BANKING STRUCTURE IN INDIA

Reserve Bank of India (RBI)

The country had no central bank prior to the establishment of the RBI. The RBI is the
supreme monetary and banking authority in the country and controls the banking system in
India. It is called the Reserve Bank as it keeps the reserves of all commercial banks.
Scheduled & Non scheduled Banks

A scheduled bank is a bank that is listed under the second schedule of the RBI Act,
1934. In order to be included under this schedule of the RBI Act, banks have to fulfill certain
conditions such as having a paid up capital and reserves of at least 0.5 million and satisfying
the Reserve Bank that its affairs are not being conducted in a manner prejudicial to the
interests of its depositors. Scheduled banks are further classified into commercial and
cooperative banks. Non- scheduled banks are those which are not included in the second
schedule of the RBI Act, 1934. At present these are only three such banks in the country.

Commercial Banks

Commercial banks may be defined as, any banking organization that deals with the
deposits and loans of business organizations.Commercial banks issue bank checks and drafts,
as well as accept money on term deposits. Commercial banks also act as moneylenders, by
way of installment loans and overdrafts.Commercial banks also allow for a variety of deposit
accounts, such as checking, savings, and time deposit. These institutions are run to make a
profit and owned by a group of individuals.

Scheduled Commercial Banks (SCBs):

Scheduled commercial banks (SCBs) account for a major proportion of the business
of the scheduled banks. SCBs in India are categorized into the five groups based on their
ownership and/or their nature of operations. State Bank of India and its six associates
(excluding State Bank of Saurashtra, which has been merged with the SBI with effect from
August 13, 2008) are recognised as a separate category of SCBs, because of the distinct
statutes (SBI Act, 1955 and SBI Subsidiary Banks Act, 1959) that govern them. Nationalised
banks and SBI and associates together form the public sector banks group IDBI ltd. has been
included in the nationalised banks group since December 2004. Private sector banks include
the old private sector banks and the new generation private sector banks- which were
incorporated according to the revised guidelines issued by the RBI regarding the entry of
private sector banks in 1993.

Foreign banks are present in the country either through complete branch/subsidiary route
presence or through their representative offices.
Types of Scheduled Commercial Banks

Public Sector Banks

Public sector banks before the economic liberalisation

The share of the banking sector held by the public banks continued to grow through the
1980s, and by 1991 the public sector banks accounted for 90% of the banking sector. A year
later, in March, 1992, the combined total of branches held by public sector banks was 60,646
across India, and deposits accounted for Rs. 1,10,000 crore. The majority of these banks were
profitable, with only one out of the 21 public sector banks reporting a loss.

Problem, with nationalised banks reporting a combined loss of Rs. 1160 crores. However, the
early 2000s saw a reversal of this trend, such that in 2002-03 a profit of Rs. 7780 crores by
the public sector banks: a trend that continued throughout the decade, with a Rs. 16856 crore
profit in 2008-2009.

Nationalised Banks

1. Allahabad Bank

Allahabad Bank is a nationalised bank with its headquarters in Kolkata,

India. It is the oldest joint stock bank in India. On 24 April 2014, the bank entered
into its 150th year of establishment. It was founded in Allahabad in 1865.

2. Andhra Bank

Andhra Bank (BSE: 532418) is a medium-sized public sector bank (PSB) of

India, with a network of 2803 branches, 4 extension counters, 38 satellite offices and
3636 automated teller machines (ATMs) as of 31 Mar 2016. During 201112, the
bank entered the states of Tripura and Himachal Pradesh. The bank now operates in
25 states and three Union Territories. Andhra Bank has its headquarters in
Hyderabad, Telangana, India.

3. Bank of India

Bank of India ) (BoI) is commercial bank with headquarters at Bandra Kurla

complex, Mumbai. Founded in 1906, it has been government-owned since
nationalisation in 1969. However, some branches are individually owned, such as
Kandia, Indonesia, etc. Bank of India has 5100 branches as on 31 January 2017,
including 56 offices outside India, which includes five subsidiaries, five
representative offices, and one joint venture. BoI is a founder member
of SWIFT (Society for Worldwide Inter Bank Financial Telecommunications), which
facilitates provision of cost-effective financial processing and communication
services.

4. Bank of Baroda
 Bank of Baroda (BoB) is an Indian state-owned International banking and
financial services company headquartered in Vadodara (earlier known as Baroda) in
Gujarat, India. It has a corporate office in Mumbai.Based on 2017 data, it is ranked
1145 on Forbes Global 2000 list. BoB has total assets in excess of 3.58 trillion, a
network of 5538 branches in India and abroad, and 10441 ATMs as of July, 2017.

5. Bank of Maharashtra

Bank of Maharashtra is a major public sector bank in India. Government of

India holds 81.61% of the total shares. The bank has 15 million customers across the
length and breadth of the country served through 1897 branches as of 5 April 2016. It
has largest network of branches by any public sector bank in the state of Maharashtra.

6. Canara Bank

Canara Bank is one of the largest public sector banks owned by

the Government of India. Its headquarters is in Bengaluru. It was established
at Mangalore in 1906, making it one of the oldest public sector banks in the country.
The government nationalized the bank in 1969. As of 30 June 2017, the bank had a
network of 6089 branches and more than 10519 ATMs spread across India. The bank
also has offices abroad in London, Hong Kong, Moscow, Shanghai, Doha,
Bahrain, South Africa, Dubai, Tanzania and New York.

7. Central Bank of India

Central Bank of India, a government-owned bank, is one of the oldest and

largest commercial banks in India. It is based in Mumbai which is the financial
capital of India and capital city of state of Maharashtra. The bank has 4730 branches,
5319 ATM's and 4 extension counters across 27 Indian states and three Union
Territories. At present, Central Bank of India has overseas office at Nairobi, Hong
Kong and a joint venture with Bank of India, Bank of Baroda, and the Zambian
government. The Zambian government holds 40 per cent stake and each of the banks
has 20 per cent. Recently it has also opened a representative office at Nairobi
in Kenya.

8. Corporation Bank

Corporation Bank is a public-sector banking company headquartered

in Mangalore, India. The bank has a pan-Indian presence. Presently, the bank has a
network of 2,440 fully automated CBS branches, 3,040 ATMs, and 4,724 branchless
banking units across the country. The bank has representative offices in Dubai and
Hong Kong.As of 31 March 2016, the total business of the bank was 345,493
crore(US$54 billion). Total deposits stood at 205,171 crore (US$32 billion) and
total advances were 140,322 crore (US$22 billion). The bank's net worth rose
to 11,344 crore (US$1.8 billion).

9. Dena Bank
 Dena Bank , headquartered in Mumbai and its total branch network stands at
1,773. The bank was founded in 1938 and the Indian government nationalized it in
1969.

10. Indian Bank

Indian Bank is an Indian state-owned financial services company established

in 1907 and headquartered in Chennai, India. It has 20,661 employees, 2594 branches
and is one of the top performing public sector banks in India. It has overseas branches
in Colombo and Jaffna in Sri Lanka, and in Singapore, and 223 correspondent
banks in 71 countries. Since 1969 the Government of Indiahas owned the bank.

11. Indian Overseas Bank

Indian Overseas Bank (IOB) is a major public sector bank based

in Chennai(Madras), with about 3700 domestic branches, including 1150 branches
in Tamil Nadu, 3 extension counters, and eight branches and offices overseas as of 30
September 2014. Indian Overseas Bank has an ISO certified in-house Information
Technology department, which had developed the software that its branches used to
provide online banking to customers earlier.The bank has achieved 100% networking
status as well as 100% CBS status for its branches. IOB has a network of about 3300
ATMs all over India. Indian Overseas Bank has branches in Singapore, Colombo,
Seoul, and Bangkok. It has representative offices in Guangzhou, Vietnam, and Dubai.
IOB also is part-owner of a joint-venture bank in Malaysia.

