From the Archives (July 20, 1971): Eventful years (From an Editorial)

The two years since the nationalisation of 14 major banks have certainly been the most eventful in the history of Indian banking. They have brought about hectic branch banking and a distinct change in the pattern of lending. In the first 18 months, 2,900 new branches were opened, most of them in rural and semi-urban centres. Deposits with the 14 banks have increased by Rs. 882 crores to about Rs. 3,408 crores. There was also an increase in the number of accounts of small borrowers to 11.7 lakhs by March this year from only 2.8 lakhs in June 1969. These developments have no doubt great significance, especially as 30 to 40 per cent of fresh credit extended by all banks has been in favour of borrowers in the priority sectors. The pace of deposit growth has obviously been stimulated by the strengthening of the infrastructure and by a new class of people taking seriously to the banking habit.