The banking sector has seen an exponential amount of growth recently. Due to the lucrative salary packages, many aspiring young individuals are leaning towards a job at the banking sector. But they are faced with a huge dilemma when making this choice, whether to opt for a private bank or a public one. Fresh candidates can face difficulty in making an informed decision about which one will provide them with better job satisfaction.
So here is a brief account stating the difference between the two sets of banks for helping young professionals out.
Career in private banks versus career in public sector banks
Both the social and economic development of a country depends majorly on the growth and development of the nation’s public as well as private banks. The main difference between them lies in their approach of contributing to this growth. So the important thing for youngsters is to understand these key differences amongst the public sector and private sectors banks and align these with their own personal goals, to identify which will suit them right.
Here are the pertinent aspects that one should consider when making their decision whether to work for banks from the two sectors:
Consider the learning environment
It is a well-known fact that most public sector banks spend a lot of funds, time and time training their employees. So this is considered to be an equipped training area for freshers. The reason behind public bank’s ability to do so is the fact that they have a broader base in terms of organization and structure.
On the other hand, private sector banks also concentrate on training and development, but they also strongly believe in hands-on experience. So the fresh recruits learn a lot from being on the job and hone their skills with numerous in-house training programs. Another important point to note here is that private sector banks are also known to send their best employees to several well reputed management institutes for further training and education.
The case of career growth period and returns
A well-known trend seen in all public sector banks is the fact that the career growth curve is slow and rises gradually. The main criteria behind attaining a promotion in these banks largely depends upon the number of years a person has spent with the bank. So the productivity of the employees along with time and their enthusiasm for taking on newer challenges and delivering well reduces with time. But nowadays with the steady increase in public sector banks for need of talented fresher’s and also the increasing competition are changing the scenario in these banks for better. Today more and more public sector banks are seen to be focusing on identifying talent and grooming them.
Whereas in private sector banks the career growth is faster, and talent and hard work is rewarded promptly. The main criterion behind receiving a promotion resides solely on merit and not on age.
Difference in pay scales
As mentioned above, public sector banks rely on the number of years served with the bank for giving promotions so the pay scale also increases at a slower rate in these terms. Private sector banks jobs provide promotions quite quickly so the remuneration also hikes pretty fast with them.
Other work related benefits
in case of public sector, the matter of job security is always higher. This is also the case for individuals with poor performance. But this may not be the case in private sector banks, as there the job is highly competitive. Only better employees receive bigger pay packages and job securities. Also public sector banks offer their employees with a number of other benefits like, lower rates on loans, high percentage of interest on deposits, pension packages, and much more. But a significant hike in salary may still be less frequents an occurrence. In public sector banks career growth opportunities generally depend upon the level of seniority and not on performance. So you might not be deemed a promotion even after an excellent year of good performance on your part. But this is exactly the contrary to private sector ones where good performance receives appreciation and rewards promptly, regardless of seniority and age.
Although private sector banks do not offer great amount of job security like the public sector ones. But other benefits like, higher interest rate on fixed deposits, paid holidays based on the performance of employees, awards and much more are provided to the employees for encouragement to carry on the good work.
Below is a table that’ll help you to take a better decision.
|Public Banks||Private Banks|
|Learning Experience||Invests a lot of time in employee’s training||Believe in Hands–on experience|
|Career Growth||Slow Career Progress||Comparatively, career growth is fast|
|Promotion Criteria||Promotion is based on Seniority||Promotion is based on Merit|
|Salaries||Hike is salary is low||If you work well, you can expect a good rise in salary|
|Job Security||Job security is high||Security of your job depends on performance|
So that were some of the major differences between public & Private sector banks that you should know before deciding to make a career in banking sector If you have any doubts do mention them in the comments box below.