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Submitted by V. . Singh on
Yes, despite some issues regarding full autonomy and interference, State Owned Banks have played a major role in promoting financial stability and access to banking facilties in India. State owned banks have much better records of providing financial services at relatively reasonable rates and promoting inclusive growth of banking services. The Govt had stopped giving financial support to Development Fiancing Institutions(DFIs)in India following the economic reforms initiated in late ninties.This led to conversion of larger ones into commercilal banks and the remaining regional DFIs either became defunct or shrinked in size and operations. Following this unfortunate developments growth of new entreprenuers/ enterprises has considerably declined, creating entry barriers and concentration of economi ownership. We have now more billionnaires and larger unemployment on the other hand. The story will not be much different in other developing economies. The World Banks should help and advise these economies to revive DFIs and promote Small Business Finance Companies under puplic private partnership to promote self employment and dispersal of economic ownership.