PSBs need a Techtonic shift

Presented by:
Aditya Pani(PGFC1904)
Abhishek Dimri(PGFC1901)
Tanya Mendiratta(PGFC1942)
Public Sector Banks
• Public sector banks are those where majority of the
stake in the bank is held by government. The shares
of these banks are listed on stock exchanges. There
are a total of 12 Public Sector Banks alongside one
state-owned Payments Bank in India.
Private Sector Banks
• The private sector banks in India are banks where the
majority of the shares or equity are not held by the
government but by private share holders.
 Introduction
• PSBs have been dragged down by bad loans
• Their market valuations are also lower
• Public banks accounted for 85% of bank frauds
• Their gross non-performing assets exceeded Rs 7.4
lakh crore in FY19.
• Every rupee of taxpayer money invested in PSBs in
2019 lost its value by 23 paise,
 PSBs need a Techtonic Shift
• Banks are getting merged to create bigger ones
• The survey proposes that these banks stick GPS
devices on pledged assets to track the location of
assets.
• GPS to conduct better due diligence on borrowers.
• State-run banks can pool all their data into one entity
like in the case of GST Network.
• PSBs, need significant investments in capabilities to
exploit the coming data rich environment in India.