12. Oriental Bank of Commerce

Oriental Bank of Commerce is an India-based bank established

in Lahore (then the city of British India, and currently in Pakistan), is one of
the public sector banks in India.

13. Punjab & Sindh Bank

Punjab & Sind Bank is a government-owned bank (79.62%), with

headquarters in New Delhi. Of its 1466 branches spread throughout India, 623
branches are in Punjab state. Its net profit is Rs. 121.35 crores and net NPA is 3.55%
for the year ending 2014-15. The bank's operating profit for the year ending 2014-15
is Rs. 775.45 crores. Total business of the bank was Rs. 1,51,511 crores for the year
ending 2014-15 and Business per employee is Rs. 15.95 crore. The net worth of the
bank as on 31.03.15 is Rs. 4812 crore.

14. Punjab National Bank

Punjab National Bank (PNB) is an Indian multinational banking

and financial services company. It is a state-owned corporation based in New
Delhi, India. The bank was founded in 1894. As of 31 March 2017 the bank has over
80 million customers, 6,937 branches, and 10681 ATMs across 764 cities. PNB has a
banking subsidiary in the UK (PNB International Bank, with seven branches in the
UK), as well as branches in Hong Kong, Kowloon, Dubai, and Kabul. It has
 representative offices in Almaty (Kazakhstan), Dubai (United Arab
Emirates), Shanghai (China), Oslo (Norway), and Sydney (Australia). In Bhutan it
owns 51% of Druk PNB Bank, which has five branches. In Nepal PNB owns 20%
of Everest Bank Limited, which has 50 branches. Lastly, PNB owns 84% of JSC (SB)
PNB Bank in Kazakhstan, which has four branches.

15. Syndicate Bank

Syndicate Bank is one of the oldest and major commercial banks of India. It
was founded by T M A Pai, Upendra Pai and Vaman Kudva. At the time of its
establishment, the bank was known as Canara Industrial and Banking Syndicate
Limited. The bank, along with 13 major commercial banks of India, was nationalised
on 19 July 1969, by the Government of India. The Bank is headquartered in the
university town of Manipal, India.

16. State Bank of India

State Bank of India (SBI) is an Indian multinational, public sectorbanking

and financial services company. It is a government-owned corporation with its
headquarters in Mumbai, Maharashtra. On 1st April, 2017, State Bank of India,
which is India's largest Bank merged with five of its Associate Banks (State Bank of
Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of
Patiala and State Bank of Travancore) and Bharatiya Mahila Bank with itself. This is
the first ever large scale consolidation in the Indian Banking Industry. With the
merger, State Bank of India will enter the league of top 50 global banks with a
balance sheet size of 33 trillion, 278,000 employees, 420 million customers, and
more than 24,000 branches and 59,000 ATMs. SBI's market share will increase to 22
percent from 17 per cent. It has 198 offices in 37 countries; 301 correspondents in 72
countries. The company is ranked 232nd on the Fortune Global 500 list of the
world's biggest corporations as of 2016.

17. UCO Bank

UCO Bank, formerly United Commercial Bank, established in 1943

in Kolkata, is a major government-owned commercial bank of India. During FY
2013-14, its total business was 4.55 lakh crore. Based on 2014 data, it is ranked
1860 on Forbes Global 2000 List. UCO Bank was ranked 294th among India's most
trusted brands according to the Brand Trust Report 2014, a study conducted by Trust
Research Advisory. It was a rise of 796 ranks considering it was listed at the 1090th
position among India's most trusted brands in the Brand trust Report 2013. As of 6
January 2017 the bank had 4,000 plus service units 49 zonal offices spread all over
India. It also has two overseas branches in Singapore and Hong Kong. UCO Bank's
headquarters is on BTM Sarani, Kolkata.

18. Union Bank of India

Union Bank of India (UBI; BSE: 532477) is one of the largest government-
owned banks of India (the government owns 63.44% of its share capital). It is listed
 on the Forbes 2000, and has assets of USD 13.45 billion. All the bank's branches
have been networked with its 6909 ATMs as on 30 September 2015. Its online
Telebanking facility are available to all its Core Banking Customers - individual as
well as corporate. As of September 2016, UBI has 4214 branches. Four of these are
overseas in Hong Kong, Dubai International Financial Centre, Antwerp, and Sydney
(Australia). UBI also has representative offices at Shanghai, Beijing and Abu Dhabi.
Lastly, UBI operates in the United Kingdom through its wholly owned subsidiary,
Union Bank of India (UK).

19. United Bank of India

United Bank of India is an Indiangovernment-owned financial

services company headquartered in Kolkata, India. Presently the bank has a three-tier
organisational setup consisting of its head office in Kolkata, 35 regional offices and
2005 branches spread all over India. However, its major presence is in Northern
India. The bank has three full-fledged overseas branches, one each at Kolkata, New
Delhi and Mumbai. United Bank of India now aims to expand its international
activities.

On 30 March 2009, the Indian government approved the restructuring of United Bank
of India. The government proposed to invest 2.5 billion rupees in shares by 31 March
and another 5.50 billion in the next fiscal year in Tier-I capital instruments. The move
is part of the Indian government's program to improve the capital base of the state-
owned banks.

20. Vijaya Bank

Vijaya Bank is a public sector bank with its corporate office in Bangalore,
Karnataka, India. It is one of the nationalised banks in India. The bank offers a wide
range of financial products and services to the customers through its various delivery
channels. The bank has a network of 2031 branches (March 2017) throughout the
country and over 4000 customer touch points including 2001 ATMs

21. IDBI Bank

IDBI Bank is an Indian government-owned financial service company,

formerly known as Industrial Development Bank of India, headquartered
in Mumbai, India. It was established in 1964 by an Act of Parliament to provide
credit and other financial facilities for the development of the fledgling Indian
industry.Central government is the owner of this bank and employees will be called
as Central Govt staffs. It is currently 10th largest development bank in the world in
terms of reach, with 3700 ATMs, 1995 branches, including one overseas branch at
Dubai, and 1382 centers. It is one of 21 commercial banks owned by the Government
of India. The Bank has an aggregate balance sheet size of INR 3.74 trillion as on 31
March 2016.
Emergence of public sector banks
The Central Government entered the banking business with the nationalization of the
Imperial Bank Of India in 1955. A 60% stake was taken by the Reserve Bank of India and the
new bank was named as the State Bank of India. The seven other state banks became the
subsidiaries of the new bank in 1959 when the SBI(Subsidiary Bank's) Act was passed.[2] The
next major nationalisation of banks took place on 19 the July 1969 when the government of
India, under prime minister Indira Gandhi, nationalised an additional 14 major banks. The
total deposits in the banks nationalised in 1969 amounted to 50 crores. This move increased
the presence of nationalised banks in India, with 84% of the total branches coming under
government control.[3]
The next round of nationalisation took place in April 1980. The government nationalised six
banks. The total deposits of these banks amounted to around 200 crores. This move led to a
further increase in the number of branches in the market, increasing to 91% of the total
branch network of the country. The objectives behind nationalisation were:

To break the ownership and control of banks by a few business families,

To prevent the concentration of wealth and economic power,
To mobilize savings from masses from all parts of the country,
To cater to the needs of the priority sectors......
total public sector banks are 21 including IDBI .

These are banks where majority stake is held by the Government of India.
Examples of public sector banks are: SBI, Bank of India, Canara Bank, etc.

Private Sector Banks

The private-sector banks in India represent part of the Indian banking sector that is
made up of private and public sector banks.The "private-sector banks" are banks where
greater parts of share or equity are not held by the government but by private share holders.

