Indira’s ruinous economic decision that Modi hasn’t dared reverse, & an unresolved bank-spy scandal
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- Опубликовано: 28 сен 2024
- #CutTheClutter #BankNationalisation
Indira Gandhi's bank nationalisation exactly 51 years ago has been her most lasting damage to our economy. Why and how even Narendra Modi is shy of reversing it, never mind what Atal Bihari Vajpayee said. Shekhar Gupta with details in episode 526 of ThePrint's #CutTheClutter, with a bonus story about our first big banking scandal, loaded with espionage & politics.
Watch Cut The Clutter episode 217 here : • Was bank nationalisati...
Read the India Today report on Nagarwala scandal here : www.indiatoday...
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SG is the professor we deserved but never got. 🤣
Completely agree!
Change name to THE PRINT ACADEMY
"Hua ki nahi hua" - So subtle in choosing his words 😜. As always 👏
Is he on the way to RS from ruling party?
When my friend took a loan from HDFC bank, they readily gave him and their services were also good but,they sold him 2 insurance products also....HDFC's hidden charges are also high..they even charge when you close your loan account...same is the story with icici..harr loan k sath 2-3 insurance policies chipka dete hai Pvt banks...profit to Hoga hi..
Bad idea to hand over money control to private(American) hands.
Japan, Korea, Taiwan and China industrialized when govt controlled the money supply.
@@subhadityasen5486 better regulation is the answer not totally govt controlled system
We have also taken HDFC loan but we haven't take any other insurance as of now.
One thing is for sure, you are a fool or desperate to lay your hands on the money.
In first case normally having a insurance (right type) covering your loan. Is a good idea for you and loaner too.
In second case you are desperate to lay your hands on that cash that you took 3 insurance without looking into it. I doubt these will cover your loan or not in the eventuality.
@@nandi7772 its not totally govt controlled as seemed,
State Bank of India (GOI share 55%)
Bank of Baroda (GOI share 64%)
Canara Bank (GOI share 69.33%)
Punjab National Bank (GOI share 73.1%)
Indian Bank (GOI share 78.86%)
Union Bank of India (83.5%)
Bank of India (GOI share 81.41%)
Central Bank of India (GOI share 93.08%)
Bank of Maharashtra (GOI share 93.33%)
UCO Bank (GOI share 95.39%)
Indian Overseas Bank (GOI share 96.4%)
Punjab and Sind Bank (GOI share 98.07%)
the majority has been with the GOI but not the total absolute control. What can be a very easy thing to do is issue non-voting shares along with some equity without giving up total control. And let a capable board run the bank without intervening. Total privatization of banks would lead to 2008 like the crisis in India. Personally, I think Mr gupta has some fetish in seeing privatized banks. He has made several videos on this topic.
What a brilliant story of Mr.Nagarwala. Thank You Sekhar Sir, stories like these would have otherwise remained buried
Yeah, he's a good storyteller. And he is full of stories.
Gupta ji always has a story to everything. Tell a tale every Sunday. That should be a norm. What say?
Agree with you..! This is such a fascinating tale
In india nobody is left or right
Everyone is chamcha of some political party.
True.. But people like SG has played a siginificant role in flourishing corruption. These lutyen Delhi people now jobless had too much power before 2014 May
Can SG say .. Let us liquidate those 2000 bunglows of lutyen delhi and monitize. No No.. He is suggesting reduce aid to villages and enjoy his Delhi life uninterrupted.
Sick of these inttectuals .. They are liability. Fortunately Modi is not listening to these do called experts.
bhakt ko insult na kro
@@av3704 magar chamcho ko maja nahi ayenga
There is no true economic right in india. Bjp and Congress are both same in economic policy.
4:01 Please fix the white balance of the video. It fluctuates a lot in places.
jesus dude ... its a one man covid shot.
It is not possible for Mr. Modi or any other leader to take decisions like Privatization of Banks, railways, opening up of economy and other "Libertarian" ideas because Indians, the majority of citizenry are statists themselves. They believe that government itself is the solver of all problems. Indians, as far as I have observed common Indians are very pro-establishment as they see the government as their "Mai-baap". You do not need socialist dictators to suppress them, they themselves want to be guided by the state, taken care by the state, fed by the state, provided everything by the state. No wonder the one who brings the most bad ideas is the most popular among the masses.
