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 individuals 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.