IMMINENT CONSEQUENCES OF THE PRIVATIZATION OF STATE-OWNED BANKS: A CASE STUDY OF IDBI BANK
Creators: name: Tripathi, Ashwani
Publisher: name: figshare
Year: 2025
Subjects: classificationCode: 350714
subject: Public sector organisation and management

description: <b>Title</b>:<br><b>Imminent Consequences of the Privatization of State-Owned Banks: A Case Study of IDBI Bank</b><b>Description</b>:<br>This research paper investigates the effects of privatization on state-owned banks in India, with a specific focus on IDBI Bank. The study explores how privatization impacts key areas such as employee satisfaction, productivity, organizational culture, and overall banking efficiency. It also examines the broader implications for financial performance and management practices within the banking sector.<b>Background</b>:<br>The Industrial Development Bank of India (IDBI) underwent a significant transformation following its privatization in January 2019, when the Life Insurance Corporation of India (LIC) acquired a majority stake. This transition from public to private ownership raised critical questions about its impact on employees and operational efficiency. The study delves into these changes, shedding light on the challenges and opportunities faced by employees adapting to a performance-driven corporate environment.<b>Objectives</b>:<br>The primary objectives of this study are to:Analyze the differences between public and private banking structures.Examine how privatization affects employee satisfaction, job security, productivity, and work culture.Assess the relationship between employee satisfaction and financial performance.Provide actionable recommendations to improve employee adaptability during privatization transitions.<b>Methodology</b>:<br>A quantitative research approach was employed, utilizing surveys distributed to IDBI Bank employees. Statistical tools such as correlation and regression analysis were used to evaluate the relationships between independent variables (e.g., employee satisfaction, bank efficiency) and dependent variables (e.g., financial performance).<b>Key Findings</b>:Privatization enhances profitability and operational efficiency but creates significant pressure on employees to adapt to competitive work environments.Employee satisfaction has a positive and significant impact on financial performance.Effective change management strategies are essential to support employees during transitions.<b>Recommendations</b>:<br>The study suggests implementing performance-based rewards, improving recruitment processes, fostering a supportive work culture, and enhancing managerial practices to help employees adapt to privatization.This research contributes valuable insights into the ongoing discourse on privatization in the banking sector, offering practical guidance for policymakers, bank management teams, and stakeholders involved in similar transitions.<b>Additional Metadata</b><b>Keywords</b>: privatization, IDBI Bank, employee satisfaction, banking efficiency, financial performance.<b>Ethical Compliance</b>: All procedures involving human participants complied with ethical standards.<b>Conflict of Interest Declaration</b>: The author declares no conflicts of interest related to this study.