19th July Call of the Day is “Defend Bank Nationalisation: – Defeat Bank Privatisation” https://www.cenfa.org/national-financial-institutions/19thjuly/
By Devidas Tuljapurakar | July 15, 2020
In 1969 total bank branches were 8,262 of which in rural 1833 and semi urban 3342, which today are total 1,46,904 while rural 52,098 and semi urban 41,738. In 1969 per branch population was 64000 today is 9269. In 1969 deposits of all scheduled commercial banks were 4646 Cr, while advances 3509 Cr which today are deposits 139 lakh Cr rupees while advances 102 lakh Cr of which in 1969 priority sector advances where 504 Cr which today are 25 lakh Cr. The growth of banking in India consequent upon nationalisation is unparallel and unmatched. This enabled common man to put their savings in the banking which became source of economic development for the government.
The role of the government is to give direction to the banking but consequent upon nationalisation governments started using banking to sub serve their own political interests. Loan Mela were organised thereby to distribute hundreds of crore to nurture their own constituencies to serve narrow political interests. This was followed by repetitive debt relief announcements which vitiated the environment of recovery in the banking. At the same time big business by using their political clout got the sanctions of big amount which also became overdue and were written off in due course of time. Thus today banking is in deep crisis on account of mounting Non Performing Assets (NPAs).