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Finance is an important factor for everyone. For making a well financial base, for having a fund for business, education, medical and other requirement several options are available.National bank, private sector bank and public sector bank are the common and well-known options to all. The facility that is offered by these financial institutesto the customers is not same to same. Here we are going to make a comparison between private sector bank and public sector bank. So that general public will be benefited from that.
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Basic comparisons
- Public sector banks contain mostly government hold share. But the share of private sector bank is hold by the individuals or private institutes.
- Fund that is used in Public sector bank is mostly from government of the country and the public money. But for the private sector, fund is contributed by the share holders.
- Public sector banks are controlled and governed by the government, but on the other hand private bank are controlled by the shareholder. Government has no say about them.
- Interest rate of a public sector bank for the customers is bit higher than the private bank.
- The public sector banks have no target of making money as they are owned by the government so their only objective is to betterment of public. But as private bank are owned by the shareholders and private institutes so their sole interest is to make profit.
- For taking a loan customer has to pay bit lower interest for the public sector bank than a private sector bank.
- Private sectors bank provide better service than a public sector bank
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