efficiency, higher

productivity lower transaction cost, higher profitability, greater market goodwill, competitive

& successful organization.

Job stress is a costly affairs it carries price tag of us industry at 300 billion USD annually due

to

1. Many accidents

2. Higher rate of absenteeism

3. Higher employee turnover.

4. Lower efficiency & productivity

5. Higher Medical cost.

6. Higher workers compensation

Job stresses can also be related to

1) Worker characteristics

2) Working conditions

1) Worker Characteristics stress is highly personalized one person may show higher

rate of stress under a given working condition than other person. It is related to physical &

mental characteristics of an individual. For example one person may feel tired after 8 hrs of

work while other person may feel tired after 12 hrs of work. Thus physical & mental

capacities of the people differ medley. That is why in an organization all employees may not

show the same tendency to specific work related stresses. Some may feel the pressure of

work while others may not. Thus individual characteristics are the main determinant of stress.

2) Working Conditions Good working conditions contribute to higher effeciency &

higher productivity. It also result in greater job satisfaction among the employees. It

motivates employees for better performance Management can create better working

conditions to overcome this problem. Working conditions include nature of the job,

organization rules & regulations, timings, office design & layout, ventilation, lighting,

furniture, fixture and so on.

Links and inducers of stress

Link to high absenteeism, poor decision making & low morale.

Induced by our dietary habits.

Lack of fitness & inability to relax.

What is stress

Whenever work or non work demands exceed an individuals coping abilities some form of

stress occurs.

Stress is any action or situation that upsets the body's normal equilibrium.

Stress is a phenomenon that occurs across the world.

Stress is a natural & necessary component of everyday life for a normal human being.

Stress is often thought to be individualized response.

Stress also varies from time to time for each individual.

The perception & effects of stress are cumulative in nature & remain long term.

Stimulus definition of stress suggests that some stimuli or force acts on us & causes us to

react positively or negatively.

Stress can also be defined by the response we make to the stimuli around us.

In the stimulus definition, stress is an external agent or stressor. In the response definition

stress involves the consequences. Both definitions are correct & depend on the perception

and approach.

Definitions of stress

1) Lazarus defined stress as a general class of problems which deals with demands

taxing the psychological, social, physiological systems and responses of these systems.

2) Engelhard (1972), Lewis (1970) defined stress as an emotional state with the

subjectively experienced quality of fear or a closely related emotion (terror, horror, alarm,

fright, panic, trepidation and dread, scare).

3) Spiel Berger (1971, 1976) pointed out that the terms anxiety and stress have been

used interchangeably in the literature.

4) Malik (1976) defined stress as the nonspecific response of the body to any demand.

5) Lee David (1976) noted that stress occurs where there are demands on the persons

which tax or exceed his adjective resources.

6) Stress likely anxiety has been defined as a stimulus, a response and an intervening

state of the individual. (Khubalkar 2008)

7) Lilhave R (2008) noted that stress in any event in which environmental or internal

demands (or both) tax or exceed the adaptive resources of an individual, social system or

tissue system.

Symptoms of work Related Stress

Work related stress can cause due to psychological, emotional physical & behavioral

problems. Each person reacts differently to stress in different ways depending on his

personality.

Some common psychological symptoms include.

Cannot cope up with work.

Cannot concentrate on the task.

Lack of confidence.

Lack of interest & motivation.

Feeling disappointed with self.

Cannot take decisions.

Some emotional symptoms are

Short temper

Feeling overwhelmed

Changes in mood

Higher emotional reaction

Depressed feeling

Some physical symptoms are

Pains & Ache

Constipation

Indigestion & nausea

Headache

Weight changes

Chest pain

Some behavioral symptoms are

Sleeping too much or less

Isolating from others

Eating more or less

Smoking, drinking, drugs.

Perception of stress

Some of the common perception of stresses are

Often rush to get things done

Try to be in many places at one time.

Take official work home.

No time for personal life

Lunch not taking in time.

Don't avail all holidays due or entitlement

Work more time / long hours

Some other perception of a stressful events are :

Heartbeat increases

Blood pressure rises

Breathing rises

Liver releases stored sugar into the blood.

Adrenaline & hormones released into blood

Muscles tense

Pupils dilate

Blood flow increases to brain

Body perspires.

Stress & Disease

Disease = S X C X F

Where

S = Emotional Stressors

C = Personal stress, managerial style & general state of health.

F = Other factors such as environment, medical history, genetics etc.

