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Academic MBA Question:

NMIMS Case Study: While
current accounts and savings accounts have different objectives, the banks
stand to benefit from the low cost of servicing these deposits. In the current
scenarios it has been observed that private banks such as HDFC bank, Kotak bank
etc. are able to raise higher saving account / current account deposits
compared to their PSU counterparts. Also the other income is now becoming more
significant as a % share of total income of private sector banks compared to

In relation
to above scenarios, analyze the following (With examples):

a. Why PSU
banks are not able to raise money from low cost saving and current account
deposits ratios? What impact would it have on their profitability? (5 Marks)

b. What are
the reasons behind increase in share of other income in total income for
private sector banks as compared to PSU banks. (5 Marks)


Academic Assignment Answer:

Single Question and Answer