Yes dude , they keep on ranting privitisation = desh bech dena , we need people who can carry out such reforms without caring about the backlash they would face :(
Do away with democracy while you are at it. The unwashed masses don't know what is good for them. They need strong leaders to guide them in the right direction, right?
You said it.. bull's eye
@@aadi2456 I do not think Modi himself believes in reforms . He is the old school "government knows best " types ..
@@aadi2456
Mr Modi's BJP was reelected in 2019. Modiji could have started privatisation soon after this victory and by the time of 2024 Gen Election, he would have privatised 6 or 8 key public sector companies.
More importantly, had Modi been serious abt privatisation, soon after winning 2014 Gen Election, he could have appointed an Investment Bank.to thoroughly research each of the privatisation candidate ( may be say 15 co's) and ask the Inv Bank to then produce a DRAFT PROSPECTUS of each of these companies which would then be the basis for public & parliamentary debate to judge the mood of the public.
Obviously, the draft PROSPECTUS must list the financial & economic benefits of privatisation & also the list of statutory regulatory safeguards to protect consumer & monopolistic exploitation ( post privatisation).
In this way, during 2019 Gen Election campaign, Modi could have included privatisation of selected PSU compsnies in BJP'S ELECTION MANIFESTO, including a summary of each of the privatisation PROSPECTUSES The chances are, BJP would have won the election with a big majority, irrespective of whether privatisation of selected PSUs was in the BJP MANIFESTO or not, since Congress was so unpopular.
What I'm trying to say is that BJP should have started to take serious steps after winning 2014 Gen Election towards privatisation by producing draft PROSPECTUS of selected companies for privatisation & the benefits to the public for going ahead with this exercise.
SO, by the time of 2019 gen election, the opposition parties , in all probability, would then have found hard to challenge the argument for privatisation, especially if the draft PROSPECTUS is produced by a reputable Indian Investment bank in collaboration with the govt owned SBI and the listed financial & economic benefits are genuine & believable.
Anyway, it's all Ganga water under the bridge now. However, Modi, I believe, should try to select at least two PSU companies for privatisation before 2024 fen election.
Guptaji I am surprised that even after recent episode in YES bank u still believe that privatisation if Nationalist Banks will stop bank scandals. We know that you are Rightist. In a society capitalism will be suceesful only when corporates function with moral responsibility. In India in these seventy years either in Yes Bank or in ICICI the corporates have not acted genuinely and also the Directors in the Board.
Such being the position I am surprised still u believe all the problem in Banking is due to Nationalist character. The reason for failure for financial system is Unethical corporates who availed the loan and inefficient/inexperience bankers whi scrutinise the loan sanction and Not committed Directors in the Board of Banks and Culprit Statutory Auditors who prepare the project papers and who certify to the bankers that the Balance sheet and also do the Concurrent Audit in monitoring loan portfolios. Pl understand unless all these change your Rightist view will not be successful and will not help to see New India.
scandals is present in every corner of so called developed countries
Well said sir.
95% of npa is of psu
Gupta ji is improving. Coming early these days.🙂
@Mohit Sharma not that much editing required
@M S Good observation.
I am not sure if SG sir supports INC or BJP but I am 100% sure he is a capitalist at heart.
Every body verrs round capitalism.socialism is for postiring
I so hope that someone in the govt is listening to Sg sir and then just before the 2024 elections, Sg makes a CTC titled "Everything that I recommended to the Modi govt and they implemented"
Kush Desai if you are still expecting anything from this Govt other than flashy headlines, God bless you!
You bet they're watching. But, I don't think they'd take his advice. I think they're more interested in the comments than the content of his videos.
Did Indira commit a massive economic blunder like demonetization?
Why do you always bring in Nehru, Indira, etc. into any wrong that Modi does?
Next time, please credit anything that Modi does right to Nehru and Indira too.
This episode is not about what Modi did right or wrong. It's about Indira Gandhi's mistake and why Modi is not reversing it. You're the one who's biased, not SG
Emergency was bigger blunder any ways....she was the first to do a move like demonetization in India.