Banking in India has been dominated by public sector banks (since the 1969) when all
major banks were nationalised by the Indian government. However, since liberalisation in
government banking policy in the 1990s, old and new private sector banks have re-emerged.
They have grown faster & bigger over the two decades since liberalisation using the latest
technology, providing contemporary innovations and monetary tools and techniques. The
private sector banks are split into two groups by financial regulators in India, old and new.
The old private sector banks existed prior to the nationalisation in 1969 and kept their
independence because they were either too small or specialist to be included in
nationalisation. The new private sector banks are those that have gained their banking license
since the liberalisation in the 1990s.
 The Nedungadi Bank was the first private sector bank in India which was founded in
1899 by Rao Bahadur T.M. (Thalakodi Madathil) Appu Nedungadi in Kozhikode, Kerala.

These are banks majority of share capital of the bank is held by private individuals.
These banks are registered as companies with limited liability. Examples of private sector
banks are: ICICI Bank, Axis bank, HDFC, etc. Old private-sector banks[edit]

The banks, which were not nationalized at the time of bank nationalization that took
place during 1969 and 1980 are known to be the old private-sector banks. These were not
nationalized, because of their small size and regional focus. Most of the old private-sector
banks are closely held by certain communities their operations are mostly restricted to the
areas in and around their place of origin. Their Board of directors mainly consist of locally
prominent personalities from trade and business circles. One of the positive points of
these banks is that, they lean heavily on service and technology and as such, they are likely to
attract more business in days to come with the restructuring of the industry round the corner.

List of the old private-sector banks in India

Name

1. Nedungadi Bank ( Merged with Punjab National Bank in 2003)

Rao Bahadur T.M. (Thalakodi Madathil) Appu
Nedungadi established Nedungadi Bank in 1899 at Calicut in Kerala. It was first
private sector commercial bank to be set up in South India. The bank was
incorporated in 1913. In 1964 it acquired the Cochin National Bank in Trichur,
and then the year after Nedungadi took over selected assets and liabilities of the
Coimbatore National Bank (est. 25 January 1933). Cochin National Bank had
three offices and Coimbatore National Bank had only one.
Over time, Nedungadi established some 174 branches, including branches at all
major metropolitan cities such as New
Delhi, Calcutta, Chennai, Mumbai, Ahmedabad, etc.

2. City Union Bank

The City Union Bank Limited is an Indian bank. The Kumbakonam Bank
Limited, as it was at first called, was incorporated as a limited company on 31
October 1904. The bank initially preferred the role of a regional bank in
the Thanjavur district of Tamil Nadu. As of 30 September 2017, City Union Bank
has a network of 557 computerized branches and 1,526+ ATMs across the
 country. The bank also provides a gamut of technological services like net
banking, mobile banking, self-service kiosks, Bulk Note Acceptors and Point of
Sales etc. To cater to the needs of customers for many different walks of life, the
banks also have a wide offering of savings and deposit products to meet the
demand of various customers. It also offers many loan products to service the
financial needs of small individual customers to large industries.

3. Karur Vysya Bank

Karur Vysya Bank (Tamil) is an Indian
private-sector bank, headquartered in Karur in Tamil Nadu. It was set up in 1916
by M. A. Venkatarama Chettiar and Athi Krishna Chettiar. The bank primarily
operates in treasury, corporate/wholesale banking and retail banking segments.
KVB provides services such as personal, corporate, agricultural banking and
services to NRIs and MSME. Under personal banking, the bank provides housing
loan, personal loan; insurance; and fixed deposits among others. Under corporate
banking, KVB provides services like corporate loans; demat account, multicity
current account and general insurance among others. Schemes provided by KVB
under agricultural banking include Green Harvester, Green Trac and KVB Happy
Kisan among others. Under MSME, the bank provides products such as KVB
MSME Cash, KVB MSME Term Loan, KVB MSME Vendor Bill Discounting
and KVB MSME Standby Term Loan among others. The bank had added more
branches and 10 ATMs during the year thus bringing the total to 735 branches
and 1,748 ATMs as on Mar 31, 2017. It introduced a number of initiatives in
FY16 like reloadable cards, kisan credit cards, automatic passbook kiosk, e-book,
etc. The latest being introduction of fast tag and UPI based payment system.
Total business volume is 95,000 crore as on Mar 31, 2017.

4. Catholic Syrian Bank

The Catholic Syrian Bank Limited (CSB) is an Indian private sector bank with
its headquarters at Thrissur, Kerala, India. It is one of the oldest banks in India.
The bank has a network of over 420 branches and more than 240 ATMs across
India.

5. Tamilnad Mercantile Bank

Tamilnad Mercantile Bank Limited (TMB) (Tamil)
is a bank headquartered at Tuticorin, Tamil
Nadu, India. TMB was founded in 1921 as the Nadar Bank, but changed its name
 to Tamilnad Mercantile Bank in November 1962 to widen its appeal beyond
the Nadar community. For the financial year 2016-2017, the bank reported a net
profit of 3166 million.[1][5][6] The bank currently has 507 full branches
throughout India, 12 Regional offices and eleven Extension Counters, six central
processing centres, one Service Branch, four Currency Chests, 19 eLobby centres
and 1094 Automated Teller Machines (ATM).[7][8] The bank has been expanding
its footprint all over India.

6. Nainital Bank ( Wholly owned subsidiary of Bank Of Baroda)

The Nainital Bank Limited (NTB) (known as Nainital Bank)[2] (Hindi:
) is a scheduled commercial bank founded in 1922. The
bank is a subsidiary of Bank of Baroda. The bank has expanded to Uttar
Pradesh and Uttarakhand, and has over 130 branches
in Rajasthan, Delhi and Haryana.[1][3][4] It has a total business of more than Rs.
8000[5] (Crore) and aims to be TTC (Ten Thousand Crore),[6] and is listed as
a scheduled bank by the Reserve Bank of India.

7. Karnataka Bank
The Karnataka Bank Limited (Kannada: ) is a
major banking institution based in the coastal city of Mangaluru in Karnataka,
India. The Reserve Bank of India has designated Karnataka Bank Limited as an
A1+ class Scheduled Commercial Bank.
Karnataka Bank Limited currently has a network of 773 branches, 1,398 ATM's
and 111 e-lobbies/mini e-lobbies across 22 states and 2 Union territories. It has
over 8000 employees and 8.2 million customers throughout the country. Its
shares are entirely privately owned by over 1,46,000 shareholders. The tag line of
the bank is "Your Family Bank Across India".

8. Lakshmi Vilas Bank

Lakshmi Vilas Bank (Tamil) was founded
in 1926 by a group of seven businessmen of Karur under the leadership of Shri
V.S.N. Ramalinga Chettiar. Their objective was to cater to the financial needs of
people in and around Karur who were occupied in trading businesses, industry
and agriculture. The bank was incorporated on November 3, 1926 under the
Indian Companies Act, 1913, and obtained the certificate to commence business
on November 10, 1926. Subsequent to introduction of the Banking Regulations
Act, 1949 and Reserve Bank of India as the regulator for the banking sector, the
 bank obtained its banking license from RBI on 19,June 1958, and on 11, August
1958 it became a scheduled commercial bank signifying capability to operate as
a full-fledged commercial bank.

9. Dhanlaxmi Bank
Dhanlaxmi Bank Ltd is an old private sector bank headquartered
in ThrissurCity, Kerala, India. Dhanalakshmi Bank Ltd was incorporated on 14
November 1927 at Thrissur city,Kerala with a capital of 11,000 and 7
employees. It became a Scheduled Commercial Bank in the year 1977. Today it
has 280 branches and 398 ATMs spread over the states of Kerala, Tamil
Nadu, Karnataka, Andhra Pradesh, Telangana, Maharashtra, Gujarat, Delhi, West
Bengal, Madhya Pradesh, Punjab, Uttar Pradesh, Rajasthan, Chandigarh, Goa,
and Haryana.

10. South Indian Bank

South Indian Bank Limited (SIB) (BSE: 532218, NSE: SOUTHBANK) is a
major private sector bank headquartered at Thrissur in Kerala, India. South Indian
Bank has 850 branches, 4 service branches,48 ext.counters and 20 Regional
Offices spread across more than 27 states and 3 union territories in India. It has
set up 1320[1] ATMs and 17 Bulk Note Acceptor/Cash Deposit Machines all
over India.

