Effect of Privatization on Banking Sector Performance in Pakistan

Abstract

The purpose of research is to discover the effects of Privatization on banking sector performance in Pakistan.The tactic applied for conducting current research is quantitative research. I have adopted ratio analysis method, common size and vertical analysis to find effects of privatization on banking sector performance in Pakistan. From the research the result concluded that HBL is in a progressing condition after privatization than other banks, or we can say that privatization has a good effect on HBL because before Privatization banking sector facing such a problems like politics involvement in banking decisions, over staffing etc. Other banks should follow HBL policies and strategies to move their financial institution towards progress and success.The management should try to decrease job insecurity among the employees.There should be transport facility for the employees.The bank charges high service charges as compared to the other banks, so these should be lowered down.Surveys must be conducted regarding customer satisfaction level at all levels.Quick response to customer queries is necessary to maintain a healthy relationship with the customer.Other Banks shouldfollow the policies of HBL.

Keywords: Banking, privatization, performance, financial analysis, management.