Edit: though demonetization did help a lot that time...daan petis in temples were filled with notes.
if you know any economics , nationalisation was bigger problem than demonitisation it created incapable and faulty system and india is still struggling for it.yes demonitisation was stupid but indra have a lot to blame.
The present problem with the Indian economy is not due to nationalized banks. The economy did will very well for more than a decade (mid-2000s to 2016) with the same nationalized banks. Trying to shift the blame for the slump in economic growth to banks is missing the woods for the trees. Private banks are no solution to this mess in the economy - they too are burdened with the same inherent problems as nationalized banks.
@@SwapnilSoparkar 🔥🔥🔥😎😁
Sir please make a video on why is it so difficult to remove red tapism in India....and economic recovery after covid and privatisation of railways?
🙄 Red tapism, bribery corrupt bureaucrats, strict rigid policies, unnecessary documentation-hassle and time-taking clearances, labour law, poor connectivity & outdated uneasy infrastructure of India is not letting outside companies come & invest in INDIA, how will we grow?....we need to be welcoming of FDIs from other democratic countries, FDI will bring skills, job, new technologies, dollars, healthy competition and improving economy in India only if we can mitigate all that I mentioned in the beginning of this comment. 🙄
@Rajat Chatterjee well it is not impossible, because other countries are example.... but it has to be a collaborative effort not just govt..the problem is in mind-set
@Rajat Chatterjee yaa so what is your point? I just pointed out the issues in iur systen, we cannot change anything without first instrospecting the problem areas and lying issues, what can you change by shooting in the dark?
Look at the TOI paper cut at 1.08. there is a news item carrying assam's flood situation. 50 years later, nothing has changed! You'll see same news item even on today's TOI issue. Irony!
@Rajat Chatterjee A long road ahead for India to become a superpower, with so much regional disparity.
Recapitalisation is a needed move for safety of economy its NOT A MISTAKE
@@manofsanYes,
But without that people will lose savings and also increase the risk of indian economy bank industry makes mager part of the economy
There are hundreds of banks which was bankrupt with in last seven decades and lac's of crore money got looted by private players. Bank nationalisation make a safeguard for those small savings and hard money earners. Bank nationalisation has their own benefits. These are more inclusive. All PSU bank are in operating profit, but it's government involvement that bind it from recovering bad loan. Firstly govt make pressure to finance corporate sector and then for layoff. That's the harsh reality of PSU bank making losses.
Nationalised banks were made to give loans to Patanjali to buy the same Ruchi Soya from which they were trying to recover their dues. He should be talking about nationalizing the privately run cooperative banks which are mainly there for converting black money into white.
Privatisering everything is not panacea. We were isolated from subprime crisis due to public sector banks. Yes bank private but what is has brought ..
18:38 bird chirping ..I went to balcony to look out which bird is calling me at night ...then I realised..it's the print 😁
Note to video editor:
Once again you start playing the outro too early. This has been done in CTC, in national interest and other videos as well. Either let him complete the sentence and then roll the outro or just add a fade in to the outro audio so that the words are not obscured. This had been fixed briefly but the issue seems to have resurfaced again.
The most poignant impact of bank nationalization has been the demolition in the value of the rupee. Is it any wonder then, that the Indian saver habitually prefers to keep his or her savings in gold and property rather than keep it in the rupees which will be plundered by the netas and babus in stealth by turning the printing presses on continuously. At least, the government cannot print gold or property; so far that is! The urban sprawl which blights India's cities and the manufactured problem of gold smuggling has to do with just this - crashing rupee because of untrammeled lending followed by massive loss taking through loan waivers. Ordinary people trying desperately to maintain the value of their savings have been turned into criminals as a result by the government which is supposed to protect them. 🤦🏻♂️🤦🏻♂️🤦🏻♂️🤦🏻♂️🤦🏻♂️🤦🏽♀️🤦🏽♀️🤦🏽♀️🤦🏽♀️🤦🏽♀️
This guy ticks every stereotype of a North Indian uncle.
All those who talk against bank nationalisation so eloquently, because, all our savings bank deposits are safe, as of now!
dammit do you even understand economics bank nationalisation creates monopolies of the state and state has the power to manipulate the market wich it does for its own political motives not to help the poor ,DO HELL WITH YOUR SOCIALISM ,join q/rightlibertarianism.
