A public sector banks are those banks which are either run by, or owned by, or controlled by the Government of India. Certain examples would be The Reserve Bank of India (RBI), The State Bank of India (SBI), Allahabad Bank, Andhra Bank, Punjab National Bank(PNB), UCO Bank, etc. A private Sector Bank on the other hand is privately owned organizations with the government having no say in the management. However, for the smooth functioning of the economy, all private sector banks come under the aegis of the rules and regulations set by the government of India and it is through this means that the policies of such banks are controlled by the government. Some examples would be HSBC Bank, ICICI Bank, IDBI Bank, Axis Bank, etc. In terms of recruitment and jobs too, they have different procedures and policies.
The topmost financial institute in the country is the Government’s very own reserve bank. It is actually the Government’s bank and does not do much business with individuals. The RBI recruits to 3 cadres: Clerical Grade, Grade an officers and Grade B officers who are responsible for the workings of the bank. To begin with, the clerks work in the cash department as examiners of coins and notes. Once they complete 5-10 years they become eligible for the requisite exam so as to compete for promotion to the next level. There is also another exam open to Graduates, Post Graduates, CA’s, MBA’s in the 21-26 years of age group for recruitment to Class I posts. The examination is in 3 parts, which test General Mental Ability, English Language Skills, Knowledge of Economics and Social skills, respectively. Those selected must then appear for an interview which is the deciding factor.
Other nationalized or public sector banks recruit through the Banking Service Recruitment Boards (BSRBs). They advertise in newspapers and the employment news so as to get candidates who must then sit for a written test. This test consists of objective questions on Test of Reasoning, Quantitative Aptitude, General Awareness, English Language and a non-objective portion called the Descriptive Test.
The Private sector banks, mainly foreign banks. They recruit through interviews held in the premier management institutes, from among finance professionals such as Chartered Accountants, Cost and Works Accountants and Chartered Financials Analysts, from the premier management institutes and from public sector commercial banks.
An employee of a public sector bank has the aim to do a good job so that he is up for promotions. However, such a job has the usual security that one associates with any Government job. There are perks involved and many schemes even after retirement. As opposed to this, any employee in a private sector bank has to constantly push the boundaries. He is only as good as the work he does and his career depends on this. As a result, the private sector banks are constantly looking for more dynamic and competitive professionals, more so than the public sector banks.
