Miscellaneous - This Day That Age   

dated April 29, 1956: No take-over of banks

The Minister for Revenue and Defence Expenditure, Mr. A.C. Guha, said in the Lok Sabha on April 27 that having nationalised the Imperial Bank of India and taken over as much as 22 per cent of the banking business, the Government had no intention of going any further in that direction. It was not correct to say that funds could be got for the Second Five-Year Plan by nationalising the banks in the country. Mr. Guha was speaking on a private member's resolution urging the Government to take steps to nationalise the banks. The resolution, moved by Mr. M.S. Gurupadaswamy (PSP), was rejected by an overwhelming majority. Mr. Guha pointed out that unlike insurance where it was of long-term investment and where there had been several cases in which funds had not been properly utilised, in the case of banking companies it was of short-term investment. Banking investments were also largely in Government securities. Mr. Guha said that nationalisation of banks would be most harmful to Travancore-Cochin State where banks were doing useful work.

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