Hoping to live 51st anniversary of demonestation to see state of economy.Waiting for a govt to grow economy 10 plus .
Then why was Maruti(a govt joint venture with Suzuki) successful ? Coming years after private sector Ambassador car and Premier Padmini Fiat car were unsuccessful in creating a good automobile manufacturing ecosystem. Main thing is govt should setup and then sell shares to public and pull out once the job of establishing a sector is done. BOOT - BUILD, OWN, OPERATE, TRANSFER
SG is wrong, demonetization is a totally disaster but not the bank nationalization.
Who ever watches this video will definitely forget Bank Nationalization thing but surely remember Nagarwala story. Who knows it may become a Bollywood film. Thanks a lot for this story. Coming to Bank Nationalization and the thing fallowed SG is spot on, only thing is he should have mentioned AXIS Bank model which has actually worked.
If nationalized banks are so bad for India (I am not defending the decision to nationalize these banks & even today, they can certainly do more & better), How about a "Off the Cuff" interview of 4 CEOs - 2 each from largest nationalized & private banks?
Sir, you started with telling drawbacks bank's nationalisation and ended up with one storey, ...Waah....💐💐🙏💐💐,
I like your light coloured Kurtas! Perfect for this monsoon season!
What Minoo Masani said about nationalisation of banks was in the backdrop of corrupt bureaucracy and corrupt political class of that time whose character he was sure would not have changed in future as well.These two elements our society can cast an all pervasive magical spell to turn every thing arround them corrupt. It is not that corruption is deep rooted in the public sector banks.It exists in the private banks also.Dewaan Housing,Axis Bank ICICI Bank.IFLC are a few of such private entities.
Shekhar has wasted half the time with the mysterious SBI scandal. By itself, it is a unique unusual case but it hardly makes a case for privatization of PSBs.
"Democracy is the most vile form of Government"~ James Madison, Father of the American Constitution
That's why the Electoral College is a real process of choosing a President..
And the low IQ duffer thinks they choose their President by Vote. 🤣🤣
Aaj toh Gupta ji ne maja hi dila diya. Make a movie out of it.
The story part was very good. SG, though i dont agree with your bank privatization section. Feels you have ingnored all the good things and concentrated on shortcomings only
Like?
Putting money in SBI or Bank of Baroda kind of gives security feeling that the govt is there to look after if the bank runs into crisis.
@@rishabhdudeja2761 so for the sense of personal security, economic blunders should be ignored? Give a rather economic argument than a personal insecurity.
@@abhishekkamboj2791 wasn't yes bank also a private bank?
who saved it finally?
yes, he has ignored all those million people employed by the PSU Sector who had secure jobs for more than 30 years, bought a house for themselves, who have kids and now they are getting married and now have retired and living a relaxing life on their pensions, compared to today's millennial generation who jump jobs every 2 years and hardly can afford to buy their own houses today.
Thanks sir for sharing this story..
Surprisingly had never heard this before...
Bank Nationalisation actually didn't worked bad for India. People in all parts of India benefited from this and the trust was build up enormously in rural parts of india. People began saving their money in banks due to the bank Nationalisation. This is essentially because people believed that Govt of India is there for them if any bank will fail. Guptaji just see what private lenders achieved?. Can you see any of these private banks in a village? And what is the minimum balance you should have just to open a savings account? What will happen if NPAs in these banks will increase drastically? Who will pay back money to the customers in case of any fraud happened in the bank? Just a poor thought & brainless analysis... Sorry Guptaji..
No body will deposit money in private banks especially in small towns.....that is the reason government had to resort to nationalisation to break this habit of people saving their money in their houses..........then their was the money lendor problem and their high interest loans that was killing people and creating gunda raj........still people even in cities prefer having term deposits in public sector banks despite of them offering less interests........after the Yes Bank Bailout maybe people will start thinking that government will not let their money go bust even in private banks case......but it's a very long road and it's not going to happen.
Please please give more suggestions to ruling governments both central and states...like on Banking, AirIndia, BSNL, Petroleum.
And Gupta ji ur stories make us travel back in time... please continue with ur history stories....
