Public Sector Banks in India:

A Review of Literature

Abstract

This study aims to gain insight on various issues related to the public sector banking industry in India. For this study, forty research papers and studies related to market structure, conduct and performance of public sector banks in India have been examined. These studies made important contributions to the comparative analysis of profitability of public sector banking industry with respect to private and foreign banks, but none of them provided a rigorous analysis of the impact of reforms on the profitability of public sector banking industry over time. Issues explored in these studies are related to interest and non-interest income, bank size, technology issues, and formation of non-performing assets. In many studies, function have been used. In very few studies, the S-C-P framework has been used in the banking industry in India. Many of the studies have compared public sector banks with old private, new private and foreign banks. None of these studies have examined public sector banks at bank level. But now questions arise whether with the adaptation of liberal economic policies and market model, other objectives than profit are irrelevant. Secondly, given their own frame of reference, can they be dubbed as good or bad?