IMPACT OF PRIVATIZATION ON BANKS’ EFFICIENCY AND PROFITABILITY: A COMPARATIVE STUDY OF LONG-TERM EFFECTS, INSTITUTIONAL ROLE, AND SUSTAINABILITY

The objective of the present research is to analyze the effect of privatization on banks' profitability and efficiency. It particularly makes a comparison of privatized bank performance with the public sector bank. Also, it assesses how the institutional structures and regulatory policies contribute to the sustainability of privatized banks in the long run. It is vital that policymakers, investors, and financial institutions understand the consequences of privatization on banking performance to support growth in the financial industry. The goal is to determine whether privatization creates enhanced operational efficiency, profitability, and competitiveness, and how these elements contribute to the stability of the banking industry in developed and developing economies. Design/Methodology/Approach: The study uses the mixed-method methodology, where there is a synthesis of quantitative data analysis of finances (such as profitability ratios, efficiency, and sustainability measures) with qualitative analysis from industry representatives, bank executives, and government regulators. Some privatized banks and public banks' financial ratios over a set time period are examined to get an insight into performance changes. Moreover, interviews and questionnaires with stakeholders from the banking industry are carried out to better understand the involvement of institutional settings and policies. This two-pronged method provides a holistic understanding of the privatization effect, combining empirical information with specialists' opinion.