Public Vs Private Sector Bank: Which One is better?

Dear Friends,

As you all know that RBI Governor Raghuram Rajan recently stated that pay scales in Public Sector Units including Public Sector Banks are uneven as well as it is difficult to get the Top-Notch talent in Public Sector Banks.

As per the latest media reports, the pay scales in public sector banks, up to the Middle Management Grade are higher in comparison to their private sector counterparts.

Some private sector banks CEOs receive almost 30 times higher salary in comparison to their private sector counterparts.

As per the reports in July 2015,

Raghuram Rajan, Governor of RBI drew an annual gross salary of Rs. 23.84 lakh.
Chanda Kochhar, CEO of ICICI Bank, drew Rs. 4.76 crore per annum in the fiscal year 2015-16
SBI Chairman, Arundhati Bhattacharya drew an annual gross salary of Rs. 31.10 lakh in the fiscal year 2015-16.
On the other hand, Aditya Puri, Managing Director & CEO of HDFC Bank drew a gross salary of Rs. 9.7 Crore for the fiscal year 2015-16 that is about 30 times more than the SBI chief received

The pay scale of a Probationary (entry-level) Officer in a Public Sector Bank is nearly 6 lakh per annum whereas the pay scale is nearly 4 lakh per annum in a Private Sector Bank

Why People Prefer Public Sector Bank Jobs?

It is not surprising that over 20 lakh candidates apply for almost every Clerical and PO level recruitment exam of Public Sector Banks (SBI and IBPS).Here are the benefits of Public Sector Bank jobs, which motivate people to join them:

Better Work-Life Balance: Public sector banks offer a more liberal leave policy in comparison to their Private peers.
Growth Opportunities Across Verticals: The competitive Environment of the Public Sector Banks provides growth opportunities across verticals. Public sector banks provide an ambience, which is conducive to achieving new personal heights and improving job profiles.
Exposure Through Communication: Public sector banks usually have a large customer base. Communication and interaction with the customers greatly enhances one’ skill sets and confidence in the long run. It is no more just a desk job where you are just pushing papers all day.

High Job Security: Jobs in Public Sector Banks offer High Job security since there is no anxiety of being fired owing to performance, economic crisis or work pressure.
Regulated Working Hours: Working Hours in the Public sector banks are much more regulated in comparison to the private banks. It is however not like old times when job timings were fixed.
Lower Stress: In Private Bank Jobs, there is a tremendous pressure on the Employees to achieve targets within time in comparison to the Public Sector Banks. Public Sector Banks offer relatively low-pressure environment where you are given targets but the targets are achievable.
Lower Interest Rates on Loans: Offers Low Interest Rates on Loans in comparison to Private Sector Banks to employees.

Now, this clearer view about the salary war between public sector and private sector banks. Weigh your options before you apply.