Stress Management

Stress mgt refers to the combination of various strategies for

Building up general health through proper nutrition, diet, rest, exercise & other

positive health practices.

Reducing sources of stress.

Altering one's belief and perceptions of life & work.

Relationship between stress

Life Styles & General Health

The stress that a person perceives may be related to increase in blood pressure & ill

health.

People with certain personality profiles are more likely to suffer stress related

illnesses.

Certain diet can improve health & reduce stress.

Those who undertake regular exercise are capable of handling stress much better.

Some relaxation help in reducing stress.

Stress Conundrum

At work

Awkward clients.

Testing meetings with boss.

Staff problems

Missed deadlines

Tough presentation

Worries about career

At Home

Increasing Mortgages

Schooling children

Fear of crime

Job left undone around the house

Family disputes.

Sources of work pressure

The various sources of work pressure are

Unclear goals / objectives / standards

Difference of opinion with superiors

Conflicting demand on times

Lacking confidence in mgt

Constantly changing priorities

Inner dept conflict

Lack of positive feedback

Feeling of lack of control over work.

Meetings.

Under staffing

Lack of meaningful work

Feeling unqualified to complete a task.

Conflict with colleagues

Feeling of isolation.

Sources of Home Pressure

Some of the sources of home pressure are

Noise

Environmental pollution

Money concerns

Ill health

Racial tension

Bad / Worrying news

Family conflict

Unresolved role

Feeling of guilt

Popular stress impressions

The greatest stress comes from overwork.

Stress is personal issue not an organizational one.

As a person goes up in the hierarchy of an organization he or she is likely to

experience more stress.

Certain jobs by definition more stressful including police work, air traffic control &

so on

Manage your own stress

Stress can be reduced, minimized & can be removed by taking few measures. These

include

1) Develop a Positive Attitude - It is necessary to develop a positive attitude in life our

outlook is simply a matter of how we perceive our daily life. Our perception determines our

experiences. A positive attitude include cheerfulness, sense of humor in place of anger &

hostility. People worry unnecessarily. The worry factor is

40% of what we worry about never happens.

30% of what we worry about is beyond our control.

20% of what we worry about is trivial.

10% of what we worry about is within our control.

2) Control your organization- Sometimes we feel helpless because we have no control

over the job or the organization. In order to control the organization one should develop a

sense of meaning, commitment towards the work and the organization.

3) Establish winning Relationship - Building relationship with friends, colleagues in

the organization can help prevent stress. It results in positive attitudes & team work and

support. Relationship matter in all businesses. For example customer relationship can help in

winning more customers such relationship are important on the job as well as off the job.

4) Enrich your jobs- When work is burden it will result in higher stress and when work

is a pleasure or enjoyment it reduces stress. These employees who love their job or job

contents perform better than others who do not like their work. A particular job can become

enriching when we find learning & growth on the job, take up self learning or self directed

steps, take up new and new assignments or tasks. One should make job grow in contents,

methods, application. It will result in upward mobility of the person doing the job.

5) Control life's Trials and Tribulations - Life is full of challenges, opportunities &

crisis. One has to accept these challenges. No person is protected from the crisis of life. There

are crisis like sickness, accidents, death, financial problems. One should face these crisis

badly & openly. One should have full control on lifes trials tribulations & emotions.

6) Managing Diet - Stress can be reduced by taking balance diet. The stress categories

are hereditary (18%). Environmental (18%), Healthcare (10%) Lifestyle choices (54%). Thus

major stress categories are due to life style choices. This can be solved by managing proper

diet.

7) Regular Exercise- Exercise is one of the most effective strategies for reducing stress.

A fit person feel less strain and can perform at peak level with lower heart rate. People who

exercise daily have better eating & sleeping habits.

8) Use the power in you- Besides regular exercise, meditation can also provide a rest to

mind & body and help us to be proactive in handling stress.

3.0 Literature Review:

Dayo Akintayo(2012) found that working environment is significantly related to workers‘

morale and also working environment is significantly correlated with perceived workers‘

productivity.

Dr. K. Chandrasekar (2011) found that environmental factors are conducive to work and he

also found that factors that affect attitude of employees to work are- interpersonal

relationships control over environment, shift, emotional factors, job assignment, overtime

duty, extended work.

L.S. Kang and R.S. Sandhu (2011) in their article said that Stress is an individual’s state of

mind in an encounter of a demanding situation or any constraint in the organization which

s/he feels harmful or threatening for her/himself. Stress emerges from various energy seeping

conditions in the working environment.

