Public Sector Bank Domination: Pros

Helps government in implementation of financial inclusion

Implementing governments welfare schemes
Has large size and geographical reach
Access to low cost deposits enables them to lend to corporates at
competitive rates
Easy to regulate
Proven fact that states having majority of public banks do better than
those with private banks during a credit crisis.
Chances of country performing better during recession. Ex: of North
Dakota Bank

Public Sector Bank Domination:

Cons
Nationalization stifles innovation in banking
Pre-emption of significant proportion of lendable
resources to government sectors leading to sub optimal
use of credit, low levels of investment & growth, decline
in productivity and profitability
Slow use of recent technological advances
Slow customer service
Chances of system wide corruption
Chances of low operating efficiency

Top Public sector Banks in India

State Bank of India and Subsidiaries
Bank of Baroda
Punjab National Bank
IDBI Bank
Central Bank of India