Private Bank is a bank that is not state-owned in a country where most banks are owned by the government and provides banking facilities to high net worth individuals.
In India, the financial sector has become stronger in terms of capital and the number of customers. It has become globally competitive and diverse aiming, at higher productivity and efficiency.
Some Special Services provide by Private Banks are as follows:
- Net Banking available
- Phone Banking available
- ATM Booths are available everywhere
- Shopping can be done by Debit Card also
- Quick response to Customer problems
- Loans are easily available
- Account can be easily open at Rs.0
- Balance can be Rs.0 for long time
- Accounts can be maintain for long time.
- Insurance Facilities are available
- Provides better quality products and services
- Bank Executives help people to plan for their investments.
- Depository services
- Mortgage financing
Because large number of players in various fields has been entered the market, competition will be intensified by mutual funds, post offices, Non Banking Finance Corporations (NBFCs) etc. from both domestic and foreign players. This would lead to increased sophistication and technology in the sector.
There are many challenges for the banking sector such as consumer satisfaction, technology, risk management, corporate governance etc. and they are redefining their priorities, which are now focused on cost reduction, product differentiation and customer centric services. Major players in this sector are HDFC, ICICI, HSBC, State Bank of India, Punjab National Bank, ABN Amro Bank,City Bank, etc.
Scope of Insurance Sector in Private Banks: The insurance sector has opened up for private insurance companies with the enactment of IRDA Act, 1999. A large number of companies are competing under both life and general Insurance.
Major players in this sector are LIC, Max New York Life Insurance, Metlife Insurance, Birla Sun Life Insurance, Bajaj Allianz, ICICI Prudential, HDFC Standard Life, etc.
In India, most of the population is not insured, so there is a lot of scope in this sector and a number of companies are planning to enter the sector.
So, we believe that for a stronger financial system, India needs to move to act maturely by increasing profitability, efficiency and providing better solutions to the customers.