Target IBPS PO 2023

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Question. What is Nationalised Bank and how it is different

from PSBs ?
राष्ट्रीयकृत बैंक क्या है और यह पीएसबी से कैसे भिन्न है?

Question. What is your view on the Privatization of PSBs ?

Question. What are the advantage and Disadvantages of

merger of PSBs ?

Question. Why PNB is your 1st Preference ?

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Question: What is the recent new about

disinvestment in PSBs ?
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Public Sector Banks:

❑ Those banks where the Government holds the majority
stake (more than 50% of the shares) are known as public
sector banks.
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Question: Commercial Banks in India are Nationalised

under which act ?
िारत में वाणिज्ययक बैंकों का राष्ट्रीयकरि ककस अधिननयम के तहत
ककया जाता है ?

Ans: Banking Companies acquisition and transfer of

undertaking act
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Nationalised Banks: (Public Sector Banks)

▪ The term “Nationalised banks” refers to those banks which were

“Nationalised” under the Banking Companies (Acquisition and Transfer of
Undertaking) Bill-1969.

▪ Nationalization of banks in India took place on two phases.

▪ First phase of Nationalization of banks took place on 19th July, 1969.

▪ Government decided to nationalize 14 major commercial banks with a

deposit base over Rs.50 crores
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Name of Banks Nationalised in 1969

1. ALLAHABAD BANK
2. BANK OF INDIA
3. CANARA BANK
4. DENA BANK
5. INDIAN OVERSEAS BANK
6. SYNDICATE BANK
7. UNION BANK OF INDIA
8. BANK OF BARODA
9. BANK OF MAHARASHTRA
10. CENTRAL BANK OF INDIA
11. INDIAN BANK
12. PUNJAB NATIONAL BANK
13. UCO BANK
14. UNITED BANK OF INDIA
➢ Second phase of Nationalization of banks

• On 15th April, 1980. Government decided to nationalize 6 major

commercial banks with a deposit base over Rs.200 cr

Name of Banks Nationalised in 1980

1. ANDHRA BANK
2. PUNJAB & SINDH BANK
3. NEW BANK OF INDIA
4. VIJAYA BANK
5. CORPORATION BANK
6. ORIENTAL BANK OF COMMERCE

• The New Bank of India which was running at a loss was merged
with the Punjab National Bank in September 1993
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Question. What is your view on the Privatization of PSBs ?

Question. What are the advantage and Disadvantages of

merger of PSBs

Question. Why PNB is your 1st Preference ?

Advantages of Merger

• Reduced the cost of operation

• Merger will help in improving the professional standards
• Improve Management Quality
• Helps in financial inclusion and broadening the geographical reach of the
banking operation
• Leads to increase in profitability and helps in raising the standard of
living which is absolutely crucial for a growing economy like India
• Increase the lending Capacity of Bank
The disadvantages of merger:

• Banks are merged only on papers. Their people and culture are
difficult to change (its takes time)

• Impact of customers on banking merger or acquisition is often quite

emotional. If customer perception is not managed with frequent and
careful communication, it may lead to loss of business which is never
good for the Economy.

• Many banks focus on regional banking requirements. With the

merger the very purpose of establishing the bank to cater to regional
needs is lost.
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Question. What are the advantage and Disadvantages of

merger of PSBs

Question. Why PNB is your 1st Preference ?

Impact of Privatization of PSB
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Banking and financial News

➢ PSU Banks’ Profit Crosses Rs 1 Lakh Crore Mark in FY23

➢ PSU बैंकों का लाि FY23 में 1 लाख करोड़ रुपये के पार

▪ Public sector banks (PSBs) in India have achieved a significant milestone in the financial
year ended March 2023, with their cumulative net profit which hit Rs 1.05 lakh crore.
(₹1,04,649 crore)
▪ The combined net profit of PSU banks stood at Rs 66,539 crore in FY22.
▪ In percentage terms Pune-based Bank of Maharashtra (BoM) had the highest net profit
growth with 126 per cent to Rs 2,602 crore, followed by UCO with 100 per cent rise to Rs
1,862 crore and Bank of Baroda with 94 per cent increase to Rs 14,110 crore.
▪ However, in absolute term, SBI has reported highest annual profit of Rs 50,232 crore in
2022-23, showing an increase of 59 per cent over the preceding financial year.
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Banking and financial News

➢ PSU Banks’ Profit Crosses Rs 1 Lakh Crore Mark in FY23

➢ PSU बैंकों का लाि FY23 में 1 लाख करोड़ रुपये के पार

▪ PNB posted a 27% decline in annual net profit from ₹3,457 crore in 2021-22 to ₹2,507 crore
in the year ended March 2023
▪ In the latest March quarter or the fourth quarter of 2022-23, the PSBs' profit cumulatively
increased more than 95% to ₹34,483 crore. In the year-ago period, the same was at
₹17,666 crore.
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