11. ING Vysya Bank (Merged with kotak Mahindra bank)

ING Vysya Bank (Kannada: ..
) was a privately owned Indian multinational bank based
in Bangalore, with retail, wholesale, and private banking platforms formed from
the 2002 purchase of an equity stake in Vysya Bank by the Dutch ING Group.
This merger marked the first between an Indian bank and a foreign bank.[3] Prior
to this transaction, Vysya Bank had a seven-year-old strategic alliance with
erstwhile Belgian bank Banque Bruxelles Lambert, which was also acquired by
ING Group in 1998.

12. Federal Bank

The Federal Bank Limited is a major private sector commercial bank
headquartered at Aluva, Kochi, Kerala. As on 31 March 2016, Federal Bank has
1252 branches and 1680 ATMs across the country. Its balance-sheet stood at Rs.
 1.37 trillion as of end March 2016 and its Net Profit stood at Rs. 475 crore for the
fiscal year.

13. Jammu and Kashmir Bank

The Jammu and Kashmir Bank (Urdu; ) was founded on 1 -
October - 1938 under letters patent issued by the Maharaja of Jammu and
Kashmir, Hari Singh. The Raja had invited the eminent investors to become the
founding directors and shareholders of the bank. The most notable of which were
Pandit Sriniwas Magotra, Abdul Aziz Mantoo, Pesten jee and the Bhaghat
Family, all of whom acquired major shareholdings.

14. RBL Bank

RBL Bank Limited is a scheduled commercial bank, headquartered in the
Kolhapur region of Maharashtra, India. Founded in August 1943, RBL is one of
the oldest private sector banks in India. The Bank currently services
approximately 3.15 million customers [2] and has a total business size of over Rs.
64,000 Crores[3]. It offers a range of banking products and services categorized
largely in 5 verticals - Corporate & Institutional Banking, Commercial
Banking, Retail Banking, Agri & Development Banking and Financial
Markets.[4] As of June 2017, ICRA has reaffirmed the rating of [ICRA] A1+ to
the Rs 2,250 Crore (Enhanced from Rs. 1,500 Crore) Certificates of Deposits
Programme of RBL Bank. It has also reaffirmed the rating of [ICRA]MAA- with
stable outlook on the Fixed Deposit Programme and the rating of [ICRA] A1+ to
the Short Term Fixed Deposits Programme of the bank.

15. SBI Commercial and international Bank

16. IDB Bank Ltd

(reverse merged with parent IDBI in 2004 to become IDBI Bank. Making this
public sector bank private)

17. Bank of Punjab (actually an old generation private bank since it was not founded
under post-1993 new bank licensing regime)
The Bank of Punjab is a Pakistani bank headquartered at BOP Tower, Main
Bouleveard, Gulberg, Lahore in Pakistan. It serves Pakistan and functions as an
international bank and is one of the prominent financial institutions of the country
holding AA ratings from PACRA.
 18. Centurion Bank of Punjab
(Merged Bank of Punjab in late 2005 to become Centurion Bank of Punjab,
acquired by HDFC Bank Ltd. in 2008)
The Centurion Bank of Punjab (formerly Centurion Bank) was
an Indianprivate sector bank that provided retail and corporate banking services.
It operated on a strong nationwide franchise of 403 branches and had over 5,000
employees. The bank listed its shares on the major Indian stock exchanges and on
the Luxembourg Stock Exchange. On 23 May 2008 HDFC Bank acquired
Centurion Bank of Punjab.

19. Global Trust Bank (India)

(Merged with Oriental Bank of Commerce)
Global Trust Bank (India) (GTB) was founded on 21 October 1994 and
commenced operations at Secunderabad. Its founders included Ramesh Gelli (its
first Chairman), Sridar Subasri, and Jayant Madhob, among others. The bank
introduced a number of technology-based innovations and responsive service.[1]
GTB was involved in the stock market scam of 2001, that the stockbroker Ketan
Parekh ran. GTB lent heavily to individuals speculating in the stock market;
when the market crashed the bank suffered extensive losses. One consequence
was that merger talks with UTI Bank fell through. The Reserve Bank of
India (RBI) forced Gelli to resign. Gelli's successor resigned after six months, and
Gelli's son joined the board of directors. In 2004, Gelli briefly returned to the
bank in February 2004 before being again forced to resign.

Foreign Banks

These banks are registered and have their headquarters in a foreign country but
operate their branches in our country. Examples of foreign banks in India are: HSBC,
Citibank, Standard Chartered Bank, etc

Foreign banks with branches in India

 List of banks which are incorporated outside India and are operating branches in India
(as of 31 January 2015):

Australian banks

1. Australia and New Zealand Banking Group

2. Commonwealth Bank of Australia

3. National Australia Bank

4. Westpac Banking Corporation

Bahraini banks

1. Bank of Bahrain and Kuwait

Bangladeshi banks

1. AB Bank

2. Sonali Bank

Belgian bank

1. Antwerp Diamond Bank

Canadian bank

1. Bank of Nova Scotia

Chinese bank

1. Industrial & Commercial Bank of China

French banks

1. BNP Paribas

2. Credit Agricole

3. Societe Generale
 German banks

1. Deutsche Bank

Indonesian bank

1. Bank Internasional Indonesia

Japanese banks

1. Mizuho Corporate Bank

2. Sumitomo Mitsui Banking

3. Bank of Tokyo-Mitsubishi

Mauritian bank

1. State Bank of Mauritius

Dutch bank

1. Rabobank

Qatari bank

1. Doha bank

Russian banks

1. Sberbank

2. VTB

Omani bank

1. HSBC Bank Oman

Singaporean banks

1. DBS Bank
2. United Overseas Bank

South African bank

1. FirstRand Bank

South Korean banks

1. Shinhan Bank

2. Woori Bank

Sri Lankan bank

1. Bank of Ceylon

Swiss banks

1. Credit Suisse

2. UBS AG

Taiwanese bank

1. Chinatrust Commercial Bank

Thai bank

1. Krung Thai Bank

UAE banks

1. Abu Dhabi Commercial Bank

2. Mashreq Bank

UK banks

1. HSBC

2. Barclays Bank
3. Standard Chartered Bank

US banks

1. American Express

2. Bank of America

3. Citibank

4. J.P. Morgan Chase Bank

Foreign banks with representative offices in India[edit]

List of foreign banks with representative offices in India (as of 31 January 2015):[1]

Austrian bank

1. Raiffeisen Zentralbank

Belgian bank

1. KBC Bank

Canadian banks

1. Royal Bank of Canada

2. Toronto Dominion Bank

French banks

1. Credit Industriel et Commercial

2. Natixis

German banks

1. Commerzbank

2. DZ Bank
3. KfW

4. Landesbank Baden-Wrttemberg

Italian banks

1. Banca Monte dei Paschi di Siena

2. Banca Popolare di Milano

3. Banca Popolare di Vicenza

4. Intesa Sanpaolo

5. UBI Banca

Malaysian bank

1. CIMB

Nepalese bank

1. Everest Bank

Norwegian bank

1. DNB ASA

Portuguese bank

1. Caixa Geral de Depositos

Russian banks

1. Gazprombank

2. Promsvyazbank

3. Vnesheconombank

South Korean banks

1. Industrial Bank of Korea

2. Kookmin Bank

3. Korea Exchange Bank

Spanish Banks

1. Banco de Sabadell

2. Banco Bilbao Vizcaya Argentaria

3. Caixabank

Sri Lankan bank

1. Hatton National Bank

Swedish bank

1. Skandinaviska Enskilda Banken

Swiss bank

1. Zurich Cantonal Bank

Taiwanese banks

1. Bank of Taiwan

2. Mega International Commercial Bank

Turkish bank

1. Bank Asya

UAE banks

1. Emirates NBD

2. First Gulf Bank

 UK bank

1. Duncan Lawrie

US banks

1. Bank of New York Mellon

2. Wells Fargo Bank

Singapore Banks

1. Development Bank of Singapore

Regional Rural Banks (RRBs)[edit]

