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  • Introduction To Public Bank

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    Utsav Jogani
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    Public sector banks are banks where the government holds a majority stake, essentially making them government-run. They issue shares to the general public but remain more than 50% government-owned to prioritize social welfare over profit maximization. The government injects capital into public sector banks, allowing them to grow and serve customers from all over the country through loans and other programs at lower fees than private banks. The key role of public sector banks is to mobilize funds from various deposit plans and lend them at higher interest rates to generate profit.

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    Introduction to public sector banks

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    Introduction to public bank

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    Public sector banks are banks where the government holds a majority stake, essentially making them government-run. They issue shares to the general public but remain more than 50% government-owned to prioritize social welfare over profit maximization. The government injects capital into public sector banks, allowing them to grow and serve customers from all over the country through loans and other programs at lower fees than private banks. The key role of public sector banks is to mobilize funds from various deposit plans and lend them at higher interest rates to generate profit.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    15 views1 page

    Introduction To Public Bank

    Uploaded by

    Utsav Jogani
    Public sector banks are banks where the government holds a majority stake, essentially making them government-run. They issue shares to the general public but remain more than 50% government-owned to prioritize social welfare over profit maximization. The government injects capital into public sector banks, allowing them to grow and serve customers from all over the country through loans and other programs at lower fees than private banks. The key role of public sector banks is to mobilize funds from various deposit plans and lend them at higher interest rates to generate profit.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    INTRODUCTION TO PUBLIC SECTOR BANK:

    1)A Public Sector bank is one in which, the Government of India holds a majority stake. It is
    as good as the government running the bank. Since the public decide on who runs the
    government, these banks that are fully/partially owned by the government are called public
    sector banks.

    2)Public Sector bank means any Government Sector Bank/Institute that goes public. means
    that issues it share to general public. It also has a greater share of government (more than
    50%) so that the main motto of social welfare other than Maximizing Profit remains.

    3) Since public sector banks are owned by the government, the government usually injects
    new capital into them, allowing them to grow. People come from all over the country to use
    these banks for loans or to store their money in the lockers. Public Sector Banks also
    provide a variety of programs to assist their customers, and their fees are typically lower
    than those charged by Private Sector Banks.

    4) Every public sector bank’s principal job is to mobilise the funds and resources gathered
    via numerous plans and deposits over diverse periods and lend them to its clients at
    increased interest rates in order to make a profit from the funds.

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