PRIVATIZATION OF BANKING IN

INDIA

SHAKSHYA JEMNY
BBA BATCH 2020-23

LAL BAHADUR SHASTRI INSTITUTE OF

MANAGEMENT AND TECHNOLOGY ,BAREILLY
PRIVATIZATION IS MORE EFFICIENT AND EFFECTIVE
IN SOME CASES ,BUT NOT IN INTELLIGENCE
AGENDA/ OBJECTIVES

• INTRODUCTION OF BANKING SECTOR

• IMPORTANCE OF PRIVATE BANKS
• BANKING PRIVATIZATION / BANK MERGE
• EFFECTS AND REFORMS
• CONCLUSION
INTRODUCTION

• IT INVOLVES GREATER MARKET FORCE

• HIGHER COMPETITION
• PRIVATE INVOLVEMENT INTO GOVERNMENT ACTIVITIES
• IT IS POLITICAL PROCESS AND HAS ECONOMIC AND SOCIAL
IMPLICATIONS
IMPORTANCE OF PRIVATE SECTOR BANKS

• OFFERS HIGH DEGREE OF PROFESSIONAL MANAGEMENT

• CREATES HEALTHY COMPETITION
• ENCOURAGES FOREIGN INVESTMENTS
• ACCESS FORIGN CAPITAL MARKET
INEFFICIENCY OF PUBLIC SECTORS

• OUT DATED TECHNOLOGY

• CORRUPTION
• LACK OF ACCOUNTABILITY
• POLITICAL INTERFERENCE
MEANING OF BANKING PRIVATIZATION

• CONVERTING PUBLIC SECTOR TO PRIVATE SECTOR

• MERGING BANKS WITH EACH OTHER
BANKS MERGE
RBI GUIDELINES FOR PRIVATE SECTOR BANK

• PAID UP CAPITAL
• PROMOTERS CONTRIBUTION
• FOREIGN INVESTMENT
• CAPITAL ADEQUACY REQUIREMENTS
EFFECTS AND REFORMS

• PRIORITY SECTOR
• NO MORE SUBSIDIZED INTEREST
• IMPACT ON AGRICULTURE
• REGIONAL IMBALANCES
• UNEMPLOYMENT
• MONEY LAUNDERING
CONCLUSION/ REMARKS

• IMPROVES BANK EFFICIENCY

• CREATE EMPLOYMENT TO PRIVATE WORKERS
• THEY WORK WITH THEIR OWN GOALS