According to Pratibha Garg (2010) Job or occupational stress is mismatch between the

individual capabilities and organizational demands. Employees often experience stress

because of work overload, an expected work pace, difficult work schedules, role conflict,

uncertainty regarding job security, poor interpersonal relationships and unpleasant working

conditions. This stress manifests in conflict, depression, headaches, hypertension, alcoholism

and other conditions. The organizations do not only lose money by paying medical bills but

there is a loss of productivity.

R Neelamegam and S Asrafi (2010) in their article said that Stress is a general term applied to

the pressures felt in life. Stress at work is almost inevitable in many jobs. It has become a

major buzzword and a legitimate concern of the time.

According to N Kathirvel (2009) Stress is the reaction that people take due to excessive

pressure or other types of demand placed on them. It arises when they worry that they cannot

cope. Stress is a demand made upon the adaptive capacities of the mind and body.

Kulkarni (2006) in an article Burnout said that rapid change of the modern working life is

associated with increasing demands of learning new skills, need to adopt to new types of

work, pressure of higher productivity and quality of work, time pressure and hectic jobs are

increasing stress among the workforce. Further he added that privatization and globalization

have ignited mergers, acquisitions and precarious employment. Anne Marie Berg et al”* in a

study in 2006 of Norwegian police said that the prevalence of subjective health complaints

was relatively high and was mainly associated to job pressure and lack of support. Males

showed more depressive symptoms than females. All stress factors on frequency were

positively associated to the burnout dimensions depersonalization and emotional exhaustion

except work injuries.

Sharma, Khera and Khandekar (2006) Computer Related Health Problems among

Information Technology Professionals in Delhi - A publication in Indian Journal of

Community Medicine in January 2006 found more on visual stress and musculoskeletal

symptoms, initially being mild and temporary and later with increasing years assuming more

intense and permanent nature. It also found that computer related morbidity had become an

important occupational health problem and of great concern. It suggested an immediate need

for the concerned authorities to collaborate and enforce suitable preventive measures.

Barhem et al (2004) define stress as an extraordinary state affecting individual human

functions as an outcome of internal and external factors which differ qualitatively (having

different types of stressors) and quantitatively (having different numbers of stressors) from

individual performance, due to individual differences.

Cobb (1975) has the opinion that, “The responsibility load creates severe stress among

workers and managers.” If the individual manager cannot cope with the increased

responsibilities it may lead to several physical and psychological disorders among them.

Brook (1973) reported that qualitative changes in the job create adjust mental problem among

employees. The interpersonal relationships within the department and between the

departments create qualitative difficulties within the organization to a great extent.

Sabir et al.(2003) indicated that nearly one third of the working population in developed

countries report high to very high levels of stresses. Similarly, evidence for newly

industrialized countries is also indicative of the prevalence of stress. Time pressures,

excessive demands, role conflicts, ergonomic deficiencies, job security and relationship with

customers are particularly common stressors amongst employees in the financial services

sector. Furthermore, new stressors such as computer breakdowns, computer slowdowns and

electronic performance monitoring, have developed as a result of human interaction with

computers.

Mishra et al.(1997) conducted a study to compare the occupational stress among public and

private sector public relations officers. The occupational stress index (A.K. Srivastava and

A.P. Singh, 1981) was administered to the sample population. Critical ratio test was used to

find out the difference between perceived occupational stress among public and private sector

public relations officers. The analysis of the data revealed that public relations officers of

public sector experienced significantly higher occupational stress on the dimensions of role

ambiguity, role conflict, unreasonable group and political pressures, powerlessness, poor peer

relations at work, intrinsic impoverishment, low status and strenuous working condition as

compared to public relations officers of private sector. Second, no significant difference was

found between the PRO's of public and private sector on the dimensions of responsibility for

persons, under participation and unprofitability. Lastly, the PRO's of private sector scored

significantly higher on role overload that the PRO's of public sector.

5.0 Objectives

The main objectives of the present study are

1) To find out the job stressors among employees of bank.

2) To find out the job stresses at different levels.

3) To compare the job stresses between public sector bank & Pvt. sector bank.

4) To assess the impact of job stresses on employees & banks performance.

5) To evaluate the measures taken by banks to reduce job stresses and to suggest

measures.

6.0 Research Methodology

1) Need of the study stress has become a common part of our lives today stress can

adversely affect the efficiency & productivity of employees which in turn will affect the

overall performance of the organization.

Banking sector is one of the most important sector of Indian economy. It is an

important element of financial market with the era of liberalization, privatization &

globalization many changes are taking place in the banking sector. Today the size &

structures & operations of a bank are totally different from earlier period say before 1990.