I'm from south so v never got to know Vajpayee, Indira, Rajiv,etc., personalities or how Delhi used to work those days. Now i'm knowing them from ur stories.
We need more of these stories 😂
Actually I respect Shekhar Ji a lot, but he is not telling the facts about bank situations before 1969, which was controlled by Rich and Maharajahs. What we see now very common and grass root people in good position because of good policies of those governments otherwise India would never become a Republic but would have remained in control of Princely People.
@@ravindrapatil2455 we cannot assume that All "princely people" were evil ! I wouldn't dare say that the Mysore maharajas were evil. See we cannot live with the mentality of one guy getting richer by making another man poor, wealth is created when both parties benefit mutually. Banks are such an instrument in the modern world, this is not the age of Vikings and pillaging anymore.so I tend to agree with Mr.gupta.
What is he repeating around 4:00 after telling the three things Minoo Masani had predicted would happen? I hear "who are king (kin?) now who are". Can anyone help me understand.
Bank privatisation would be very tricky to execute. RBI has a strict policy of not granting banking licences to big business houses. Also, any foreign entity owning a significant/majority in an Indian bank will not be allowed. Only option would be to ask private banks to takeover these banks. Only HDFC, ICICI and Kotak are in any kind of shape to seriously consider acquiring another bank. Even their capacity to absorb bad debts of these PSUs would be limited. There would be many other problems like unions protesting, cultural mismatch etc etc. Very very difficult to execute.
Sir the reasons why the PSBs are existing today are as following
No private bank shall open bank accounts of poor and destitute
No private bank shall extend agri loans to farmers with small land holdings
No private bank will make endeavour to implement various government sponsored scheme like ujjwala yojna, jandhan yojna, atal pension yojna, vidhwa pension etc etc.
No private bank will dare to finance long term risky infrastructure projects. Make a research on the exposure PSBs have got in metals, infra, avaiation, telecom .No private bank will dare to do that. Remember all those highways, airports ( which many assume to be fruits of privatisation) would have been non existential without PSBs
However good an idea might be,the result depends on the implementation and the people who implement it
Bank nationalisation wasn't the cause of scams .It was the political establishment which ran the country
Number of banks, and through that employees increased in lakhs
Majority of them were not scamsters or dishonest people or lazy people.they worked as per the top bosses of the banks who in turn licked political leaders boots
The same could be done to Pvt banjs. By polity and govt.
If govt recapitalises PSU banks,there is no hue and cry. Imagine what will be the public reaction if govt bails out a sinking Pvt bank directly
And please Banks should not be run to be popular at stock markets
They have also a social duty to the society.
Instead of cleansing the system,s faults
Should the banks itself be privatised?
"Two wrongs don't make a right"
If Modi has to correct past blunders of past govts then v can go back and start
Eg.. 42 nd ammendment to the constitution of India which changed the basic nature and words of the original constitution adopted in 1950
This will be blasphemy to many now
.. Walk out of Simla agreement with Pakistan..it gave us nothing despite victory in war . infact v returned their POWs90k.
..walk out of Indus treaty
For many of us these also were blunders
What say SG ji
.. Undo the shahbano ammendment as it was wrong then and now
Modi has majority to do it
Imagine the reaction
Modi ,s party,s election manifesto didn't promise what SG wants
He and his team better stick to their manifesto promises to implement
In the context of this subject, why not give permission to 100 Pvt banks in various levels ( micro finance institutions can be the beginers) so that people have an option to bank based on service, quality and safety under law.
Bangladesh,s My Younus and India,s Manish Sabharwal .. two different successful icons from two different ways of creating wealth have suggested similar.
Working in a RRB I beg to differ completely with SG on this issue. The Bank nationalization may seem like a loss making making exercise when you see it through the capitalistic eyes. Yes you may have problems to face while trying to get your work done at the PSBs but that is majorly due to the employees being overworked. In a rural or semi urban branch each employee is handling nearly 100 people by himself daily. And mind you, we don't get to turn people away if they cannot maintain a minimum of Rs. 10000/- balance. We have to accept a zero balance account on which the Bank does not earn any profit but rather spends money just to open and maintain it in its server, all in the name of social security schemes. Just quoting a IIM Banglore study, the PSB's opened a total of 16.5 crore Jan dhan accounts within the first six months of implementation of the scheme. The private sector banks just 68 lakhs. The fate of many other social security schemes such as PMJJBY, PMSBY, PMFBY, PMGKY is the same where more than 90% of coverage has been by PSB's working overtime with limited staff.
