India is still a developing nation. Huge population, huge resources. Yet poverty and scarcity in many parts.
When 14 major banks were nationalised in 1969, the motive behind was to get the banks accessible to common public. National priorities and Govt. subsidies came into play in between the deposits, loans and other commercial transactions.
It was the time of huge loan melas. Even now most bank officials dread the name Pujari.
The second phase of nationalisation took place in the year 1980 with seven more banks added to the control of the Govt. And then came the fresh recruitment of employees in all cadres. Bank jobs became a much sought after ones in view of the Govt. stake in Banks.
The inflow of young people into the nationalised banks was really helpful for many growing banks. The attitude of the fresh minds was different; the approach was more intelligent and the departmental exams were taken up seriously. People really started showing interest in knowing at least basics laws. Of course practices too. (Banking is the only area where the law is called as ‘Banking Law and Practice’!)
The objectives of nationalisation paved way for more branches in the rural areas too. The expansion was good for the public, for the banks and for the employees as it offered more employment opportunities.(But this became again an issue for the unions later – the compulsory postings to rural areas. I will talk about it later)
With this growth in numbers, a few foreign banks were also competing. The established Grindlays Banks, Citi Bank and Standard Chartered Bank were doing well as the liberalisation helped many corporate companies. The entry of new banks started in the early 90s.
I clearly remember, when ABN Amro Bank started its operations in India in 1991, the name of the bank was unusual. The nationalised bank employees were amused at the entry. But after the entry of many more banks in India, the latest Rabo Bank, a France based bank which started its commercial operations in India in June 2002 went without much noise.
Today’s Hindu – Business Line talks about the injection of fresh capital of $25 million to Rabo Bank India by its parent bank.
While inflow of more business to small countries like India is welcome, it leaves the common man wonder, if at all we need so many banks and branches. A poor country with most banks!
The contradictory situation could be felt while working at a ‘poor’ state in India. In fact, that state has the most resources as well as money. Read on my next post. It will be posted soon!
IMP. NOTE : This blog was started on Sep.17, 2005. The above post is typed and inserted into this blog from my diary entry of the same date as the date of posting.
Posted by Revathi 