Banking operations are highly globalised and integrated with global financial market. Banks

have diversified their operations into wide variety of avenues like Mutual Funds, Merchant

Banking, Insurance, venture capital, Housing Finance, Education Finance etc. The market

dynamics are also changing. There are changes in govt. policies, market competition & so on.

This requires competent staff and manpower to handle these operations. Such changes

also bring pressure on the employees & result in development of stress. Today work has

becoming more challenging & complex. Organizations are restructuring, downsizing, to

adjust to these changes. This has resulted in higher work load among the staff. Long hours of

work have become a routine today. There is greater competition among the banks. Foreign

banks have entered the market. This will certainly & bring some pressure on the existing

banks & employees.

Thus the study of Job stress among employees of Public Sector & Pvt. Sector bank

will be of great importance to evaluate employees stressors & take suitable measures to

improve their performances and Productivity. Banks are facing problem of rising NAP. It is

likely that the improved performance of bank can help to reduce NAP of banks. This in turn

will contribute to higher profitability.

2) Research Design- The research design in the present study will be mainly Exploratory

Research. It is exploratory because it aims at exploring the unknown facts & information. The

research design will also be portly descriptive research because it describes the existing facts

about the problem of research. Thus the research design is both exploratory as well as

descriptors research.

3) Sources of Data - There are two sources of data namely (1) Primary Sources & (2)

Secondary Sources.

In the present study both the sources of data will be collected & analyzed. The

Primary data will be collected through a structured questionnaire prepared for the purpose of

the study. Before the finalization of the questionnaire, a pilot study on 10 employees will be

done to assess the fitness of the questionnaire and on the basis of this pilot study the final

questionnaire will be prepared & canvassed among the selected sample respondents.

The secondary data will be collected from various published information such as

1) Bank's Annual Report.

2) RBI Publication

3) Govt. Publication

4) Trade Publication

5) Journals & Magazines.

6) Newspaper Reports & Articles.

7) Association Newsletter / Publications.

8) International Publications.

9) Textbooks on the subject

10) Research Reports of earlier Researcher.

Thus the data will include primary as well as secondary and on the basis of this final

report will be prepared. The Secondary data will provide the basic foundation structure of the

study in terms of size, structure growth, manpower, operations, of public & Pvt. sector banks

in the country.

The Primary data will cover the actual research on the subject. It is the actual survey

that will be carried out in the banks among the selected respondents.

The data will be collected tabulated and analyzed and on the basis of this final report

will be prepared.

4) Sample Size: It is proposed to collect primary data from 200 bank employees of public

sector & Pvt. sector banks. The distribution of sample will be 100 from public sector and 100

from Pvt. sector banks. The distribution of sample can be seen as below:

Banks Junior Staff Senior Staff Total

Public Sector 50 50 100

Pvt. Sector 50 50 100

Total 100 100 200

Thus the sample will cover 50 Junior Staff / Clerical Staff / Junior executives and 50

Senior Staff / Officers or Managers of Public Sector & Pvt. Sector banks. The sample will be

selected from the employees of banks in the City of Mumbai it will be based on non random

method. The samples will be selected on the basis of convenience sampling or judgment

sampling it may be noted that the research is portly exploratory and therefore small sample

size will be sufficient for the purpose of the study. The sample framework is also

homogeneous & not heterogeneous. It means two categories Junior employees & Senior

employees of a particular bank.

5) Data Analysis / Report writing- The data collected will be analyzed in terms of statistical

testing to find out its validity. The statistical tests like 2 test will be used. SPSS computer

software will be used to code, analyze the data and on the basis of this final tables / charts

will be prepared & analyzed and it will be included in the final report. The Null & Alternative

hypothesis will be statistically tested to find out its validity in the present research.

6.0 Hypothesis

The study will also test the hypothesis to find out its validity & application so as to make

research more scientific & apply statistical tools for testing of the hypothesis. The hypothesis

framed are

Null Hypothesis No.1 - There is no difference in the job stresses among employees of Public

Sector & Pvt. sector banks.

Alternative Hypothesis No.1 - "There are differences in the job stresses among the

employees of Public Sector & Pvt. sector banks".

Null Hypothesis No.2- "Stress level varies directly with the position of employees in Public

Sector & Pvt. Sector Banks".

Alternative Hypothesis No.2 - "Stress level does not vary directly with the position of

employees in Public Sector & Pvt. sector banks".

