“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 Public Sector Pvt. Sector Total
Junior Staff 50 50 100
Senior Staff 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.
2)
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 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 SBI & Ass
2007 14691
2013 21315
Nationalized Total of Public Sector Old Pvt. Sector Banks
37437 52128 4840
54528 75843 6290
New Pvt. Sec. Banks Total of Pvt. Sector Banks Foreign Banks Regional Rural Banks Local Area Banks All banks
2599 7439 272 14810 48 74697
9718 16008 334 17564 62 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 SBI & its associates
2007 19.66
2013 19.41
Nationalized banks
50.13
49.66
Public Sector Banks Old Pvt. Sector Banks
69.79 6.48
69.07 5.72
New Pvt. Sector Banks Pvt. Sector Banks Others Total
3.48 9.96
8.85 14.57
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 2007
SBI 14691
Nationalized 37437
Total 52128
2008
15870
39287
55157
2009
16940
41027
57967
2010
18392
43675
62067
2011
19341
46461
65802
2012
20260
50729
70989
2013
21315
54528
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.