SNEHA NAYAK(MBA- D2F-01)
Submitted to-Prof.Abhinav Jog
 The process of transferring ownership and
operational rights of a bank from private or
trusts to the government of the c...
 To reduce concentration of economic powers
with only a few industrial magnets and to
prevent monopolies.
 Mobilize reso...
 To provide aid to the poor, small artisans and
small scale industries. Small scale industries
contributed 40% of industr...
 Removal of barriers- There were no longer any
barriers, social, economic or political between
the bankers and customers....
 Expansion of branch network- During the last
28 years of nationalization, the branches of the
public sector banks rose 8...
 Increased expenditure : Due to huge expansion
in a branch network, large staff administrative
expenditure, trade union s...
 Inadequate banking facilities : Even though
banks have spread across the country; still many
parts of the country are un...
Nationalised banks
of 9

Nationalised banks

About the merits and demerits of Nationalised Banks
Published on: Mar 3, 2016
Published in: Economy & Finance      
Source: www.slideshare.net


Transcripts - Nationalised banks

  • 1. SNEHA NAYAK(MBA- D2F-01) Submitted to-Prof.Abhinav Jog
  • 2.  The process of transferring ownership and operational rights of a bank from private or trusts to the government of the country.  In India,14 leading banks were nationalized on July 18, 1969.  Each one’s deposits were more than Rs 50 cr.  Their share in total deposits and advances were almost two third of all scheduled banks in nation
  • 3.  To reduce concentration of economic powers with only a few industrial magnets and to prevent monopolies.  Mobilize resources even from backward and rural areas  To prevent corruption and misuse of firms:  The trustees were only benefiting from huge resources and it was at the cost of general development in the country.
  • 4.  To provide aid to the poor, small artisans and small scale industries. Small scale industries contributed 40% of industrial output but received only 4% of bank funds.  To fulfil credit needs of farmers: hardly 2.2% of funds were available for agriculture.
  • 5.  Removal of barriers- There were no longer any barriers, social, economic or political between the bankers and customers. This enabled in a massive quantitative expansion in customer base and also helped improve the services  Enabled the bank to widen its growth- There was no more concern for profitability and there was expansion in the rural areas. With this the economy also expanded and employment opportunities were created.
  • 6.  Expansion of branch network- During the last 28 years of nationalization, the branches of the public sector banks rose 800 per cent from 7,219 to 57,000, with deposits and advances taking a huge jump by 11,000 per cent and 9,000 per cent.  Reorientation of bank lending- accelerated the process of development, especially of the priority sectors of the economy, which had not previously received sufficient attention from the commercial banks.
  • 7.  Increased expenditure : Due to huge expansion in a branch network, large staff administrative expenditure, trade union struggle, etc. banks expenditure increased to a dangerous levels.  Limited resources mobilized and allocated : The resources mobilized after the nationalization is not sufficient if we consider the needs of the Indian economy. Some times the deposits mobilized are enough but the resource allocation is not as per the expansions
  • 8.  Inadequate banking facilities : Even though banks have spread across the country; still many parts of the country are unbanked. Especially in the backward states such as the Uttar Pradesh, Madhya Pradesh, Chhattisgarh and north-eastern states of India.  Lowered efficiency and profits : After nationalization banks went in the government sector. Many times political forces pressurized them. Banking was not done on a professional and ethical grounds. It resulted into lower efficiency and poor profitability of banks

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