Review of literature

Sources / References

1) Review of literature - stress Mgt in IT Sector Feb 2014

Dr. Ipseeta Satpathy

Dr. B Chandra Mohan

Ms. Bonifa Mitra

Indian Journal of Applied Research Vol 4 Issue 2

Feb 2014 ISSN2249-555X

2) Stress Mgt in Medical Education A Review of the literature Shapiro, Shanna,

Schwartz

3) A comparative Analysis Differences in overall job stress level of permanent

employees in Pvt. Sector & Public Sector banks Khurram Zafar Awan International Journal

of Economics & Mgt Science Vol 1 No. 10 2012 PP 45-58

4) Impact of stress on Employees Job Performance. A study of Banking Sector of

Pakistan International Journal of Marketing Studies (2010) (PP-122-126) Bashir & Ramay.

5) Impact of stress on Employee productivity, performance and Turnover, An important

managerial issue (2010) Imitiaz S & Ahmed S

6) Regression Analysis of stress A comparative study of employees in Public Sector &

Pvt. Sector banks Mrs. Vishal Samartha (2013) International Journal of Multidisciplinary

Mgt studies Vol. 3 (7) July 2013.

Categories of Stress Symptoms

The four category of Stress Symptoms are

1) Physiological Symptoms (our body)

2) Emotional Symptoms (our feelings)

3) Cognitive Symptoms (our thinking)

4) Behavioral Symptoms (our behavior)

1) Physiological Symptoms Stress generally depletes body's immune system which

results in wide range of everyday viruses & infections. People tend to feel or prone to

common cold or influenza. A person having physiological Symptoms will not be effectual at

work or may remain absent from the work. The Physiological Symptoms may cover the

following.

Dry Mouth

Nail biting

Weight loss / gain

Dry Skin

Heart Pounding

Teeth Grinding

Headache

Clenched fits

Increase / Decrease in Agitate

Tight Shoulder

Frequent Urination

Constipation

Neck Pain

Upset Stomach

Back Pain

Nervous Switch

2) Emotional Symptoms- Emotional systems also contribute to lower effectiveness &

make our task much difficult some of the emotional

Symptoms are

- Mood swings - Depression

- Hostility - Decreased sex derive

- Anxiety - Anger

- Insomnia - Hopelessness

- Crying easily - Fear

- Agiathy - withdraw

3) Cognitive Symptoms- These symptoms affect the way we think. For example over

alertness is an attempt to work faster which is due to higher demand for work & when one

cannot cope up with the fast work. Then he think of under alertness. It is a situation of

exhaustion or given up the chase. Similarly when there is two much pressure to keep pace

with the demand &if one cannot cope up the mind thinks simplistic as a way out to save

mental energy. Thus under stress an individual produce lower level of thinking than under

normal conditions. Some of the cognitive symptom are

- Anxious - Hostility

- Unable to focus - Polarized thinking

- Foggy Thinking - Intrusive though

- Prone to error - Disorganized

- Forgetfulness

- Decreased alertness.

4. Behavioral Symptoms- These symptoms affect the way we behavior charges. As a

result of stress our behavior is distorted eg talking too fast & too much. This is the effect of

stress due urgency of work or greater pressure of work. Some people attempt to run away

from the same & seek comfort in food, gambling, smoking alcohol, drugs etc. which may

help in smoothing immediate feel but create long term problem.

The behavior symptoms are

- Easily startled.

- Sleeplessness

- Decreased exercise

- Lack of social infect

- Increased Smoking

- Increased sugar or fat intake

- Withdrawal

- Increased drug use or alcohol.

Categories of stress inducers

Stress inducers can be broadly classified into three categories these are

1) Set - backs (little control)

2) Hassles (Unwanted)

3) Challenges (Sought after)

Setbacks are significant life events which are common to all of us eg. death of a

spouse, friend & colleague or serious illness. Such setbacks create stress but we cannot do

anything to control there setback or we are helpless.

Hassles are events which happen in our daily life which are unwanted eg. car

breakdown hand disk crashing, transfer announced by the mgt. These hassles also disturb us

and result into some stress.

The third category is challenges which everyone wants and take up in life to be

successful. Fox example going of an interview for Managers post. It is exciting, challenging

and it brings pressure on us as everybody wants to be successful in the interview.

When Pressure Becomes stress

We always face some pressure in working. When we can cope up with this pressure

then there is no stress but when we cannot cope up with the work pressure it results into

stress.

In the above diagram the horizontal axis indicate increasing pressure on us while vertical axis

indicate increasing feelings of well being & ability to perform to our full potential.

