‘With Good Attitude & Good Heart One Can Be a Good Banker’- Allen CA Pereira, Ex-Chairman of BoM
‘With Good Attitude & Good Heart One Can Be a Good Banker’- Allen CA Pereira- Former Chairman & Managing Director of Bank of Maharashtra, and Former Director National Institute of Bank Management,tells students during a one day National Level Seminar \ Banking Before and after Nationalization’ held on July 19, 2019 at LCRI Hall of St Aloysius College organized by the Department of Economics, St Aloysius College (Autonomous) Mangaluru
Mangaluru : On 19 July 2019 India celebrated the 50 years of Bank Nationalization, and discussions are on over the successes and failures of the financial exercise that began the midnight of July 19, 1969. The core objective for nationalization was to energize priority sectors at a time when the large businesses dominated credit profiles. Sources reveal that it started under the then Prime Minister Indira Gandhi with nationalization of 14 major lenders that accounted for 85 per cent of bank deposits in the country at that time. Six more banks were later nationalized in 1980.
The government through the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969 and nationalized the 14 largest commercial banks on 19 July 1969. These lenders held over 80 per cent bank deposits in the country. Soon, the parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received presidential approval on 9 August 1969. The banks that were nationalized included Allahabad Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Central Bank of India, Canara Bank, Dena Bank, Indian Bank, Indian Overseas Bank, Punjab National Bank, Syndicate Bank, UCO Bank, Union Bank and United Bank of India. Thereafter, in 1980, six more banks that were nationalized included Punjab and Sind Bank, Vijaya Bank, Oriental Bank of India, Corporate Bank, Andhra Bank and New Bank of India. The data shows that the nationalized banks grew at a pace of nearly 4 per cent closer to the average growth rate seen by the economy until the 1990s.
The nationalization of 14 major private commercial banks estimated to be controlling more than 70 percent of the deposits in the country, has been termed as a major turning point in economic history of India. Why banks were nationalized? How has the banking sector fared in these five decades of nationalization? What are the challenges faced by them at present? These are a few questions one needs to ponder as the Indian economy completes the golden jubilee year of bank nationalization on July 19, 2019. And locally, to discuss on all these topics, a one-day Seminar was organized at St Aloysius College, Mangaluru
The Department of Economics, St Aloysius College (Autonomous) Mangaluru organised this one day National Level Seminar on July 19, 2019 at LCRI Hall of the College. The Theme of the Seminar was “BANKING BEFORE AND AFTER NATIONALIZATION”. Allen C A Pereira, the Former Chairman and Managing Director, Bank of Maharashtra and Former Director National Institute of Bank Management, inaugurated the workshop at 9.30 am and delivered the Key Note address. Rev. Dr Praveen Martis SJ, Principal, St Aloysius College presided over the Seminar. The seminar was inaugurated by dropping coins into a Piggy Bank by the Chief guest and other dignitaries on the dais.
In his key note address Allen Pereira said, “I feel proud to be a Alumnus of this College, because what I achieved in my life is all because of the education that I got from this Jesuit institution, and I extend my fullest gratitude to my Alma Mater. I have 37 years of Banking experience, but I am not a sophisticated Banker to give a elaborate talk, since being a barefoot banker. The rate of growth in our country has diminished recently. Corporates are sinking while the promoters are rising. Ethics and Governance are the two big problems in the economic growth/Banking sector. But one should know Banking is one of the best career in the world, especially in India”
“Even as the government’s control have come down significantly since the period of liberalization, the problem of bad loans has put pressure on the banks. Both government and the banking regulator RBI has come out with a host of measures to tackle the problem of non-performing assets (NPAs). In budget 2019, Finance Minister Nirmala Sitharaman has announced proposal of infusion of Rs 70,000 crore into the public sector lenders to solve their problem of liquidity. The major problems with the public sector banks (PSBs) are governance, political interference and to an extent expertise which may not have kept pace in the area of credit evaluation and these can and need to be addressed” added Pereira.
While concluding Allen Pereira said, “A Banker having a good heart and strong ethics, no one can govern you. Ethics and governance are the two challenges that banks face in India. Banking business should be free from political interference. Ethical leadership is very important in this field. A good heart and good attitude can make one a good banker. Also amalgamation will bring more income to banking industry. All I can say to young persons is that you can do miracles if you become a banker. You need humility to be a successful banker”.
Fr Praveen Martis Sj, principal of St Aloysius College complimented the department of economics for coming up with such a informative seminar on the 50 th anniversary of nationalization of banks. Dr Norbert Lobo- Head, Dept of Economics and Dr Priya S Shetty, Head Dept of Economics (Post Graduate) , St Aloysius College, Mangaluru, the conveners of the Workshop were also present on the dais. Around 400 delegates from Karnataka and Kerala had registered as delegates for the seminar. O.O. D. facility was available for college teachers. The welcome address was delivered by Dr Norbert Lobo and vote of thanks was proposed by Dr Priya Shetty. The programme was compered by Miss Nicole Serrao, and the welcome prayer dance was performed by Miss Shwetha Rao, both BA Economics students.
Dr G.V. Joshi, Renowned Economist, Dr T Mallikarjunappa, Professor Department of MBA and Dean Faculty of Commerce Mangalore University, Mr T.R. Bhat, Former Director Corporation Bank and Social Activist were the other resource persons. They spoke on “Nationalized Banks as Catalysts of Change ”; “The Insolvency and Bankruptcy Code, The Corporate Sector and The Role of Banks in India” and “The Nationalized Banks: Challenges Ahead” respectively.
