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The day India's banks died because of political priorities of a populist PM

Indira Gandhi's brilliance as a politician lay in her ability to transform the most sordid political intrigue into high ideological disputation

PMO calls for freezing of shell firms' bank accounts within two weeks

Fifty years ago, India took a wrong turn leftward from which it is yet to recover: On July 19, 1969, the government took over the banking system, nationalizing 14 banks which together controlled 85% of bank deposits. Today, even after a quarter century of liberalization, state-controlled banks still control 70% of the sector’s assets. As a consequence, credit is weak, the private sector is stunted and India has to endure periodic banking crises and bailouts at taxpayer expense. The legend around bank nationalization is this: Indira Gandhi, India’s prime minister at the ...