Public Sector Undertakings (Banks) are a major type of government owned banks in India, where a majority stake (i.e. more than 50%) is held by the

Ministry of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance. Lists of current ministries of finance Named "Ministry" * Ministry of Finance (Afghanistan) * Ministry of Finance and Ec ...

of the

Government of India The Government of India (ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the national government of the Republic of India, a federal democracy located in South Asia, c ...

or State Ministry of Finance of various

State Governments of India State governments in India are the governments ruling over 28 states and 8 union territories of India and the head of the Council of Ministers in a state is the Chief Minister. Power is divided between the Union government and state governmen ...

. The shares of these government-owned-banks are listed on stock exchanges. Their main objective is social welfare

History

Emergence of public sector banks

The Central Government entered the banking business with the nationalization of the

Imperial Bank of India The Imperial Bank of India (IBI) was one of the oldest and the largest commercial bank of the Indian subcontinent, and was subsequently transformed into the State Bank of India in 1955. Initially, as per its royal charter, it acted as the cen ...

in 1955. A 60% stake was taken by the

Reserve Bank of India The Reserve Bank of India, chiefly known as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system. It is under the ownership of Ministry of Finance, Government of India. It is responsible for ...

and the new bank was named

State Bank of India State Bank of India (SBI) is an Indian multinational public sector bank and financial services statutory body headquartered in Mumbai, Maharashtra. SBI is the 49th largest bank in the world by total assets and ranked 221st in the ''Fortune ...

. The seven other state banks became subsidiaries of the new bank in 1959 when the
State Bank of India (Subsidiary Banks) Act, 1959
' was passed by the

Union government The Government of India ( ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the national government of the Republic of India, a federal democracy located in South Asia, ...

. The next major government intervention in banking took place on 19 July 1969 when the Indira government 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.

Before the economic liberalisation

The share of the banking sector held by the public banks continued to grow through the 1980s, and by 1991 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 ₹1,10,000 crore. The majority of these banks was profitable, with only one out of the 21 public sector banks reporting a loss.

Liberalisation in the 2000s

The nationalised banks reported a combined loss of ₹1160 crores. However, the early 2000s saw a reversal of this trend, such that in 2002-03 a profit of ₹7780 crores by the public sector banks: a trend that continued throughout the decade, with a ₹16856 crore profit in 2008–2009.

Mergers

The consolidation of SBI-associated banks started first by State Bank of India merging its subsidiary State Bank of Saurashtra with itself on 13 August 2008. Thereafter it merged State Bank of Indore with itself on August 27, 2010. The remaining subsidiaries, namely the State Bank of Bikaner & Jaipur,

State Bank of Hyderabad State Bank of Hyderabad (SBH) was a regional bank in Hyderabad, with headquarters at Gunfoundry, Abids, Hyderabad, Telangana. Founded by the 7th Nizam of Hyderabad State, Mir Osman Ali Khan, it is now one of the five associate banks of State Ba ...

State Bank of Mysore State Bank of Mysore was a Public Sector bank in India, with headquarters at Bangalore. It was one of the five associate banks of State Bank of India, all of which were consolidated with the State Bank of India with effect from 1 April 2017. S ...

, State Bank of Patiala and

State Bank of Travancore State Bank of Travancore (SBT) was a major Indian bank headquartered in Thiruvananthapuram, Kerala, and was a major associate of State Bank of India. SBT was a subsidiary of the State Bank Group, but also had private share-holders. It was ...

, and

Bharatiya Mahila Bank Bharatiya Mahila Bank (BMB; ) was a fully owned subsidiary of State Bank of India based in Mumbai, India. Former Indian Prime Minister Manmohan Singh inaugurated the system on 19 November 2013 on the occasion of the 96th birth anniversary of fo ...

were merged with State Bank of India with effect from 1 April 2017.

Vijaya Bank Vijaya Bank was a PSU bank which was merged with Bank of Baroda on 1 April 2019 with its head office in Bangalore, Karnataka, India. It was one of the nationalised banks in India. The bank offered a wide range of financial products and service ...

and

Dena Bank Dena Bank was a government-owned bank that in 2019 merged with Bank of Baroda. It was headquartered in Mumbai and had 1,874 branches. The bank was founded in 1938 as a privately owned Bank. In 1969 the Government of India nationalized ''Dena Ban ...

were merged into Bank of Baroda in 2018.

