Nath Bank
The Nath Bank was an Indian-owned bank founded by Kshetra Nath Dalal in 1926 in Noakhali, now in Bangladesh but then in undivided India. By 1947 when the Partition of India was imminent, Nath Bank had its head office and three branches in Noakhali district, as well as a branch in Comilla in Tipperah District. Noakhali and Tipperah districts were to become a part of Pakistan, so the bank shifted its head office to Kolkata. During this time the Indian banks were facing severe crisis. In 1949, the Nath Bank had to be bailed out by the Reserve Bank of India. Even that failed to resolve the crisis and the bank was finally liquidated in 1950. Economist Arun Ghosh attributes its collapse to its over-aggressive expansion of branch banking. The failure of the Nath Bank created a panic among investors.
