Corporation Bank deserves the tag of a star performer among the nationalized banks, thanks to its superior accomplishments during the recent past. In fact, its level of NPAs, profitability, business per employee, profit per employee, capital base and capital adequacy ratio are much better than those for most of the private sector banks. Nationalized in the second round during 1980, its strategic alliance with LIC and New India Assurance Co. Ltd. have been hailed as fairly successful. It has an efficient collection-payment service and specializes in extending credit to blue chip corporates. Of late, it has been concentrating on retail credit segment in a big way.

Nationalized banks have their own philosophy of performance. It was on the basis of deposit growth until late 1980s, when the accent was certainly not on profitability but on social banking. Thanks to the onset of new economic reforms and particularly new banking reforms during early 1990s, there has been a sea change in the attitude of bankers, regulator, the government and the analysts on the performance parameters. It is heartening to note that they now talk in terms of profitability, solvency, staff productivity, degree of automation etc., and no longer on social banking.

There is now a tremendous sense of competition amongst banks. Nationalized banks compete amongst themselves and also with private banks for survival. They are trying to learn the critical importance of marketing as well. Some of the nationalized banks have shown remarkable performance consistently during the last few years. Their achievements are even better than some of the so called new generation tech-savvy private banks.

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