Public sector banks in India
Encyclopedia
Public sector banks are banks where a majority stake (i.e. more than 50%) is held by a government. The shares of these banks are listed on stock exchanges. There are a total of 26 PSBs in India.
and the new bank was named as the State Bank of India
. The seven other state banks became the subsidiaries of the new bank when nationalised on 19 July 1960. The next major nationalisation of banks took place in 1969 when the government of India, under prime minister Indira Gandhi
, nationalised an additional 14 major banks. The total deposits in the banks nationalised in 1969 amounted to 50 crores. This move increased the presence of nationalised banks in India, with 84% of the total branches coming under government control.
The next round of nationalisation took place in April 1980. The government nationalised six banks. The total deposits of these banks amounted to around 200 crores. This move led to a further increase in the number of branches in the market, increasing to 91% of the total branch network of the country. The objectives behind nationalisation where:
16856 crore profit in 2008-2009.
List
- Allahabad BankAllahabad BankAllahabad Bank , , which began operations in 1865, has its head-quarters in Kolkata. Currently the bank has 2500 branches across the country. The Chairman and Managing Director of the bank is Shri J. P. Dua. The bank has a branch in Hong Kong and a representative office in Shenzen.-19th...
- Andhra BankAndhra BankAndhra Bank was registered on 20 November 1923 and commenced business on 28 November 1923 with a paid up capital of Rs 1.00 lakh and an authorised capital of Rs 10.00 lakhs. The Bank crossed many milestones and the Bank's Total Business as on 30.06.2008 stood at Rs.83,256 Crores with a Clientele...
- Bank of BarodaBank of BarodaBank of Baroda is the third largest bank in India, after the State Bank of India and the Punjab National Bank and ahead of ICICI Bank. BoB is ranked 763 in Forbes Global 2000 list. BoB has total assets in excess of Rs. 3.58 lakh crores, or Rs. 3,583 billion, a network of over 3,409 branches and...
- Bank of IndiaBank of IndiaBank of India is a state-owned commercial bank with headquarters in Mumbai. Government-owned since nationalization in 1969, It is India's 4th largest bank, after State Bank of India, Punjab National Bank and Bank of Baroda. It has 3415 branches, including 29 branches outside India...
- Bank of MaharashtraBank of MaharashtraBank of Maharashtra is the premier bank of Maharashtra, operating in the country of India.Registered on 16th Sept 1935 with an authorized capital of Rs 10.00 lakh and commenced business on 8th Feb 1936....
- Canara BankCanara BankCanara Bank is a state-owned financial services company in India. It was established in 1906, making it one of the oldest banks in the country. As on 2009 November, the bank had a network of 3057 branches, spread across India...
- Central Bank of IndiaCentral Bank of IndiaCentral Bank of India , a government-owned bank, is one of the oldest and largest commercial banks in India. It is based in Mumbai...
- Corporation BankCorporation BankCorporation Bank is an India-based banking company based in Mangalore, India. The bank was founded with an initial capital of Rs. 5000 , and first day’s canvassed resources of less than one USD 1, has currently 12,724 full time employees, and operates from several branches in India.The Bank is a...
- Dena BankDena BankDena Bank is one of the earliest banks in India headquartered in Mumbai.-History:* Dena Bank was founded by the family of Devkaran Nanjee under the name Devkaran Nanjee Banking Company Ltd....
- Indian BankIndian BankIndian Bank is a major Indian Commercial Bank headquartered in Chennai , India. It has 22,000 employees, 1923 branches and is one of the big public sector banks of India. It has overseas branches in Colombo, Sri Lanka, Singapore, and 229 correspondent banks in 69 countries...
- Indian Overseas BankIndian Overseas BankIndian Overseas Bank is a major bank based in Chennai , with 2018 domestic branches and six branches overseas. Indian Overseas Bank has an ISO certified inhouse Information Technology department, which has developed the software that 2018 branches use to provide online banking to customers; the...
- Oriental Bank of CommerceOriental Bank of CommerceOriental Bank of Commerce is an India-based bank in Lahore , is one of the public sector banks in India...
- Punjab National BankPunjab National BankPunjab National Bank , was founded in 1894 and is currently the second largest state-owned commercial bank in India ahead of Bank of Baroda with about 5000 branches across 764 cities. It serves over 37 million customers. The bank has been ranked 248th biggest bank in the world by the Bankers...
- Punjab and Sind Bank
- State Bank of IndiaState Bank of IndiaThe State Bank of India is the largest Indian banking and financial services company with its headquarters in Mumbai, India. It is state-owned. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest...
- Syndicate BankSyndicate BankSyndicate Bank Ltd. is one of the oldest and major commercial banks of India. At the time of its establishment, the bank was known as Canara Industrial and Banking Syndicate Limited. The bank, along with 13 major commercial banks of India, was nationalized on 19 July 1969, by the Government of...
- UCO BankUCO BankUco Bank, formerly United Commercial Bank, established in 1943 in Kolkata, is one of the oldest and major commercial bank of India. Ghanshyam Das Birla, an eminent Indian industrialist, during the Quit India movement of 1942, had conceived the idea of organizing a commercial bank with Indian...
