The Impact of Privatization of IDBI Bank in Indian Economy

Vishal Kumar,Soumak Ganguly,Payal Ghosh,Manisha Pal

doi:10.47607/ijresm.2020.407

Abstract

Privatization refers to the public shares and Assets which are sold to the private sector in the economy. It decreases the power of government control and creates the other policies method. Privatization leads to cutting short the capital and revenue expenditure, which leads to an increase in share value in the market. During the pre-privatization period, the government used to pay less amounts of dividends to its shareholders due to its complex cost structure. Privatization leads to cutting short the capital and revenue expenditure, which leads to an increase in share value in the market. It also gave information about Public and Private sector banks. Our objective is to compare the pre and post-privatization performance like other banks of developing countries shows that privatization resulted in significant gains in profitability and efficiency. To evaluate the impact of privatization in the Indian banking sector and the relationship between privatization and Indian Economic growth by using a case study of IDBI bank condition of Indian private sector banks is analyzed using the financial statement of IDBI Bank with the help of different research methodologies.

Highlights

Privatization means to change from public to private ownership or control or transfer of assets and service functions from the public to private hands
It has been proved post-privatization the instructions are earning more profit than the existing PSUs due to the cutting short of capital and revenue expenditure, which leads to the increase in share volume in the market
The important role played by PSEs in the economic and social development of Indian economy; this has been stated that PSEs serve the best public interest by fulfilling all the desired financial and economic obligations as per the government’s plans and perspectives, since, an increase in financial profitability is neither a necessary nor a sufficient condition for the enhancement of society’s wellbeing; they have opined to devise a policy which simultaneously fulfills both the social and commercial needs

Summary

Introduction

Privatization means to change from public to private ownership or control or transfer of assets and service functions from the public to private hands. The effect of Privatization in the banking sector gives higher emergence of loans and investments. It increases the performance of the work after obtaining a target. Bank Started taking the defaulters asset and auctioned it to the other firm so that some money recovered from that asset Due to this bad debt problem, the banking sector cannot reach up to its projected growth. Some new products are introduced for-profit motive; it opened for Foreign Direct investment and helps the country to develop a strong economy It has been proved post-privatization the instructions are earning more profit than the existing PSUs due to the cutting short of capital and revenue expenditure, which leads to the increase in share volume in the market. Loss-making private sector undertakings in India show a negative impact in the Indian economy so to bring it in stable form public sector undertakings are transferred to private hands

Literature Review

Objectives

Research Methodology

Findings