Nationalization of Banking sector

1. BHARATIYA MAHAVIDYALAYA,
AMRAVATI.
(ART’S, COMMERCE & SCIENCE)
Presented By:-
SHUBHAM RAUT.
Subject :- Banking And
Insurance.
(Nationalization of bank)

2. NATIONALISATION OF
BANK

3. NATIONALISATION OF BANK
After independence the Government of India (GOI)
adopted planned economic development for the country(India).
Accordingly, five year plans came into existence since 1951.
This economic planning basically aimed at social ownership of
the means of production. However commercial banked were in
private sector those days.
In 1950-1951 there were 430 commercial banks in
India. The government of India had social objective of planning.
These commercial banks failed helping the government in
attending these objective. Thus the government decided to
nationalize 14 major commercial banks on 19th July, 1969.

4. The nationalisation of bank in India took place
in 1969 by Mrs. Indira Gandhi the then prime
minister. It nationalized 14 banks then. These
banks were mostly owned by businessman
and even managed by them.
Before the steps of nationalisation of
Indian banks, only State Bank of India (SBI)
was nationalized. It took place in July 1995
under the SBI Act of 1955. Nationalisation of
seven State Banks of India ( formed
subsidiary) took Place on 19th July,1960.

5. LIST OF 14 NATIONALIZED BANKS IN INDIA
1. Central Bank Of India
2. Bank of Maharashtra
3. Dena Bank
4. Punjab National Bank
5. Canara Bank
6. Indian Bank
7. Indian Overseas Bank
8. Bank Of Baroda
9. Union Bank
10. Allahabad Bank
11. United Bank of India
12. UCO Bank
13. Bank of India
14. Syndicate Bank
(this banks offer job openings time to time)

6. In 1980 the Government of India again nationalized
six (6) commercial banks, razing the number of
nationalized commercial bank in the public sector to
20. Commercial banks nationalized on 1980 were..
1. Andhra Bank
2. Corporation Bank
3. New Bank Of India
4. Oriental Bank Of Commerce
5. Vijaya Bank
6. Sindh Bank

7. OBJECT BEHIND NATIONALISATION OF BANK OF INDIA
The nationalization of commerce bank took place in an aim to
achieve following major objective.
 Social Welfare :- It was the need of the hour direct the funds
for the needy and required sectors of the Indian economy.
Sector such as agriculture, small and village industries were in
need of funds for their expansion and further economic
development.
 Controlling Private Monopolies :- Prior to nationalization many
banks were controlled by private business houses and
corporate families. It was necessary to check these monopolies
in order to ensure a smooth supply to credit to socially desirable
sections.
 Expansion of Banking :- In a large country like India the
numbers of banks existing those days were certainly inadequate.

8.  Reducing Regional Imbalance :- In a country like India where
we have urban-rural divide; it was necessary for banks to go
in the rural areas where the banking facilities were not
available. In order to reduce this regional imbalance
nationalisation was justified.
 Priority Sector Lending :- In India, the agriculture sector and
its allied activities were the largest contributor to the national
income. Thus these were labeled as the priority sectors. But
unfortunately they were deprived of their due share in the
credit. Nationalisation was urgent needed for catering funds
to them.
 Developing Banking Habits :- In India more than 70%
population used to stay in rural areas. It was necessary to
develop the banking habit among such a large population.

9. THANK YOU