Difference between public sector and private sector bank jobs

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In recent years, many private banks in India have opened in India, promising better service levels to customers. In terms of nature of job, it is quite similar in private sector as well as public sector banks. You have to deal with customers and make sure you make a contribution to the growth of the bank. However, there are slight differences in public sector and private sector bank jobs. 
 

1. Difference of recruitment

Public sector banks recruit mainly through bank exams and public notices. Private banks, on the other hand, prefer campus placements and referrals. For entry level jobs too, private banks usually go through campus placements. You would seldom find a public notice issued by a private bank for recruitments. 
 

2. Difference of vacancies

Public sector banks go by the vacancy rules laid by the government. There is a certain portion of vacancies reserved for OBCs and SC/STs. There are no reservations in private sector banks. The reservations make it harder to find a job in a public sector bank.
 

3. Difference in growth

One of the banes of public sector banks is slow growth. If you get recruited at the entry level in a public sector bank, you would take forever to reach the higher levels. There are certain rules for promotion and salary is fixed according the level you are working at. Promotions in public sector banks are usually not done on merit, but other criteria laid down by the government. 
 
On the other hand, growth can be fast and robust in a private sector bank job. In the private sector, you get promotions on merit, and if you are good, sky is the limit for you. 
 

4. Difference in working environment

Largely, the working environment of private and public sector banks is the same. However, private sector banks are largely more competitive than the public sector banks, although that situation is changing fast. In a private sector bank, you usually have to meet tough targets, and adhere to the deadlines. You could be working longer hours very often in private sector banks in order to meet your targets and deadlines. 
 
The environment is more relaxed in a public sector bank, but that by no means implies you do not have work in the public sector. 
 

5. Difference in pay scale

Largely, the pay scale in private and public sector banks is the same. However, according to recent studies done on the field, it has been seen that public sector banks pay more compared to private sector banks, when the working hours are taken into consideration. 

However, since the growth in public sector banks can be slow, the advantage of higher pay scale is usually negated. 
 
As for the question, whether to work in a private sector or a public sector bank, the difference between both the sectors is fast diminishing. If you have a choice, go for a bank that offers opportunities for growth, which could be a public sector bank or a private sector bank too.

4 comments

Anonymous

Hey people.. If you have any doubt about banks. Just read this..

Anonymous

Nice Article.......... But you have completely ignored the advantage of JOB Security/Stability in PUBLIC SECTOR BANKS

globalcitizen August 8, 2012 at 11:09 AM

Just do not sell out your health for a mere 500-600 rupees a day by working in a private sector bank. Ask them who are working in any of Indian origin private sector banks. The only reason people look out for another job everyday and sometimes even without an alternative job run away is only the exploitation by their banks. They do not know what a social life is. They even do not get leave for it. They do not allow any increment or promotion if you do not fulfil their ever-increasing demands. There is no life in a private sector bank.

Xcalibur August 8, 2012 at 12:42 PM

Hey guys. I work in State bank of India and the job is awesome. As far the pay is concerned, though the actual is not reflected in the pay slip but one gets more than a private bank considering the perks and emoluments one gets. All in all, its a good place to work.

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