List of Regional Rural Banks in India:[2]

Andhra Pradesh

1. Andhra Pragathi Grameena Bank

2. Andhra Pradesh Grameena Vikas Bank

3. Chaitanya Godavari Grameena Bank

4. Saptagiri Grameena Bank

Assam

1. Assam Gramin Vikash Bank

2. Langpi Dehangi Rural Bank

Arunachal Pradesh

1. Arunachal Pradesh Rural Bank

Bihar

1. Uttar Bihar Gramin Bank

2. Madhya Bihar Gramin Bank

3. Bihar Gramin Bank

Chhattisgarh

1. Chhattisgarh Rajya Gramin Bank

Gujarat

1. Dena Gujarat Gramin Bank

2. Baroda Gujarat Gramin Bank

3. Saurashtra Gramin Bank

Haryana

1. Sarva Haryana Gramin Bank

Himachal Pradesh

1. Himachal Pradesh Gramin Bank

Jharkhand

1. Jharkhand Gramin Bank

2. Vananchal Gramin Bank

Jammu & Kashmir

1. Jammu And Kashmir Grameen Bank

2. Ellaquai Dehati Bank

Karnataka

1. Kaveri Grameena Bank

2. Karnataka Vikas Grameena Bank

3. Pragathi Krishna Gramin Bank

Kerala

1. Kerala Gramin Bank

Madhya Pradesh

1. Narmada Jhabua Gramin Bank

2. Central Madhya Pradesh Gramin Bank

3. Madhyanchal Gramin Bank

Maharashtra

1. Maharashtra Gramin Bank

2. Vidarbha Kokan Gramin Bank

Manipur

1. Manipur Rural Bank

Meghalaya

1. Meghalaya Rural Bank

Mizoram

1. Mizoram Rural Bank

Nagaland

1. Nagaland Rural Bank

Odisha

1. Odisha Gramya Bank

2. Utkal Grameen Bank

 Punjab

1. Punjab Gramin Bank

2. Malwa Gramin Bank

3. Sutlej Gramin Bank

Puducherry

1. Puduvai Bharathiar Grama Bank

Rajasthan

1. Baroda Rajasthan Kshetriya Gramin Bank

2. Marudhara Rajasthan Gramin Bank

Tamil Nadu

1. Pandyan Grama Bank

2. Pallavan Grama Bank

Telangana

1. Telangana Grameena Bank

Tripur

1. Tripura Gramin Bank

Uttar Pradesh

1. Sarva UP Gramin Bank

2. Prathama Bank

3. Allahabad UP Gramin Bank

4. Baroda UP Gramin Bank

5. Gramin Bank Of Aryavrat

6. Kashi Gomti Samyukt Gramin Bank

7. Purvanchal Bank

Uttarakhand

1. Uttarakhand Gramin Bank

West Bengal

1. Bangiya Gramin Vikash Bank

2. Paschim Banga Gramin Bank

3. Uttarbanga Kshetriya Gramin Bank

Cooperative banks[edit]

State Cooperative Banks (SCBs)[edit]

List of State Cooperative Banks in india:[3]

1. Andaman and Nicobar State Co-operative Bank

2. Andhra Pradesh State Co-operative Bank

3. Arunachal Pradesh State Co-operative Apex Bank

4. Assam Co-operative Apex Bank

5. Bihar State Co-operative Bank

6. Chandigarh State Co-operative Bank

7. Chhattisgarh Rajya Sahakari Bank Maryadit

8. Delhi State Co-operative Bank

9. Goa State Co-operative Bank

10. Gujarat State Co-operative Bank

11. Haryana State Co-operative Apex Bank

12. Himachal Pradesh State Co-operative Bank

13. Jammu and Kashmir State Co-operativ Bank

14. Jharkhand State Co-operative Bank

15. Karnataka State Co-operative Apex Bank

16. Kerala State Co-operative Bank

17. Madhya Pradesh Rajya Sahakari Bank Maryadit

18. Maharashtra State Co-operative Bank

19. Manipur State Co-operative Bank

20. Meghalaya Co-operative Apex Bank

21. Mizoram Co-operative Apex Bank

22. Nagaland State Co-operative Bank

23. Odisha State Co-Operative Bank

24. Pondichery State Co-operative Bank

25. Punjab State Co-operative Bank

26. Rajasthan State Co-operative Bank

27. Sikkim State Co-operative Bank

28. The Tamil Nadu State Apex Co-operative Bank

29. Telangana State Co-Operative Apex Bank Limited

30. Tripura State Co-operative Bank

31. Uttar Pradesh Co-operative Bank

32. Uttarakhand State Co-operative Bank

33. West Bengal State Co-operative Bank

Urban Cooperative Banks (UCBs)[edit]

List of Scheduled Urban Cooperative Banks in India:[4]

1. Apna Sahakari Co-Op Bank Ltd

2. Ahmedabad Mercantile Co-Op Bank

3. Kalupur Commercial Coop. Bank

4. Mehsana Urban Co-Op Bank

5. Nutan Nagarik Sahakari Bank

6. Rajkot Nagrik Sahakari Bank

7. Sardar Bhiladwala Pardi Peoples Coop Bank

8. Surat Peoples Coop Bank

9. Rajdhani Nagar Sahkari Bank

10. Adhyapaka Urban Co-operative Bank

11. Andhra Pradesh Mahesh Co-Op Urban Bank

12. Indian Mercantile Co-operative Bank

13. Abhyudaya Co-operative Bank

14. Bassein Catholic Co-operative Bank

15. Bharat Co-operative Bank (Mumbai)

16. Bharati Sahakari Bank

17. Bombay Mercantile Co-operative Bank

18. Citizencredit Co-operative Bank

19. Dombivli Nagari Sahakari Bank Ltd

20. Goa Urban Co-operative Bank

21. Gopinath Patil Parsik Janata Sahakari Bank

22. Greater Bombay Co-operative Bank

23. Jalgaon Janata Sahakari Bank

24. Janakalyan Sahakari Bank

25. Janalaxmi Co-operative Bank

26. Janata Sahakari Bank

27. Junagadh Commercial Co-operative Bank

28. Kallappanna Awade Ichalkaranji Janata Sahakari Bank

29. Kalyan Janata Sahakari Bank

30. Karad Urban Co-operative Bank

31. Mahanagar Co-operative Bank

32. Mapusa Urban Co-operative Bank of Goa

33. Nagar Urban Co-operative Bank

34. Nasik Merchant's Co-operative Bank

35. New India Co-operative Bank

36. NKGSB Co-operative Bank

37. Pravara Sahakari Bank

38. Punjab & Maharashtra Co-operative Bank

39. Rupee Co-operative Bank

40. Sangli Urban Co-operative Bank

41. Saraswat Co-operative Bank

42. Shamrao Vithal Co-operative Bank

43. Solapur Janata Sahakari Bank

44. Thane Bharat Sahakari Bank

45. The Kapole Co-operative Bank

46. TJSB Sahakari Bank

47. Zoroastrian Co-operative Bank

48. Nagpur Nagrik Sahakari Bank

49. Shikshak Sahakari Bank

50. Akola Janata Commercial Co-operative Bank

51. Akola Urban Co-operative Bank

52. Khamgaon Urban Co-operative Bank

53. Muneshwra swamy BANK

54. Eenadu Urban Co operative Bank

55. Rohit Kataria Co-operative Bank

56. Dakshin Barasat Service Co-Operative Society Private Limited; Dakshin Barasat,
Kolkata

57. Sangli District Primary Teachers Bank Ltd, Sangli

58. Chartered Mercantile M.B. Ltd, Lucknow, U.P.

 59. Lic of india staff co operative bank. H.O Pattom Thiruvananthapuram[5]

60. Akhand Anand Co-Op Bank

61. Varchha Co-op Bank

62. The Surat District Co-Op Bank Ltd

63. THE SUTEX CO-OP. BANK LTD.

64. The Bardoli Nagarik Sahakari Bank Ltd

Regional Rural Banks

Regional Rural Banks were established under the provisions of an Ordinance

promulgated on the 26th September 1975 and the RRB Act, 1976 with an objective to ensure
sufficient institutional credit for agriculture and other rural sectors. The area of operation of
RRBs is limited to the area as notified by GoI covering one or more districts in the State.

