There are many speculations regarding the future of public sector banks amidst the emergence of high tech private banks, payment banks and small finance banks. Many are even criticizing the measures taken by the public sector banks to survive in the competition. Everyone has some or other opinion about the whole scenario but we cannot the ground reality is not that simple. Hence it should not be taken as granted. To understand the reality of today's problems we must consider the real difference between public sector banks and private banks. The public sector banks were established with a socialistic view of securing general populations interest before banks. Where as private banks work with a sole purpose of earning profit which makes their approach more direct and simple.
                   Now first things first, the burden of financial inclusion should be removed from the public sector banks what I mean is Public sector banks should also formulate policies to gain maximum profits. The biggest difference between Public and Private banks is their service. I am not talking about customer satisfaction but the amount of revenue generated by private banks for their value added service. And of course it also pleases the customer too. Public sector banks are still relying on outdated instruments to generate revenues and missing on a huge opportunity in digital world. One thing is for sure that we cannot earn any money in banking without using basic tools like lending money for interest but if the rate of NPA creation is considered that option is not sufficient for surviving in the competition. So it is necessary for Public banks to introduce new financial instruments and value added services for their existing customers which will create new income sources for them.
                       Another thing which is highly neglected is the market capitalization of all public sector banks. The private giant HDFC alone overshadows all public sector banks altogether being the third largest company in the Indian stock market. Public sector banks should have highly dedicated fund management system to utilize the customer base. Only SBI has been active in this regard with its top level mutual funds in small cap and mid cap.
                And at last there is one more thing, many people think that and even government is thinking that merger of all public sector banks could be the final solution but in my opinion nothing will work until the "not my concern or not my job" attitude of employees of public sector banks changes. Everyone should have a sense of understanding that even their so called most secure jobs are not so secure if they cannot perform well in near future.