Privatization involves selling nationalized industries and parts of the public sector to private businesses and individuals, transferring ownership from public to private. The document outlines several objectives of privatizing banks: 1) To improve performance by incentivizing private owners to work for profit and increase efficiency. 2) To promote competition as private owners work to increase deposit rates and profits. 3) To reduce the burden on government by having the private sector own and run financial institutions while government sets rules.

2. PrivatizationDefinition:
1.Privatization means selling of
Nationalized industries and other parts
of the Public sector to private businesses
and individuals.
2.Privatization is the denationalization of
an industry transferring it from public to
private ownership.

3. Objectives
of
Privatization

4. Improve Performance
a) The purpose of Privatization of
Bank is to improve performance.
b) When ownership is in private hands
they work for Profit.
c) The operational efficiency increases due
to proper control.

5. Promote Competition
a) The purpose of Privatization of
Bank is to promote competition.
b) The owners are interested to increase
the Rate of Deposits.
c) The larger the Deposit the larger the
Profit.
d) The sense of competition develops
among bankers.

6. Reduce Burden of
Government
a) The business is conducted by
Private sector & reduce the
burden of Government.
b) The Government can frame rules for
proper working.
c) It is not the duty of Government to
own & run financial institutions.

7. Release of Funds for
Social Sectors
a) The Privatization of Bank is to
provide funds to Government.
b) The capital increased in Bank is
available for social sectors.
c) The Government can set up Schools &
Hospitals for Welfare if General
Public.

8. Accelerate Pace of
Industrialization
a) The sale of Banking business to
Private Parties is helpful to
accelerate pace of Industrialization.
b) The Funds invested in Banking
sector becomes free for
development of Physical &
Technological infrastructure.

9. Remote Capital
Market
a) The Privatization of Bank is useful for
promotion & strengthening of Capital
Market.
b) The shares of Privatized Bank are sold
to General Public.
c) The Capital Market becomes stronger
due to increase in the wealth of
shareholder