The Nath Bank ( bn, নাথ ব্যাংক) was an Indian-owned bank founded by Kshetra Nath Dalal in 1926 in

Noakhali Noakhali ( bn, নোয়াখালী, , New canal), historically known as Bhulua ( bn, ভুলুয়া), is a district in southeastern Bangladesh, located in the Chittagong Division. It was established as district in 1821, and officia ...

, now in

Bangladesh Bangladesh (}, ), officially the People's Republic of Bangladesh, is a country in South Asia. It is the eighth-most populous country in the world, with a population exceeding 165 million people in an area of . Bangladesh is among the mos ...

but then in undivided India. By 1947, when the

Partition of India The Partition of British India in 1947 was the Partition (politics), change of political borders and the division of other assets that accompanied the dissolution of the British Raj in South Asia and the creation of two independent dominions: ...

was imminent, the bank had its head office and three branches in Noakhali district, and a branch in Comilla in Tipperah District. Noakhali and Tipperah districts became part of

Pakistan Pakistan ( ur, ), officially the Islamic Republic of Pakistan ( ur, , label=none), is a country in South Asia. It is the world's List of countries and dependencies by population, fifth-most populous country, with a population of almost 24 ...

, so the bank moved its head office to

Kolkata Kolkata (, or , ; also known as Calcutta , the official name until 2001) is the capital of the Indian state of West Bengal, on the eastern bank of the Hooghly River west of the border with Bangladesh. It is the primary business, comme ...

. At that time, Indian banks were facing asevere crisis. In 1949, the Nath Bank had to be bailed out by the Reserve Bank of India. That failed to resolve the crisis and the bank was finally liquidated in 1950. The economist Arun Ghosh attributes its collapse to its over-aggressive expansion of branch banking. The failure of the bank created a panic among investors.

References

{{Banking in India Defunct banks of India Banks disestablished in 1950 Banks established in 1926 1950 disestablishments in India Indian companies established in 1926