Presented By –
Neetu Marwah
Roll No. 1
WHAT IS NATIONALIZATION?
Nationalization is the process of taking a private
industry or private assets into public ownersh...
NEED FOR NATIONALIZATION
Private commercial banks were not fulfilling the social
and developmental goals of banking which ...
OBJECTIVES OF NATIONALISATION
• Improve Economy’s Condition
•To fulfill Social Objectives
• Controlling Private Monopolies...
BANKS NATIONALIZED
State Bank of India (SBI)
i. State Bank of Hyderabad
(SBH)
ii. State Bank of Indore
iii. State Bank of ...
EFFECTS OF NATIONALIZATION
Increase in number of branches
More concentration of banks in
rural, unbanked and under
banked ...
AFTER NATIONALIZATION
Public sector bank branches rose to approximately
800% in deposits and advances took a huge jump by
...
LIMITATIONS OF NATIONALIZATION
Inadequate Banking Facilities
Lowered Efficiency and Profits
Increased Expenditure
Politica...
What is Denationalization?
Denationalization is the privatization of an industry,
transferring from public to private owne...
OBJECTIVES OF PRIVATE BANKS
Better standard of service
Improvement in performance
Promote healthy competition
Quick decisi...
ADVANTAGES OF PRIVATE BANKS
Improvement in performance
Better standard of living
Decrease in expenses
Increase in deposits...
DISADVANTAGES OF PRIVATE
BANKS
Misuse of loans
Unhealthy competition
Neglecting small industries
Neglecting agriculture se...
PRIVATE BANKS IN INDIA
Axis Bank
Catholic Syrian Bank
City Union Bank
Development Credit Bank
Dhanlaxmi Bank
Federal Bank
...
CONCLUSION
The pace of development for the Indian banking
industry has been tremendous over the past decade.
As the world ...
Nationalization of Indian Banks
Nationalization of Indian Banks
Nationalization of Indian Banks
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Nationalization of Indian Banks

Nationalization & Privatization of Indian Banks
Published on: Mar 3, 2016
Source: www.slideshare.net


Transcripts - Nationalization of Indian Banks

  • 1. Presented By – Neetu Marwah Roll No. 1
  • 2. WHAT IS NATIONALIZATION? Nationalization is the process of taking a private industry or private assets into public ownership by a national government or state. 14 banks were nationalized in 1969. 6 banks were nationalized in 1980.
  • 3. NEED FOR NATIONALIZATION Private commercial banks were not fulfilling the social and developmental goals of banking which are so essential for any industrialising country. Despite the enactment of the Banking Regulation Act in 1949, the expansion of commercial banking had largely excluded rural areas and small-scale borrowers.
  • 4. OBJECTIVES OF NATIONALISATION • Improve Economy’s Condition •To fulfill Social Objectives • Controlling Private Monopolies • Expansion of Banking • Reducing Regional Imbalance • Priority Sector Lending • Developing Banking Habits Mrs. Indira Gandhi
  • 5. BANKS NATIONALIZED State Bank of India (SBI) i. State Bank of Hyderabad (SBH) ii. State Bank of Indore iii. State Bank of Saurashtra (SBS) iv. State Bank of Mysore (SBM) v. State Bank of Bikaner and Jaipur (SBBJ) vi. State Bank of Patiala (SBP) vii. State Bank of Travancore (SBT) Central Bank of India Bank of Maharashtra Dena Bank Punjab National Bank Syndicate Bank Canara Bank Indian Bank Indian Overseas Bank Bank of Baroda Union Bank Allahabad Bank Union Bank of India UCO Bank Bank of India Andhra Bank Bhartiya Mahila Bank Corporation Bank IDBI Bank Oriental Bank of Commerce Punjab & Sind Bank Syndicate Bank United Bank of India Vijaya Bank
  • 6. EFFECTS OF NATIONALIZATION Increase in number of branches More concentration of banks in rural, unbanked and under banked areas Increase in deposits & lending Priority sector lending was introduced.
  • 7. AFTER NATIONALIZATION Public sector bank branches rose to approximately 800% in deposits and advances took a huge jump by 11,000%. Banks with Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. After 1991 reforms and technological up gradation of the banks, the situation is such that the country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced.
  • 8. LIMITATIONS OF NATIONALIZATION Inadequate Banking Facilities Lowered Efficiency and Profits Increased Expenditure Political and Administrative Inference Low Competition
  • 9. What is Denationalization? Denationalization is the privatization of an industry, transferring from public to private ownership. After LPG process in the year 1991, privatization was boosted in banking industry too.
  • 10. OBJECTIVES OF PRIVATE BANKS Better standard of service Improvement in performance Promote healthy competition Quick decisions Development of capital market
  • 11. ADVANTAGES OF PRIVATE BANKS Improvement in performance Better standard of living Decrease in expenses Increase in deposits Decrease in default loans Productive loans Quick decisions Economic development Reasonable profit
  • 12. DISADVANTAGES OF PRIVATE BANKS Misuse of loans Unhealthy competition Neglecting small industries Neglecting agriculture sector Lack of co-operation Concentration of wealth in few hands Advances to relatives and employees Favoritism Profit motive
  • 13. PRIVATE BANKS IN INDIA Axis Bank Catholic Syrian Bank City Union Bank Development Credit Bank Dhanlaxmi Bank Federal Bank HDFC Bank ICICI Bank IndusInd Bank ING Vysya Bank Karnataka Bank Karur Vysya Bank Kotak Mahindra Bank Lakshmi Vilas Bank Nainital Bank Tamilnadu Mercantile Bank South Indian Bank YES Bank UP Agro Corporation Bank
  • 14. CONCLUSION The pace of development for the Indian banking industry has been tremendous over the past decade. As the world reels from the global financial meltdown, India’s banking sector has been one of the very few to actually maintain resilience while continuing to provide growth opportunities, a feat unlikely to be matched by other developed markets around the world.

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