- Union Bank of IndiaUnion Bank of IndiaUnion Bank of India is one of India's largest state-owned banks , is listed on the Forbes 2000. It has assets of USD 13.45 billion and all the bank's branches have been networked with its 1135 ATMs. Its online Telebanking facility are available to all its Core Banking Customers - individual as...
- United Bank of IndiaUnited Bank of IndiaUnited Bank of India is a state-owned financial services company headquartered in Kolkata, India. Presently the bank has a three-tier organizational setup consisting of its Head office in Kolkata, 31 Regional offices and 1600 branches spread all over India. However, its major presence is in...
- Vijaya BankVijaya Bank-History:Vijaya Bank , a medium sized bank with presence across India. It was founded on October 23, 1931 by A. B. Shetty and a few other farmers in Mangalore, Karnataka in India.. The objective was to promote banking habits, thrift and entrepreneurship among the farming community of Dakshina...
- Tamil Nadu Mercantile Bank Limited
- Subsidiaries of State Bank of IndiaState Bank of IndiaThe State Bank of India is the largest Indian banking and financial services company with its headquarters in Mumbai, India. It is state-owned. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest...
:- State Bank of Bikaner and Jaipur
- State Bank of MysoreState Bank of MysoreState Bank of Mysore is a nationalised bank in India.State Bank of Mysore was established in the year 1913 as Bank of Mysore Ltd. under the patronage of the erstwhile Govt. of Mysore, at the instance of the banking committee headed by the great Engineer-Statesman, Late Dr. Sir M.Visweswaraiah...
- State Bank of HyderabadState Bank of HyderabadState Bank of Hyderabad is an associate bank of State Bank of India , and is one of the scheduled banks in India. The Bank's Head Office is situated at Gunfoundry Area, in Hyderabad, India. SBH has over 1200 branches and about 12,800 employees. Assets are in excess of Rupees 767 billion...
- State Bank of PatialaState Bank of PatialaState Bank of Patiala is an associate bank of State Bank of India. State Bank of Patiala , originally named Patiala State Bank, and currently an associate bank of the State Bank of India, was founded on 17 November 1917...
- State Bank of TravancoreState Bank of TravancoreState Bank of Travancore , is a subsidiary of the State Bank Group and also has private share-holders. It is the premier bank of Kerala State, India, where it has 700 branches...
- State Bank of SaurashtraState Bank of SaurashtraState Bank of Saurashtra was a government-owned bank in India. It was one of the seven Associate Banks of the State Bank of India, with which it merged on 13 August 2008...
and State Bank of IndoreState Bank of IndoreState Bank of Indore was a government-owned Indian bank and the largest of State Bank of India's six associate bank subsidiaries. In October 2009, the Government of India gave its in-principle approval to a merger between State Bank of India and State Bank of Indore. On 15th July 2010 the Cabinet...
merged with SBI
Emergence of public sector banks
The Central Government entered the banking business with the nationalization of the Imperial Bank Of India in 1955. A 60% stake was taken by the Reserve Bank of IndiaReserve Bank of India
The Reserve Bank of India is the central banking institution of India and controls the monetary policy of the rupee as well as US$300.21 billion of currency reserves. The institution was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of...
and the new bank was named as the State Bank of India
State Bank of India
The State Bank of India is the largest Indian banking and financial services company with its headquarters in Mumbai, India. It is state-owned. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest...
. The seven other state banks became the subsidiaries of the new bank when nationalised on 19 July 1960. The next major nationalisation of banks took place in 1969 when the government of India, under prime minister Indira Gandhi
Indira Gandhi
Indira Priyadarshini Gandhara was an Indian politician who served as the third Prime Minister of India for three consecutive terms and a fourth term . She was assassinated by Sikh extremists...
, nationalised an additional 14 major banks. The total deposits in the banks nationalised in 1969 amounted to 50 crores. This move increased the presence of nationalised banks in India, with 84% of the total branches coming under government control.
The next round of nationalisation took place in April 1980. The government nationalised six banks. The total deposits of these banks amounted to around 200 crores. This move led to a further increase in the number of branches in the market, increasing to 91% of the total branch network of the country. The objectives behind nationalisation where:
- To break the ownership and control of banks by a few business families,
- To prevent the concentration of wealth and economic power,
- To mobilize savings from masses from all parts of the country,
- To cater to the needs of the priority sectors
Public sector banks before the economic libralisation
The share of the banking sector held by the public banks continued to grow through the 1980s, and by 1991 the public sector banks accounted for 90% of the banking sector. A year later, in March, 1992, the combined total of branches held by public sector banks was 60,646 across India, and deposits accounted for Rs. 1,10,000 crore. The majority of these banks were profitable, with only one out of the 27 public sector banks reporting a loss.Public sector banks after the reforms
After the reforms in the early 1990s, the nationalised banks saw a change in fortunes: in 1992-93, 12 of the nationalised banks reported losses, and the other seven nationalised banks reported marginal profits. 1995-96 saw a similar problem, with nationalised banks reporting a combined loss of Rs. 1160 crores. However, the early 2000s saw a reversal of this trend, such that in 2002-03 a profit of Rs. 7780 crores by the public sector banks: a trend that continued throughout the decade, with a Rs.16856 crore profit in 2008-2009.