CEOs and Quiet Life Hypothesis – A Comparative Study on SBI and other Public Sector Banks in India

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Authors

  • Pushkala Narasimhan
     Coordinator, P. G., Department of Commerce, NMKRV College for Women, Bangalore – 560041, Karnataka ,IN
  • K. A. Venkatesh
     Professor, Myanmar Institute of Information Technology, Mandalay ,MM
  • J. Mahamayi
     V.V.V. College for Women, Virudhunagar – 626001, Tamil Nadu ,IN

DOI:

https://doi.org/10.18311/sdmimd/2020/26236

Keywords:

Efficiency of Banks, Market Concentration and Lerner's Index

Abstract

Quiet Life Hypothesis is a concept which ensures the players in an industry achieving and attaining the highest market share. But Quiet life is also possible with the very strong strategic and efficient leadership at CEO level of any organisation. Their tenure makes the organisation to emerge as industry's behemoth like SBI. The QLH is tested in the Banking sector especially State Bank of India. Nevertheless, to say Ms. Arundhati Bhattacharya took over as CEO of SBI in Oct, 2013 and with her extended tenure till Oct 2017, she made SBI as the most efficient bank among all public sector banks in handling demonetisation, GST and implementing the road map of merger of all associate banks of SBI and Bharatiya Mahila Bank. The legacy of Ms. Arundhati left SBI in an extremely strategically stronger position than before she became CEO. This paper reveals that the exit of hers made SBI reap the benefits of Quiet Life in comparisons with other public and private sector banks in India.

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Published

2021-01-27

How to Cite

Narasimhan, P., Venkatesh, K. A., & Mahamayi, J. (2021). CEOs and Quiet Life Hypothesis – A Comparative Study on SBI and other Public Sector Banks in India. SDMIMD Journal of Management, 11(2), 1–8. https://doi.org/10.18311/sdmimd/2020/26236

Issue

Volume 11, Issue 2, September 2020

Section

Research Papers
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