Another issue that is often quoted is NPA levels. Nearly 80% of the NPA o/s in PSB balance sheets is due to large corporate accounts. The average 99% bank employee you see has nothing to do with those accounts. Such accounts are far out of our pay grade and work powers. They are processed and sanctioned by independent comittees which involve government participation.
So, my question is, if privatization of PSB's is the solution to solving all the issues of corruption and NPA plaguing them who will open the zero balance account of a chai wala who cannot afford to keep Rs. 10000/- in his saving account as minimum balance.
He's right......We need to privatise all PSUs and banks....Its the only way the country will grow...
SG, this time u have got this completely wrong
See, Ashutosh, Bank nationalization was very much needed at that time and its still needed even today. So Modi is very much correct in not reversing it....do u think this pvt banks will or would have given their services to the poor in rural areas where they don't see profit ?
Very nice analysis by Shekhar Gupta ji. Socialist policies that were adopted by Nehru ji and Indira Gandhi were in complete influence of Soviet Union, which (though it was India's friend and well wisher) turned out to be disastrous for our country. Time has come that people realize the importance of free markets and corporate banking system. The idea behind nationalizing banks and airlines might have been noble, but has failed because of corruption and nexus between the politicians and top management of these banks. Air India has failed because politicians think it is their own airline, and so have the banks. Government must sell the stakes of these nationalized banks to corporate entities. However, before buying the stakes, corporate houses may ask the government to assume the bad debt of banks on its books, since bad debt is alarmingly high for public sector banks. Poor public sector banks: they are forced to give huge loans under political pressure, which often turn bad loans.
Who has ruined our banks: the private sector. They took loans, transferred the money to London and Switzerland, took back a little through Mauritius. The private banks are not any better. The private sector is evil, they are thieves and swindlers. Indira Gandhi did a lot of good things in 1969-73. Vajpayee and Mm Singh, and Modi are destroying the economy as their advisers take their clue from the IMF and World Bank. Railway privatization will be another blunder, after the democratization and lack of support to the consumers after the corona attack. Those who are giving advice to Modi on economic matters should be all fired.
I dont agree with Mr. Gupta. Private banks need to prove a lot before emphasizing the privitisation of Public Sector bank
Amazing SG, plz come out with such gold every sunday.
Excellent episode. The Nagarwala case was like reading a Jeffrey Archer or Ken Follet. Sharing old article links is what we look forward to.
Having said that, and spent nearly 30 years studying Banking and working for them, I disagree that privatization is a good solution. Banks, private in the US, UK and Australia have done as many terrible things as our nationalized banks. Many examples exist. So we need to find a better solution
If India ever privatizes these banks, it should forgo central banking as well. Allow for private money to become the norm, phase out gov't mandated money.
Indeed Gupta ji you are a good story teller.... I'm afraid who will narrate the story of the current situation and what will he narrate
Dear Shekhar ji, great episode as always. I remember you had done an excellent episode on the idiotic proposal by Mr Yogendra Yadav and others to appropriate private funds to fight Covid-19. Something similar was provided for in the FRDI bill in 2019 to repair the equity capital of banks, but was withdrawn due to the outcry. But there may be another bill in the pipeline, FSDR bill, which aims to do the same under a different wording. Could you please do an episode on the same? Many thanks.
Indira and Modi have many things in common. Indira's slogan was "Woh Kahte hain Indira hatao; main kahta hoon Garibi hatao" Modi once said "Woh kahte hain Modi hatao main kahta hoon Bhrashtachar hatao." This is one among them.
Indra and Congress has the dubious distinction of neutralising every opponent that also in accident. S.P.Mukherjee , L.N.Mishra, Sanjay Gandhi, Madhav Rao Scindia, Rajesh Pilot , Dheen dayal Upadhyaya, one Brittania biscuit baron, Jimmy Nagarwala, Registration paper scamster, Share market scamster Harshad Mehta and some more people all died mysteriously !
