Private Sector Banks in India - A SWOT Analysis Prof. Chowdari Prasad Dr. K.S. Srinivasa Rao Associate Professor (Finance) Assistant Professor(QM Area) T.A.Pai Management Institute T.A. Pai Management Institute & Manipal- 576104 Manipal-576 I04 Kamataka, India. Kamataka, India. Email:
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[email protected] TAPMI 'VORKING PAPER SERIES NO. 2005/04 The objective of TAPMI working paper series is to help Faculty members of TAPMI to test out their research ideas/findings at the pre-publication stage. T. A. Pai Management Institute v Manipal -576 104, Udupi Dist., Karnataka TAPMI Private Sector Banks in India -A SWOT Analysis Topic Area: Banking Abstract*: (Word Count: 300) Private Sector Banks existed for over a century in India. Fonnation of State Bank Group in 1955 / 1957 and two nationalizations in 1969 and 1980 lead to dominant Public Sector Banks. Economic reforms in 1991 and Banking Sector Refonns changed the scene totally. People generally rely on nationalized banks backed by Government. Change in mindset of the customers forced RBI to allow new private banks a decade back. WTO and globalization initiated more foreign banks to add competition. Among the thirty Private Banks, we have 21 old and 9 new banks which are able to sustain the competition. But, one question that arises is how much reliable these private banks are inspite of their efficiency due to recent experience of Global Trust Bank failure. Better professional management techniques adopted by the ICICI Bank made it as number one, inspiteof rumourstwo yearsback (BestBank- BusinessIndia,16-29,August,2004).