Nationalised Bank India
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Nationalised Bank India: Concept
The nationalised banks of India dominate the banking sector of the nation. There are 27 nationalised banks with pan-India infrastructure. These banks excel in providing mass banking services as well as priority banking. With the onset of the 21st century, public sector banks are making considerable efforts to develop modern banking infrastructure for convenient banking (net and mobile banking) services.[br]
Nationalised Bank India: Concept
The concept of nationalised banks in India originated from the socialist ideology that is imbibed in the soul of the Union Constitution. Prior to nationalization, most private banks were profit-oriented businesses. Thus, state-funded banks were an inevitable option to meet the needs of a newly industrializing economy.
Here are some reasons to support the bank nationalisation policy in India:
- Commercial banks were not supporting development goals.
- During 1951-68, agriculture received only 2% of the total credit disbursement.
- Lending procedures in commercial banks were discouraging small sector industries and exports promotion.
- Expansion of the banking sector was limited to strategic business centers like New Delhi, Mumbai and Bangalore.
Nationalised Bank India: List
To overcome the above mentioned loopholes, the Government of India registered 14 banks at the first stage of nationalization in 1969. The banks that made it to this list were:
- Allahabad Bank
- Bank of Baroda
- Bank of India
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- Dena Bank
- Indian Bank
- Indian Overseas Bank
- Punjab National Bank
- Syndicate Bank
- Union Bank
- United Bank of India
- UCO Bank
This was followed by a second round of nationalization in 1980. At this stage, seven commercial banks with deposits of over Rs200 crore were nationalized. The list included:[br]
- Andhra Bank
- Corporation Bank
- New Bank of India
- Oriental Bank of Commerce
- Punjab & Sind Bank
- Vijaya Bank
- UTI Bank
However, the State Bank of India was nationalized even before the first phase, i.e. in 1955. The State Bank’s seven associates were nationalized in 1959.
Although several private players have emerged, public sector banks are considered an emblem of trust. This fact remains valid in terms of both banking as well as the share market.