IDBI Bank The IDBI Bank Limited (IDBI Bank or IDBI) is a development finance institution under the ownership of Life Insurance Corporation of India and Government of India. It was established in 1964 as Industrial Development Bank of India, a developmen ...

was categorised as a private bank with effect from January 2019. On 30 August 2019, Finance Minister

Nirmala Sitharaman Nirmala Sitharaman (born 18 August 1959) is an Indian economist and politician serving as the Minister of Finance and Corporate Affairs of India since 2019. She is a member of the Rajya Sabha, upper house of the Indian Parliament, since 2014. ...

announced the government's plan for further consolidation of public sector banks:

Indian Bank Indian Bank is an Indian public sector bank, established in 1907 and headquartered in Chennai. It serves over 100 million customers with 39,734 employees, 5,721 branches with 5,428 ATMs and Cash deposit machines. Total business of the bank has ...

's merger with

Allahabad Bank Allahabad Bank was an Indian nationalised bank with its headquarters in Kolkata, India. Founded in Allahabad in 1865 and nationalized by the government of India in 1969, the bank provided banking and financial services for 155 years until it wa ...

(anchor bank -

);

Punjab National Bank Punjab National Bank (abbreviated as PNB) is an Indian public sector bank headquartered in Delhi. The bank was founded in May 1894 and is the second largest government-owned bank in India, both in terms of its business volumes and its network ...

's merger with

Oriental Bank of Commerce Oriental Bank of Commerce (OBC) was an Indian public sector bank headquartered at Gurgaon, Haryana. It had 2390 branches and 2625 ATMs across India. In April 2020, the bank along with United Bank of India has been merged with Punjab National ...

and United Bank (anchor bank -

);

Union Bank of India Union Bank of India, commonly referred to as Union Bank or UBI, is an Indian public sector bank headquartered in Mumbai. It has 120+ million customers and a total business of US$106 billion. After the amalgamation with Corporation Bank and A ...

's merger with

Andhra Bank Andhra Bank was a medium-sized public sector bank (PSB) of India, with a network of 2885 branches, 4 extension counters, 38 satellite offices and 3798 automated teller machines (ATMs) as of 31 March 2019. During 2011–12, the bank entered t ...

and

Corporation Bank Corporation Bank was a public-sector banking company headquartered in Mangalore, India. The bank had a pan-Indian presence. Presently, the bank has a network of 2,432 fully automated CBS branches, 3,040 ATMs, and 4,724 branchless banking units ...

(anchor bank -

); and Canara Bank's merger with

Syndicate Bank Syndicate Bank was one of the oldest and major commercial banks of India. It was founded by Upendra Ananth Pai, T. M. A. Pai and Vaman Srinivas Kudva. At the time of its establishment, the bank was known as Canara Industrial and Banking Syndi ...

(anchor bank - Canara Bank). The mergers took effect from 1 April 2020.

Central Public Sector Undertakings (Banks)

; Nationalized Banks (Government Shareholding %, as at end-March 2022) #

(57.59%) #

Bank of Baroda Bank of Baroda (BOB or BoB) is an Indian public sector bank headquartered in Vadodara, Gujarat. It is the second largest public sector bank in India after State Bank of India, with 132 million customers, a total business of US$218 billion, a ...

(63.97%) # Canara Bank (62.93%) #

(73.15%) #

(79.86%) #

(83.49%) #

Bank of India Bank of India (BOI) is an Indian public sector bank headquartered in Bandra Kurla Complex, Mumbai. Founded in 1906, it has been government-owned since nationalisation in 1969. BoI is a founder member of SWIFT (Society for Worldwide Inter B ...

(81.41%) #

Central Bank of India Central Bank of India (CBI) is an Indian public sector bank based in Mumbai. Despite its name, it is not the central bank of India; The Indian central bank is the Reserve Bank of India. History The Central Bank of India was established on ...

