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2014-05-05 05:12:05
2014-05-05 05:12:05

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IT is surprising that this question is being asked. Dena Bank was one of the fourteen banks nationalised in 1969. At that time, it was one of the bigger banks having 5th position all India.



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I don't think so. Karur Vysya Bank is one of the largest private sector banks in India. It is extremely well managed and a very profitable entity. There are only two reasons why the government would nationalize private banks - one is if the bank is totally mismanaged and the government feels it has to intervene to protect the customers. The second is if the government feels all banks must be nationalized. Neither is the case now. So, in the near future - No. after 15 or 20 years - only time can tell.


please mention the various nationalized banks By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the Indian economy. At the same time, it has emerged as a large employer, and a debate has ensued about the possibility to nationalise the banking industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation." The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August, 1969. A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the GOI controlled around 91% of the banking business of India. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalised banks from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.



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