Bank nationalization per se was not a bad decision at that time but not to privatize them after, say 2000, was certainly a bad decision by successive governments. Of course, Modi must take maximum blame for this. However, Bank recapitalization is not entirely a lost money; it is only a technical adjustment of equity given and taken back as govt bond. But there is no doubt that market value of PSBs is peanuts compared to private banks. Modi should offer a govt deposit scheme (risk free) for saving bank and fixed deposit accounts and privatize all PSBs. Market will take care of the rest. If Modi could do demonetization, then why not get rid of PSBs and PSU?!!
Can someone elaborate on the cons of nationalizations of banks?
Whether be it bank nationalization or bank privatisation corruption is bound to hppn on both the sides bcoz accountability was every time low at those and even nw
No one cares if the bank bankrupts
We need social awareness abt these issues,these things shud to be taught to us in class-how to talk to a lady,how to find something fishy in banks,how to hold govt. accountable,how to hold democracy high,etc.
Until ppl awareness doesn't develop,politicians be it left or right will play this foolish game and ppl r the ultimate loosers
In all honesty, the Modi govt has taken a lots of steps to reverse that one decision of bank nationalisation. From consolidating the banks from 21 to 12 and a plan to reduce it further to 4 and ultimately privatising it maybe barring the SBI would and should happen. Regarding the capitalization of banks, that is a tricky thing as you cannot allow banks to fail in India. We can see the hue and cry with PMC bank which had a very small value, but yet was a big story with a lots of people loosing livelihoods and then lives when it was made non functional.
As he said , SBI is a fine run bank, only if it is privatized, the market valuation can increase significantly
1. Corruption in private banks like Yes, icici etc. Hua ya nahi hua!!!! Its not just in public sector.
2. At lower level, there's corruption in almost every state & in several central govt dept. This is not the case with psbs. Corruption nahi hua ya hua
Baking in India when it was private was owned by few families. Jobs were given to all family members, friends etc. Nationalisation of them opened banks to common people for using them and getting jobs in them.
Private banks would have never given loans to buy a cow , put up a pan shop, open a tea shop etc. They wouldn't have allowed govt run hundreds of schemes through them. Remove nationalisation of banks from the equation half the govt schemes would have been impossible to implement on ground.
How a recent suicide of an actor is calling out nepotism in Bollywood just imagine same thing happening in banks only exception to Bollywood is that you would have had your own money in banks.
Luckily, as we know from global experience, private banks will have no corruption 🙄🙄
Nationalisation of bank initially expanded the branches and helped to mobilise saving. What about Yes bank and earlier Centurian bank. At present I agree that one by one we should nationalise few banks.
Denationalization would face unprecedented unimaginable protests in the country. People are still crying for more PSUs.
It's not fair to debunk bank nationalization as a total failure. But for nationalization, the poor and marginalized sections of our society, including farmers, artisans, cottage and micro enterprises, self employment ventures etc wouldn't have dared to enter bank precincts. But for nationalization, bank branches wouldn't have been opened in villages and semi-urban centres. Unprofessional managements, bureaucratic and govt interference, crony favour dispensing and the like are to blame for the failure of bank nationalization.
₹60,00,000 in 1970 is ₹2555,26,20,000 today. That is 2555.262 cores !!! That is 341.02 million USD !!!
Awesome style of storytelling 👌👍🙏
Wow, this video comes exactly 1 year after the #CuttheClutter for Nationalisation of Banks on 19th July, 2019. Great information. Only lately I started realizing how important it is to also know some history of key events and people in this country.
Why almost all government ventures are failing. Privatisation of everything could not be the solution just because government and government officials are corrupt. Main problem is corruption and lack of transparency wether it is state owned or private organisations.
The old paper's says Assam is in Floods.2020 No media is covering, Covid19
Life minus The Republic and plus CTC is so soothing, enlightening and peaceful. Today is my 1st anniversary of dis-associating with The Republic. Thanks SG!
Beautiful story but what I miss to understand is this : what would be the need for a government to take out money from a bank if it was for a military operations ? And why would it be called a scam ?
