PROBLEMS FACED BY

NATIONALIZED BANKS

BY SUPREETH
INTRODUCTION
What Is a Bank?
A Bank is a financial institution which is licensed to receive the deposits
and lend loans to the needy.
The banks also perform other functions in the form of currency exchange,
wealth management, financial service, safe deposit boxes etc.
What is Nationalized Banks?
Nationalization refers to the transfer of public sector assets to be operated
or owned by the state or central government.
In India, the banks which were previously functioning under private sector
were transferred to the public sector by the act of nationalization and thus
the nationalized banks came into existence.
LIST OF NATIONALIZED BANKS
Allahabad Bank Indian Overseas Bank
Andhra Bank Oriental Bank of Commerce
Bank of Baroda Punjab & Sind Bank
Bank of India Punjab National Bank
Bank of Maharashtra Syndicate Bank
Canara Bank UCO Bank
Central Bank of India Union Bank of India
Corporation Bank United Bank of India
Dena Bank Vijaya Bank
Indian Bank
 MAJOR PROBLEMS
1. Losses in Rural Branches: Most of the rural branches are running at a
loss because of high overheads.
2. Large Over-Dues: The small branches of commercial banks are now
faced with a new problem a large amount of overdue advances to farmers.
3. Non-Performing Assets: Due to a high proportion of non-performing
assets or outstanding due to banks from borrowers they are incurring huge
losses.
4. Advance to Priority Sector: Poor and unsatisfactory loan recovery rates
from the agricultural and small sectors.
5. Competition from Non-Banking Financial Institution: Commercial
banks have been facing stiff challenges from non-banking financial
intermediaries such as mutual funds, housing finance corporations, leasing
and investment companies.

6. Competition with Foreign Banks: Foreign banks and the smaller private
sector banks have registered higher increase in deposits.

7. Bureaucratisation: The smooth functioning of banks has been hampered

by red-tapism, long delays, lack of initiative and failure to take quick
decisions.
THANK YOU