Banking an era of Nationalisation and Liberalisation

 

Nationalization in 1969 : 

Despite the provisions, control and regulations of the Bank of India, banks in India except the financial organization of India (SBI), remain owned and operated by the  Private persons. By the 1960s, the Indian Industry had become an  important tool to facilitate the event of the Indian economy. At the identical time, it had emerged as an out sized employer, and a discussion had controlled about the Nationalization of the industry. The subsequent banks were Nationalized in 1969:

·         Allahabad Bank (now Indian Bank)

·         Bank of Baroda

·         Bank of India

·         Bank of Maharashtra

·         Establishment of India

·         Canara Bank

·         Dena Bank (now Bank of Baroda)

·         Indian Bank

·         Indian Overseas Bank

·         Punjab Full Service Bank

·         Syndicate Bank (now Canara Bank)

·         UCO Bank

·         Union Bank of India

·         United Bank of India( now Punjab National Bank)

Nationalization in 1980 : A Second wave  of  Nationalization was seen with Six more commercial banks to be  followed in 1980s. The mentioned  reason for the Nationalization was to grant the Govt. more control of the Credit delivery. With the Second wave of  Nationalization, the Govt. of India had controlled around  91% of the banking business of India.

The following banks were nationalized in 1980:

·         Punjab and Sind Bank

·         Vijaya Bank (Now Bank of Baroda)

·         Oriental Bank of India (now Punjab National Bank)

·         Corporation Bank (now Union Bank of India)

·         Andhra Bank (now Union Bank of India)

·         New Bank of India (now Punjab National Bank)

Later on in 1993, the Govt. had merged New Bank of India with Punjab Full Service Bank. It had been the sole merger between the Nationalized banks and resulted within the reduction of the amount of the Nationalized banks from 20 to 19. Until the 1990s, the Nationalized banks grew at a pace of around 4%, closer to the common rate of growth of the Indian economy.

Liberalization within the 1990s :

In the early 1990s, the  Government  took on a policy of  Liberalization which suggests licensing slightly number of personal banks. These came to be said to as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later consolidated with Oriental Bank of Commerce, IndusInd bank, UTI bank (since renamed Axis bank), ICICI bank and HDFC bank. This move along with the ascent within the Economy of India, gave a  new life to the banking sector in India, which has seen Zoom with the strong contribution from all the three sectors of banks  i.e,  Government banks, Private banks and Foreign banks.

The new policy stimulate the Banking sector in India completely. Bankers, till now were familiar with the 4–6–4 method (borrow at 4%; lend at 6%; come back to 4) of functioning. The new wave started during a up to date outlook and  tech-savvy methods of working for traditional banks. All this led to  boom within the retail sector in India.