Downfall of Banks In India – Bankrupt After Partition, Recession

Downfall of Banks In India

  • Bank of Hindustan, founded 1786. Ended in 1832.
  • General bank of Bengal and Bihar which were established in 1773 lasted very few years.
  • Indian Specie Bank lasted till 1911.
  • Bengal National Bank – NA
  • Bombay Merchants Bank – NA
  • Union Bank which was founded in 1839, failed in 1848 as a consequence of the economic crisis of 1848-49
  • Bank of Upper India – Started in 1863 and failied in 1913.
  • Oudh Commercial Bank came into existence in 1881 in Faizabad but failed in 1958.
  • Palai Central Bank founded in 1927 and closed in 1960
  • Global Trust Bank ended in 2004 because of scams.

1947 Partition and Bank Failures

No. of banks ended their operations after the 1947 partition.
(Year – No. of banks failed)
  • 1947 – 38
  • 1948 – 45
  • 1949 – 55
  • 1951 – 60
  • 1952 – 31
  • 1953 – 31
  • 1954 – 27
  • 1955 – 29

Effect of Economic Recession on Indian Banks

Depression of 1913 – 1918:
94 banks in India failed between 1913 and 1918 as a result of recession:
Year of Failure – No. of banks failed
  • 1913 – 12
  • 1914 – 42
  • 1915 -11
  • 1916 -13
  • 1917 – 9
  • 1918 – 7

2008 – Year of Great Depression and its effect on Indian Banks

Recent economic crisis which affected majorly to the banks in United States of America, had also resulted in bankruptcy of 18 Indian co-operative banks during the economic year 01st April 2008 till 31st March 2009.
  1. District Cooperative Bank Ltd of Gonda in UP.
  2. The Maratha Co-operative Bank of Karnataka
  3. Parivartan Co-operative Bank of Maharashtra
  4. Ravi Co-operative Bank
  5. Indira Priyadarshini Mahila Nagrik Sahakari Bank of Chhattishgarh
  6. Varda Co-operative Bank 
  7. Harugeri Urban Co-operative Bank
  8. Kittur Rani Channamma Mahila Pattana Sahakari Bank
  9. Challakere Urban Co-operative Bank
  10. Basavakalyan Pattana Sahakari Bank
  11. Vasantdada Shetkari of Sangli 
  12. Shri PK Anna Patil Janata Bank 
  13. South Indian Co-operative Bank Ltd
  14. Rohe Ashtami Sahakari Bank Ltd
  15. Ajit Sahkari Bank
  16. Bhavnagar Mercantile Co-operative Bank
  17. Chalisgaoan Cooperative Bank
  18. Hirekerur Bank

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