Every individual has some optimum level of pressure or stimulation when there is too little

pressure or stimulation me feel it is bored own and seek more work or activities on the other

hand when there is too much pressure then it results in negative emotions or stress.

Growth of Banking in India

Introduction- Indian banking structure consist of scheduled banks and non scheduled banks.

Scheduled banks are those banks which are included in the second schedule of Banking

Regulation Act 1949.The remaining banks are non scheduled banks.

Scheduled commercial banks are classified into three categories viz.

1. Public Sector banks

2. PVT Sector Banks

3. Foreign banks

The growth of banking sector in India over the period of time can be seen from the

following table.

Description 2007 2013

SBI & Ass

Nationalized

14691

37437

21315

54528

Total of Public Sector 52128 75843

Old Pvt. Sector Banks

New Pvt. Sec. Banks

4840

2599

6290

9718

Total of Pvt. Sector Banks 7439 16008

Foreign Banks 272 334

Regional Rural Banks 14810 17564

Local Area Banks 48 62

All banks 74697 109811

It can be seen from the above table that there is rapid expansion of banks in India over

the period of time. The number of banks which was 74697 in the year 2007 increased to

109811 in the year 2013 The growth rate works out to be

The number of Public Sector banks rose from 52128 in 2007 to 75843 in 2013. The

growth rate works out be

Public sector bank consist of State Bank of India and its associates & other

Nationalized banks. Both experienced rapid growth during this period. The number of SBI &

its associates increased from 14691 in 2007 to 21315 in 2013. The growth rate is _______. In

the case of nationalized banks the number rose from 37437 in 2007 to 54528in 2013. The

growth rate is __________.

The number of Pvt. Sector also registered an upward trend. It increased from 7439 in

2007 to 16008 in 2013. The growth rate works out to be. There are tow categories of Pvt.

Sector banks namely old Pvt. Sector Banks & new Pvt. Sector banks. The number of old Pvt.

Sector banks rose from 4840 in 2007 to 6290 in 2013. The growth rate is _______ while the

number of new Pvt. Sector banks rose from 2599 in 2007 to 9718 in 2013. The growth rate is

Thus from the above trends in Public Sector & Pvt. Sector banks me can conclude that

banking structure in India is dominated by Public Sector banks. The Share of Public Sector

banks & Pvt. Sector banks in the overall banking sector can be seen from the filling table.

Table No.

% Share of Public Sector & Pvt. Sector Banks

Description 2007 2013

SBI & its associates

Nationalized banks

19.66

50.13

19.41

49.66

Public Sector Banks 69.79 69.07

Old Pvt. Sector Banks

New Pvt. Sector Banks

6.48

3.48

5.72

8.85

Pvt. Sector Banks 9.96 14.57

Others

Total 100.00 100.00

It can be seen from the above table that Public Sector dominates Indian banking

system accounting for about 70% share in banking while Pvt. Sector account for about 15%

share in the total banks. Thus Public Sector banks dominates in India. This was due to govt.

policy of encouraging Public Sector in India till 1991. After 1991 Govt. reduced the role of

Public Sector in India and encouraged Privatization.

As a result the share of Public Sector banks in India remained static at 70% over the

last few year though the number of branches have increased during the period.

The share of Pvt. Sector bank has increased from 9.96% in 2007 to 14.57% in 2013.

Thus as a result of Privatization policy the Pvt. Sector banks were set up during the period.

Growth of Public Sector Banks - Public Sector banks include State Bank of India and its

subsidiaries and nationalized banks. The growth of Public Sector bank since 2007 can be seen

as below:

Table

Year SBI Nationalized Total

2007

2008

2009

2010

2011

2012

2013

14691

15870

16940

18392

19341

20260

21315

37437

39287

41027

43675

46461

50729

54528

52128

55157

57967

62067

65802

70989

75843

State bank of India is the leading commercial bank in the country having largest

number of branches in the country it had 14691 branches in the year 2007 which

continuously increased to 213115 branches in 2013.

On the other hand the number of branches of nationalized banks increased from

37437 in 2007 to 54528 in 2013.

Limitations- The present study has some limitations. These are

1) It is applicable to the city of Mumbai as the sample selected are from banks located in

Mumbai. Hence the results may not be applicable to banks outside the city.

2) The report is based on the information or data provided by the employees of the

banks. There are chances of respondents bias or the intern ewers bias.

3) The sample size is limited to 200 samples. It is quite likely that large sample size can

focus on some insights into the problem of research.