RRBs are jointly owned by GoI, the concerned State Government and Sponsor Banks (27
scheduled commercial banks and one State Cooperative Bank); the issued capital of a RRB is
shared by the owners in the proportion of 50%, 15% and 35% respectively.

Prathama bank is the first Regional Rural Bank in India located in the city Moradabad in
Uttar Pradesh.

Type of Major Shareholders Major Players

Commercial
Banks
Public Sector Government of India SBI, PNB, Canara Bank, Bank of
Banks Baroda, Bank of India, etc

Private Sector Private Individuals ICICI Bank, HDFC Bank, Axis

Banks Bank, Kotak Mahindra Bank, Yes
Bank etc.

Foreign Banks Foreign Entity Standard Chartered Bank, Citi

Bank, HSBC, Deutsche Bank,
BNP Paribas, etc.

Regional Rural Central Govt, Andhra Pradesh Grameena Vikas

Banks Concerned State Govt and Bank, Uttranchal Gramin Bank,
Sponsor Bank in the ratio of Prathama Bank, etc.
50 : 15 : 35

Cooperative Banks

A co-operative bank is a financial entity which belongs to its members, who are at the
same time the owners and the customers of their bank. Co-operative banks are often created
by persons belonging to the same local or professional community or sharing a common
interest. Co-operative banks generally provide their members with a wide range of banking
and financial services (loans, deposits, banking accounts, etc).

They provide limited banking products and are specialists in agriculture-related products.

Cooperative banks are the primary financiers of agricultural activities, some small-scale
industries and self-employed workers.

Co-operative banks function on the basis of no-profit no-loss.

Anyonya Co-operative Bank Limited (ACBL) is the first co-operative bank in India located
in the city of Vadodara in Gujarat.

The co-operative banking structure in India is divided into following main 5 categories:

Primary Urban Co-op Banks

Primary Agricultural Credit Societies

District Central Co-op Banks

 State Co-operative Banks

Land Development Banks

Difference between Scheduled Commercial and Schedule Co-operative Banks

The basic difference between scheduled commercial banks and scheduled cooperative
banks is in their holding pattern. Scheduled cooperative banks are cooperative credit
institutions that are registered under the Cooperative Societies Act. These banks work
according to the cooperative principles of mutual assistance.Also,unlike commercial banks
,these banks work on the basis of no-profit no-loss.

How Banks Function

Banks make money by lending your money out at interest and by charging you for
services provided. Banks keep on lending money.

The other big revenue items generated by banks are the fees they charge. Bank charge for
every service, whether it is for an electronic transaction, or permitting a transfer through the
Internet banking system.
 The banking industry in India is highly regulated. Few important regulations are
mentioned below:

Regulatory Requirements

A bank has to set aside a certain percentage of total funds to meet regulatory requirements.
The primary regulatory ratios are Cash Reserve Ratio (CRR) and Statutory Liquidity
Ratio (SLR). RBI uses both these instruments to regulate money supply in the economy.

CRR is the percentage of net total of deposits a bank is required to maintain in form of cash
with RBI. Currently this ratio is at 5.5%. This is used to control the liquidity in the
economy. Higher the CRR, the lower is the amount that banks will be able to use for
lending activities and vice versa.

SLR is the minimum percentage of deposits that the bank has to maintain in form of gold,
cash and/or other approved securities. Currently, the SLR is 24%. This is used to regulate
the credit growth
 The core operating income of a bank is interest income (comprises 75-85% in the total
income of almost all Indian Banks). Besides interest income, a bank also generates fee-based
income in the form of commissions and exchange, income from treasury operations and other
income from other banking activities. As banks were assigned a special role in the economic
development of the country, RBI has stipulated that a portion of bank lending should be for
the development of under-banked and under-privileged sections, which is called the priority
sector. Current rules stipulate that domestic banks should lend 40% and the foreign banks
should lend 32% of their net credit to the priority sector. On the cost sides, the major items
for a bank are interest paid on different types of deposits, bonds issued and borrowings, and
provisioning cost for Non-performing Assets (NPAs).
Types of Businesses of Banks

The banking business can be broadly categorized into Retail Banking, Wholesale or
Corporate Banking, Treasury Operations and Other Banking Activities.

Business Segmentation

Retail Banking Loans to individuals (Housing loan, Auto loan, Education

loan and other personal loan) or small businesses.

Wholesale banking Loans to mid and large corporate (Project Finance, Working
Capital Loans, Terms Loans, Lease Finance, etc.)

Treasury Operations Investment in bonds, equity, Mutual Funds, commodities,

derivatives; trading and forex operations

Other Banking Hire purchase activities, leasing business, merchant

Activities banking, Syndication services, etc.

Retail banking also known as Consumer Banking is the provision of services by

a bank to individual consumers, rather than to companies, corporations or other banks.
Services offered include savings and transactional accounts, mortgages, personal loans, debit
cards, and credit cards. Retail banking segment is the highest margin business as compared to
other business segments in the banking industry. Currently, ICICI Bank is the largest players
in this segment in India. Other major players in this segment are SBI, PNB, HDFC Bank, etc.
Typical products offered by a retail bank include:

Savings /Current accounts

Debit cards

ATM cards

Credit cards

Travelers cheques

Mortgages

Home equity loans

Personal loans

Certificates of deposit/Term deposits

Wholesale banking is the provision of services by banks to organizations such

as Mortgage Brokers, large corporate clients, mid-sized companies, real estate
developers and investors, international trade finance businesses, institutional customer(such
as pension funds and government entities/agencies), and services offered to other banks or
other financial institutions.

Wholesale finance refers to financial services conducted between financial services

companies and institutions such as banks, insurers, fund managers, and stockbrokers.

Modern wholesale banks engage in:

Finance wholesaling

Underwriting

Market making

Consultancy

Mergers and acquisitions

Fund management
 Wholesale banking segment in India is largely dominated by large Indian banks
SBI, ICICI Banks, PNB, BoB, etc.

Treasury management (or treasury operations) includes management of an

enterprises holdings, with the ultimate goal of managing the firms liquidity and mitigating
its operational, financial and reputational risk. Treasury Management includes a firms
collections, disbursements, concentration, investment and funding activities. In larger firms,
it may also include trading in bonds, currencies, financial derivatives and the
associated financial risk management. Most banks have whole departments devoted to
treasury management and supporting their clients needs in this area

Bank Treasuries may have the following departments:

A Fixed Income or Money Market desk that is devoted to buying and selling interest
bearing securities

A Foreign exchange or FX desk that buys and sells currencies

A Capital Markets or Equities desk that deals in shares listed on the stock market.

A STUDY ON LEVELS OF EMPLOYEE PARTICIPATION WITH

THE HIERARCHY IN BANKING SECTOR : A COMPARATIVE

STUDY OF SBI & HDFC BANK

Anchal Pathak*

[email protected]

ABSTRACT

After 1991, the banking scenario has been changed completely, the impact of globalization
and

privatization has affected work culture of both public and private sector banks. The need for
some form

of employee or worker involvement was felt in the mid-1950s and 1960s, well after
independence, and

more by the government than by the employers because of the need of rapid industrialization.
The
greatest and widely accepted benefit of participation is the increased work ownership of
employee. An

employee is better able to relate himself/herself with his or her work and this improves
performance and

efficiency at work. This paper study the levels of employees participation at different
hierarchical level

in both public (SBI) and private (HDFC) sector banks in east region of Uttar Pradesh.To
measure the

participation level of employees, Psychological Participation Index (PPI) was used which
was developed

by A.P Singh and D.M Pestonjee. Further t-test, Chi- square test and ANOVA were applied
and it emerged

from the study that with the increase in hierarchical level the participation increases in SBI
where as

no such relationship was found in HDFC bank.