Too good!!! Please do share many more such stories with us. I am sure you have a lot to share with us. At the same time request you to share with us what is land reform bill whether how it will be helpful for Indian economy on and what are the disadvantages on that bill
Wonderfully well informed, dispassionate analysis driven by objectivity. I wish we had more commentators of his ilk across the divide.
I guess we are here to more listen to funny tidbits in banking history, and less to analyse and put up strategy.
So is this cut the clutter regarding banking system in India or Indra or Morarji .......
Ya fir Atal ji
U left us confused
You are too good Man .. my daily dose while I m driving office.. 🚗
Shekhar Ji. Iss story pe tho OTT platform wale net series bana sakte hain. Aap script likh dijiye.
Hey, print can you make an app for play store, it would be easy for us to keep in touch.
Wow!! That was one heck of a story. SG, you are an excellent story teller. I was closing my eyes and trying to visualize it. It is like a thriller movie. I wish it was longer 😒😒
Hello Sir, very nice story. Can you also do a story on history of India’s personal income tax. Why dont we have tax on agriculture, How come taxes become as high as 97% in 1970s. What is the politicsl and economic background on that? Thanks
Sir, I think PM Modi watches Cut the clutter, Reuters has reported that all the non-merged PSU banks will be privatised,proposal to be tabled in Cabinet soon..
Very good content, well articulated as always. I wish the sessions and topics being discussed had animated videos, sketches of characters/ subjects and objects entailing the agenda.
But dont forget that ICICI was a PSU not long ago. I still dont know why an IDBI didnt use the same model as ICICI. You are right but PSU banks are better than the disaster of IDFC and Yes Bank. HDFC valuation is not justified and if they are so profitable why are they not attracting more business. Their fees are much higher than a PSU Bank. One bounced cheque in PSU banks is still Rs 10 while HDFC would charge Rs.500. That is how HDFC is more profitable.
Modi is only interested to winning election not in governance. Down these stumbling years on could even ask if he is fit for the purpose.
Modi is a politician. Not a leader.
This was an interesting analysis and story ! Keep sharing such events from your vast experience. Thanks Sir !
Is it necessary to share the details of intelligence work?
Is it a scandal or an operation went wrong?
Editorial discretion SG?
They say a famous South Andhra Indian Baba was.a.conduit to buy nuclear parts. Because nuclear scientists were his bhakta. And many foreign fellows.
Is that true?
Some mysteries.
But India became a.n Power. That's what matters no?
Sir with due respect I would like to point out that public sector banks have a lot to contribute to society so privatizing them is a not a good idea specially when we have a lot of poor and rural population we need them for financial inclusion. Not for example you should check the 3 government schemes one jandhan yojana second mudra and standup india in which lone is provided to poor scs and woman’s for doing business and third the old scheme from congress time that kisan credit card and also all kind of priority sector activities. Just compare the performance of public sector banks like sbi and private banks like hdfc and icici you will not find any of these banks doing all this activities they are only involved in big cities and only serving upper middle cast and rich.
Every episode is better than the previous one. Thanks, SG!
The story is fantastic .
Bank nationalisation,COAL ind nationalisation and quota raj,licence raj were such blunders that India is paying a huge price till today.That was extremely poor POLITICS during congress regime.All these policies led to huge corruption and inefficiency and ruined our country's economy.
Pls add subtitles for us to better understand
See what happened to Yes Bank , a very big private bank.
Entire valuation of PSBs and usefulness to the economy is evaluated here in the video on the basis of market valuation . But market valuation is fickle and changes every minute. Even if market valuation of a private bank is more than valuation of all PSBs , country may not be affected by the closure of that bank as much if all PSBs closed . The need for re- capitalization arises because PSBs have to implement government policies and government programs . Hence it becomes duty for the government . As for as corruption and irregularities are concerned, it happens both in public and private sectors . Many times they are partners.
This is a really a good scandal story which can made into a flim
Shekhar...How about reversing the bad populist decision of caste based reservations in higher education and government/ psu jobs which lets down merit infront of electoral politics of majoritarianism.Pls discuss this one as well in your show
The option of opening the industry to private players but keeping the PSU white elephants on government books is a terrible outcome for the taxpayer, as they are the ones who will ultimately keep bailing out these loss-making entities. One can simply look at Air India for instance.