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Yes, state owned banks play important role in promoting financial stability and prosperity of economy only when it is a mixed mixture of Public as well as Private Banks. No doubt Public Banks are inefficient and politically influenced but private banks are concerned with their profit margins and only concentrate on profit making businesses to lend. There will always be a fear of high inflationary pressure on economy as private banks prefer more financing to high consumption, better margin goods manufacturers. In my view there should be a mixture of Public as well as Private Banks for any economy to prosper. Especially in India now, as we entered in a competitive arena Public Banks are also in competition with Private Banks in case of efficiency and better services. Rest all has been explained by our professors and you.