Why Indian Nationalized Banks are Safe?


While most of the financial organizations have their contribution in the downfall of all the economies of the world there are quite a few financial organizations which are not affected with this great trouble of recession and are performing well as if nothing has happened. You can notice how these organizations keep your business secured all the time no matter what happenes in other part of the world. Indian Nationalized Banks - Why and How They are Safe!!!

India is well known for it's traditional living and the largest democratic country. In financial terms, Investors who seek fast money have been calling India as Sleeping Giant. Since the last decade India started picking up through accepting Foreign Direct Investments (FDIs) and allowing Financial Institutional Investors (FIIs) to invest their funds in India only in the sectors like Infrastructure, Printing, Telcom, etc.

For this, India has been blammed so many times that it's not opening all the sectors for foreign investments. But India has been very careful in moving towards global economy so far. Now the government of India, known for sticking to traditional practices, is bringing more foreign investments. The politicians are making trips to foreign countries to attract prospective investors. That brings state of the art technology and creates hundreds of thousands of jobs in India.

Even though India has made a big move towards being a giant economy, it's still traditional regarding its banking practices. Getting huge success in each sectors where foreign investments were allowed, Indian Government started favoring privatization of nationalized banks. Doing this, Government has been expecting that the banks can become more competitive and can become big with the additional funds they get through private investments.

So many Bank employee unions rejected the proposal of privatization of nationalized banks. However, recession is definitely not one of the reasons that were shown during that time by these employee unions for rejecting the privatization proposal. In fact, nobody expected that there would be a financial crisis that will gulp the whole world like a wild fire. Although the unions have their own reasons, overall, they have been against to the privatization proposal of the government.

Indian banks are known for their financial regularization. The Reserve Bank of India (RBI) always keeps an eagel eye on the transactions of these banks. It is important to note, that when the banks of the whole world were going for the new Innovative Financial Investments, which promised them more money, Indian banks had not even looked at them. This may be because of their heavy inclination toward the known traditional banking practices, norms, and principles.

Now that the world's banks are going with financial crisis because of the same Innovative Financial Investments, Indian Banks are doing their business well without losing a dime so far. It's really a case of exception. Indian Banks gave a slip to the financial crisis by not subscribing themselves for the new Innovative Financial Investment policies, while majority of the world banks were subscribing. Few are these blessings on Indian Banks and reasons why they are safe.

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