Keywords : Participative Management, Decision making, autonomy, opinion seeking,
involvement,
Psychological Participative Index (PPI).
INTRODUCTION
Among the various service sector activities, the banking industry in India has received high
priority. This is due to the reason that the banking sector is considered to be the lifeline of
any
economic activity as the contribution of this
industry to the economy's growth is direct,
considerable and commendable. The history of
Indian Banking shows a metamorphosis in the
growth of banks. The liberalization process has
compelled to bring about a considerable change in
the services and activities of commercial banks
which is due to increased competition faced by the
domestic public sector and private sector banks
from the foreign banks. After 1991, the banking
scenario has been changed completely, the impact
of globalization and privatization has affected work
culture of both public and private sector banks.
The above discussion clearly indicates that
globalization has brought about not only a
paradigm shift in the functions and operations of
Indian commercial banks which took them apart
 from the traditional banking activities, but also it
has bearing on the psychology of the employees to
adopt to the changing needs of the business and
satisfying the expectations of the customers. Thus
employees' participation has a unique
motivational power and a great psychological
value. Participation makes employees more
responsible, they are willing to take initiative and
A Study on Levels of Employee Participation with the Hierarchy in Banking Sector : A
Comparative.....
Vol. XI, No. 1; June 2015
59
contribute cost-saving suggestions and growth
oriented ideas. It is widely believed that employee's
participation affect employee's productivity and
they all can create competitive advantage for the
organization. The objective of participation for
management was initially limited to attaining
higher productivity through a more committed
workforce; later, as behavioral theories evolved,
participation was thought and expected to achieve
more elaborate organizational ends, such as
improvement in employee morale, improved
industrial relations, motivation and commitment
and quality of work life or even what Abraham
Maslow termed self-actualization.
REVIEW OF LITERATURE
Survey of the literature on participation of
employees builds on the idea of reasonable
autonomy. It is a mechanism for maximizing
flexibility and avoiding bureaucratic rigidity
Drucker (1993). Employee participation has been
emphasized in relation to job satisfaction as well
Cotton et al., (1988). When workers are given
opportunities to participate in decision making
processes there are positive gains for
organizational effectiveness and morale of
employees'. It has its strong influence on job
satisfaction. Monappaand Saiyadain(2005) view
that almost all forms of participation can be
considered as instruments for employee
development, because, when workers' help is
sought in solving work problems it tends to
increase their job satisfaction. Morse and Reimer
 (1956) have shown that greater participation
leads to productivity. Vroom (1960) found that
participation in decision-making has positive
effect on attitude and motivation. Kim,
Soonhee(2002) has published that, Researchers
and practitioners in both the public and private
sectors agree that participative management
improves employees' job satisfaction. Public
agencies have also turned to strategic planning to
enhance government performance and
accountability. Evangeline Caridas (2004) has
written paper which attempts to illustrate the
effectiveness and importance of participative
management in a brokerage firm. Ruth Alas
(2007) in his research paper on "Impact of
Employee Participation on Job Satisfaction during
Change Process" explored that Estonian
companies have been in a continuing change
process during past decades. Ardekani and
Jahromi (2011) have conducted a research on
"Relationship between Participative Management
and Personnel Productivity: A Survey in
Gachsaran Gas and Oil Company". This survey
explores the relationship between participative
management and productivity of the employees
in 2010 in Iran. Srinivas Subba Rao, P. Suseela
Rani (2012) published research paper on titled
"Participative Management in Post Liberalization-
A case study of Indian Jute industry" in thisthe
researcher studied the importance and
application of participative management in post
liberalization in this industry.
OBJECTIVES OF THE STUDY
To assess and compare the levels of
participation among the employees of public
(SBI) and private sector (HDFC) banks.
To highlight the difference in levels of
participation and hierarchical level (scale)
among the employees of public (SBI) and
private sector (HDFC) banks.
Hypotheses
H01 There is no significant difference between
the levels of participation of the employees
belonging to public and private sector banks.
 H02 There is no significant difference between
the levels of participation of the employees
belonging to different hierarchical level
(scale) in public sector bank (SBI).
H03 There is no significant difference between
the levels of participation of the employees
belonging to different hierarchical level
(scale) in private sector bank (HDFC).
RESEARCH DESIGN
The research designed to be descriptive as
well as exploratory one, the present research
aimed at studying the levels of participation at
different hierarchical level among the employees
of HDFC and SBI.
MANAGEMENT INSIGHT
Vol. XI, No. 1; June 2015
60 [ ISSN 0973-936X ]
DATA COLLECTION
The data collected for the purpose of the
study was primary and secondary both. The
primary data used for the study was collected
through standard questionnaire Psychological
Participation Index (Singh &Pestonjee, 1978):
The Psychological participation index was used
to assess the level of employee's participation in
managerial decisions. This Index (PPI) has been
developed by Singh and Pestonjee (1978). The
Psychological Participation index comprises of
15 items which are in the form of positively
(true) and negatively (false) worded statements
in both Hindi and English Languages. Each
Statement has five response alternatives, namely,
definitely true, mostly true, sometimes true,
mostly false and definitely false. This index covers
four areas of the psychological participation,
namely, Decision- Making, Autonomy, Opinion-
Seeking, and Involvement.
SAMPLE SIZE
The sample size considered for the study
was 600 and the data was collected from the
various branches of SBI (300) and HDFC (300)
Bank in four cities Lucknow, Kanpur, Allahabad
and Varanasi (Lucknow Region) i.e. total of 600
employees from Uttar Pradesh. This is further
 raven as in Table 1.
Table 1 Distribution of Employees based on
Scale (Hierarchical Levels) in Banks.
UPTO ABOVE TOTAL
SCALE 3 SCALE 3
PUBLIC BANK 200 100 300
(SBI)
PRIVATE BANK 200 100 300
(HDFC)
TOTAL 400 200 600
300 white collared employees from public
sector bank (SBI).
300 white collared employees from private
sector bank (HDFC).
ANALYSIS OF DATA
Null Hypothesis H01: There is no significant
difference between the levels of participation of
the employees belonging to public and private
sector banks.
To test the our first null hypothesis H01 that
there is no significant difference between the
levels of participation of the employees belonging
to public and private sector banks, descriptive
statistics and independent sample t-test have
been performed as given in Table 2 presents the
mean, standard deviation, significant p-value for
public and private sector banks.
Table 2: Independent Sample t- test for Level of Participation of the Employees in
Public
and Private sector banks.
Sum of all PPI N MEAN STANDARD p- VALUE t- VALUE DECISION
scores DEVIATION MADE
Public Bank 300 45.68 7.23131
Private Bank 300 34.90 7.02623 .000 18.518 REJECTED
(Sig)
Table 2 and Figure 1 contains mean
participation scores for the employees belonging
to Public and Private sector banks. It can be
inferred from the Figure that mean sum of
Psychological Participation Index (PPI) scores is
much higher for Public sector bank (45.68) as
compared to Private sector bank (34.90), thus
employees in Public sector bank are much more
involved in decision making process as compared
 to Private sector bank.
Further, the test of significance was
conducted to evaluate the null hypothesis. The
independent samples t-test was computed to test
the significant difference between mean PPI
A Study on Levels of Employee Participation with the Hierarchy in Banking Sector : A
Comparative.....
Vol. XI, No. 1; June 2015
61
scores belonging to public and private banks and
value of static was found to be 18.518 with pvalue
(.000) which is less than 0.05 and thus,
proves to be significant. It shows that the
differences among the groups were real and not
due to chance.
Figure 1: Mean Scores for Levels of
Participation of the Employees in Public and
Private Sector Banks.
Thus, our first null hypothesis H01, i.e.,
"There is no significant difference between the
levels of participation of the employees belonging
to public and private sector banks" is rejected
