Bank and limitedcompany

SANKET UPADHYAY (Querist) 31 March 2013 This query is : Resolved
WHAT IS DIFFERENCE BETWEEN NATIONALIZE BANK( SBI,BOB) AND LIMITED COMPANY LIKE ICICI BANK, HDFC BANK, AXIS BANK?

IN THE CASE OF BANKRUPTCY WHO IS LIBEL IN BOTH CASES( LTD, AND NATIONALIZE BANK)

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prabhakar singh (Expert) 31 March 2013
The same as it is between a D.G.C and an advocate.

Guest (Expert) 31 March 2013
Liable in what sense, whether to the stakeholders/shareholders or the depositors of the banks? There is a difference of liability towards it shareholders and the depositors.

However, being an individual entity as an artificial body under company law, only bank is liable in bankruptsy case. Government cannot directly be made liable. However, being a Government owned bank, the Government won't allow any nationalised bank to declare itself as bankrupt. Government can bailout the nationalised bank by funding its resources or getting that merged with some other nationalised bank.