Scribd
Upload
106 views10 pages

Topic:-Arguments in Favour and Against Nationalization of Commercial Banks

The document discusses the arguments for and against the nationalization of commercial banks in India. It provides background on what nationalization means and the objectives of nationalizing banks in India, which included social welfare, controlling private monopolies, expanding banking access, reducing regional imbalances, and priority sector lending. The impacts included branch expansion into unbanked areas and the establishment of several nationalized banks. However, risks included extending loans to risky sectors like agriculture and less profitability. Overall, nationalization helped expand access but privatization was eventually adopted due to changing economic conditions.

Uploaded by

Ragula praveen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
106 views10 pages

Topic:-Arguments in Favour and Against Nationalization of Commercial Banks

The document discusses the arguments for and against the nationalization of commercial banks in India. It provides background on what nationalization means and the objectives of nationalizing banks in India, which included social welfare, controlling private monopolies, expanding banking access, reducing regional imbalances, and priority sector lending. The impacts included branch expansion into unbanked areas and the establishment of several nationalized banks. However, risks included extending loans to risky sectors like agriculture and less profitability. Overall, nationalization helped expand access but privatization was eventually adopted due to changing economic conditions.

Uploaded by

Ragula praveen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 10

Topic :- Arguments In favour and

against Nationalization of
commercial Banks

Presented by Ragula Praveen


Reg No :- 20397102
INTRODUCTION

Nationalization banking

Nationalization banking have contributed a lot for the growth of economy of India and they dominate the
Indian banking system.
Meaning of Nationalization :-

Nationalization is a process by which the government takes over private assets and brings them
under
public ownership.

Nationalization refers to an act of taking an Industry or assets into the public ownership. It is the
public sector by the act of nationalization.
Objectives of the Nationalization of Banks

The specific objectives which the nationalized banks were expected to pursue were outlined by the then
prime Minister Mrs. India Gandhi in her statement to the parliament on 21 July, 1969.

 Social welfare

 Controlling private Monopolies

 Expansion of Banking

 Reducing Regional Imbalance

 Priority Sector Lending

 Developing Banking Habits


Impacts of Nationalization :-

The one positive impact of bank nationalization was that financial savings rose as lenders opened
new branches in areas that were unbanked.

1. Central bank of India


2. Bank of Maharashtra
3. Dena bank
4. Punjab National bank
5. Syndicate bank
6. Indian bank
7. Canara bank
8. Indian overseas bank
9. Bank of Baroda
10. Union bank
11. Allahabad bank
Some New Schemes

Public sector banks have been departing from their traditional role and introducing some new schemes.

A number of other steps have been taken up to improve customer service.

Courier services have been introduced to expedite collection of outstation credit instruments.
Failures of Nationalization of Banks

1. Extending loans to agriculture and small scale industries was risky and less profitable

2. No additional securities were provided to depositors through nationalization of banks

Achievements :-
Some of the achievements of nationalization of bank are as follows :

Branch Expansion

Deposit Growth

Credit Expansion

Priority Sector Lending


CONCLUSION

From the above discussion we can say that nationalization of banks helped expansion of branches in small
towns and village areas.

It was necessary for the time being to nationalize the banks which were performing ineffectively.

It had achieved many objectives such as credit expansion, priority sector lending, which were beneficial for
agriculture and small scale industries but due to global requirement of economic conditions which eventually
led the Govt to adopt the policy of LPG model of economy, nationalization had to be eased privatization of
banks was demand of the situation.
THANK YOU

You might also like