and reveals that there is a significant difference
between the levels of participation among the
employees of public and private sector banks.
The main cause of lower levels of participation in
private sector banks is due to poor
communication, improper structure of employees
association, and less involvement of employees
in decision- making process related to targets,
promotions, and various financial and nonfinancial
policies in private banks.
Null Hypothesis H02: There is no significant
difference between the levels of participation of
the employees belonging to different hierarchical
levels (scale) in public sector bank.
To test the null hypothesis H04 that there is
no significant difference between the levels of
participation of the employees belonging to
different hierarchical levels (scale) in public sector
bank, descriptive statistics, chi-square, and ANOVA
have been performed as given in Tables 3 & 4.
Table 3 presents the descriptive statistics,
mean and standard deviation for employees
 having different hierarchical levels.
Table 3: Mean Participation Score &
Standard Deviation of Employees belonging
to different Hierarchical Level (Scale) in
Public Sector Bank.
Scale of N MEAN STANDARD
Employees
DEVIATION
Upto Scale 3 200 43.82 7.527
Above Scale 3 100 49.28 4.942
TOTAL 300 45.68 7.231
Figure 2: Mean Participation Scores of
Employees belonging to different Hierarchical
Level (Scale) in Public Sector Bank.
Mean scores for participation level and
standard deviation were computed for the
employees belonging to different hierarchical
level in public sector bank. Itisdiscerniblefrom
Figure2 that mean participation scores of
employees in terms of mean for public sector
bank was higher in employees belonged to Above
Scale 3 in comparison to employees belonged to
group of Upto Scale 3. Mean participation score
and standard deviation of employees up to scale
3 was found to be 43.82 & 7.527 whereas, for
above scale 3 mean score and standard deviation
was found to be 49.28 & 4.942.
Further, to test dependency of participation
level on hierarchical level chi-square test was
computed and ANOVA was applied to test the
significant difference between the scale
(hierarchical level) and impact of participation
level. The values of Chi-square test and ANOVA
have been given in Table 4.
MANAGEMENT INSIGHT
Vol. XI, No. 1; June 2015
62 [ ISSN 0973-936X ]
Table 4: Chi-square & ANOVA for
Hierarchical Level (Scale) and Level of
Participation in Public Sector Bank.
Test Value p-value made
of the Decision
Static
Chi-square 22.868 .000(sig.) Rejected
 ANOVA 43.904
In chi-square the value of static computed
was found to be 22.868 and p-value was found to
be (.000) which is less than 0.05 and was found
to be significant. Thus it can be inferred from the
result there is a significant difference between
the hierarchical level (scale) and levels of
participation in public sector bank or in other
words it can be said employees with higher
position in the hierarchy are more involved in
decision making process as compared to
employees with lower position in the hierarchy.
Further, ANOVA was applied and the F value
calculated was found to be 43.904 and was found
also significant thus the null hypothesis formulated
was rejected. The results revealed that there is a
significant difference between the levels of
participation and the hierarchical level of the
employees in public sector bank i.e. there is an
impact of increase in hierarchical level of
employees on participation level in public sector
bank.
Thus, our fourth null hypothesis H04, i.e.,
"There is no significant difference between the
levels of participation of the employees belonging
to different hierarchical levels (scale) in public
sector bank" is rejected and reveals that there is
a significant difference between levels of
participation and employees belonging to
different hierarchical level in public sector bank.
Null Hypothesis H03: There is no significant
difference between the levels of participation of
the employees belonging to different hierarchical
levels (scale) in private sector bank.
To test the null hypothesis H05 that there is
no significant difference between the levels of
participation of the employees belonging to
different hierarchical levels (scale) in private
sector bank, descriptive statistics, chi-square, and
ANOVA have been performed as given in Tables
5&6.
Table 5 presents the descriptive statistics,
mean and standard deviation for employees
having different hierarchical levels.
 Table 5: Mean Participation Score &
Standard Deviation of Employees belonging
to different Hierarchical Level (Scale) in
Private Sector Bank.
Scale of N MEAN STANDARD
Employees DEVIATION
Upto Scale 3 200 34.42 6.555
Above Scale 3 100 35.84 7.821
TOTAL 300 34.90 7.026
Figure 3: Mean Participation Score of
Employees belonging to different Hierarchical
Level (Scale) in Private Sector Bank.
Mean scores for participation level and
standard deviation was computed for the
employees belonging to different hierarchical
level in private sector bank. According to Figure
3, there was a very little difference in the mean
participation score for the employees belonging
to different hierarchical groups. Mean
participation score and standard deviation of
employees up to scale 3 was found to be 34.42 &
6.555 whereas, for above scale 3 it was found to
be 35.84 & 7.821.
Chi-square test was applied to find out
whether participation level of employees is
dependent on hierarchical level (scale) in private
A Study on Levels of Employee Participation with the Hierarchy in Banking Sector : A
Comparative.....
Vol. XI, No. 1; June 2015
63
sector bank. ANOVA test was applied in order to
find out that the difference between the
participation level and impact of hierarchical
level is significant or insignificant. The values of
Chi-square test and ANOVA have been given in
Table 6.
Table 6: Chi- square & ANOVA for
Hierarchical Level (Scale) and Level of
Participation in Private Sector Bank.
Test Value of p-value Decision
made
Chi-square 1.791 .181(not sig.) Not-
Rejected
ANOVA 2.750 .098(not sig.)
 In chi-square test computed value of static
was found to be very less i.e. 1.791 and the pvalue
was (0.181) which is more than 0.05 which
is not significant. Hence, the null hypothesis
formulated was not rejected i.e. there is no
significant difference between the hierarchical
level of the employees and levels of participation
in private sector bank.
Further, the value of F was also calculated
to analyze the significant difference between
different hierarchical level (scale) and levels of
participation, which was also found to be very
low i.e. 2.750 and p-value was found to be 0.98
which is also more than 0.05 and not significant,
thus it can be inferred that there is no significant
difference between the levels of participation
and the employees belonging to different
hierarchical level (scale) in private sector bank.
Thus our fifth null hypothesis H05 i.e., "There
is no significant difference between the levels of
participation of the employees belonging to
different hierarchical levels (scale) in private
sector bank" is not rejected, hence there is no
significant difference between the levels of
participation of the employees belonging to
different hierarchical levels in private sector bank
this may be due hierarchical structure in private
sector bank (HDFC) is not well defined.
CONCLUSIONS
The study reveals that there is a significant
difference between the level of participation
of the employees belonging to public &
private sector bank on the basis of their
mean scores obtained i.e. 45.68 for public
sector bank and 34.90 for private sector
bank. It can also be interpreted from the
results obtained that level of participation is
much higher for the employees in public
sector bank as compared to private sector
bank thus employees in Public sector bank
are much more involved in decision making
process as compared to Private sector bank
and the main reasons for lower levels of
participation in private sector banks is due
 to poor communication, improper structure
of employees association, and less
involvement of employees in decisionmaking
process related to targets, working
hours, and various financial and non-financial
policies in private banks.
It has been also found from the study that
there is a significant difference between the
participation levels of the employees
belonging to different hierarchical level
(scale) in public sector bank i.e. participation
levels of employees in public sector bank is
affected by different hierarchical level in
public sector bank thus, making us to
conclude that employees with higher position
in hierarchy are more involved in decision
making in public sector bank. It has been
also found from the study that no relationship
exists between the level of participation and
hierarchical level among the employees of
private sector bank. The insignificant value
for chi-square and ANOVA also show that
there is no significant difference between
the levels of participation and the employees
belonging to different hierarchical level
(scale) in private sector bank.
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