(93.08%) #

Bank of Maharashtra Bank of Maharashtra is an Indian public sector bank headquartered in Pune. The bank had 29 million customers across the country with 2022 branches as of March 2022. It has the largest network of branches of any nationalised bank in the state ...

(90.90%) #

UCO Bank UCO Bank, formerly United Commercial Bank, is an Indian public sector bank, established in 1943 in Kolkata. During FY 2020–21, its total business was 3.24 lakh crore. Based on 2020 data, it is ranked 80 on the Fortune India 500 list. UCO B ...

(95.39%) #

Indian Overseas Bank Indian Overseas Bank (IOB) is an Indian public sector bank based in Chennai. It has about 3,214 domestic branches, about 4 foreign branches and representative office. Founded in February 1937 by M. Ct. M. Chidambaram Chettyar with twin object ...

(96.38%) # Punjab and Sind Bank (98.25%) Presently there are 43 Regional Rural Banks in India Since 1 April 2020 Andhra Pradesh * Andhra Pragathi Grameena Bank *Chaitanya Godavari Gramin Bank *Saptagiri Gramin Bank Arunachal Pradesh *Arunachal Pradesh Rural Bank Assam *

Assam Gramin Vikash Bank Assam Gramin Vikash Bank is the only regional rural bank of Assam, India. It is under the ownership of Ministry of Finance , Government of India. The bank was formally launched on 12 January 2006 after amalgamation of Pragjyotish Gaonlia Bank, L ...

Bihar * Dakshin Bihar Gramin Bank *

Uttar Bihar Gramin Bank Uttar Bihar Gramin Bank is a regional rural bank (RRB) in the State of Bihar, India. It is under the ownership of Ministry of Finance, Government of India. It is one of the largest regional rural banks in India in terms of branch network, staff ...

Chhattisgarh *Chhattisgarh Rajya Gramin Bank Gujarat *Baroda Gujarat Gramin Bank *Saurashtra Gramin Bank Haryana *Sarva Haryana Gramin Bank Himachal Pradesh *Himachal Pradesh Gramin Bank Jammu and Kashmir *J&K Grameen Bank *Ellaquai Dehati Bank Jharkhand *

Jharkhand Rajya Gramin Bank Jharkhand Rajya Gramin Bank (JRGB) is a Regional Rural Bank (RRB_). The bank was established on 1 April 2019 with the amalgamation of the erstwhile V''ananchal Gramin Bank'' and erstwhile J''harkhand Gramin Bank'' under the provisions of RRB A ...

Karnataka *Karnataka Gramin Bank *

Karnataka Vikas Grameena Bank The Karnataka Vikas Grameena Bank (KVGB), an Indian Regional Rural Bank sponsored by Canara Bank. It is under the ownership of Ministry of Finance (India), Ministry of Finance , Government of India. The bank provides retail banking services to ...

Kerala *

Kerala Gramin Bank Kerala Gramin Bank (KGB) is a Regional Rural Bank (RRB), headquartered at Malappuram in Kerala, India. The bank is jointly owned by Central and State Governments & sponsored by Canara Bank. It is under the ownership of Ministry of Finance , ...

Madhya Pradesh *

Madhyanchal Gramin Bank Madhyanchal Gramin Bank is a regional rural bank in India. It is under the ownership of Ministry of Finance , Government of India. It was formed by merging three rural banks in the state of Madhya Pradesh in central India namely Madhya Bharat ...

*Madhya Pradesh Gramin Bank Maharashtra *

Maharashtra Gramin Bank Maharashtra Gramin Bank is an Indian Regional Rural Bank (RRB) or Gramin bank, in the State of Maharashtra with its head office is in Aurangabad. It is one of the 43 Gramin banks in India supported by the government that aim to bring banking ...

*Vidharbha Konkan Gramin Bank Manipur *Manipur Rural Bank Meghalaya *Meghalaya Rural Bank Mizoram *

Mizoram Rural Bank Mizoram Rural Bank (MRB) is a Regional Rural Bank in Mizoram sponsored by State Bank of India.It is under the ownership of Ministry of Finance , Government of India. History It was established on 27 September 1983 under the Regional Rural B ...

Nagaland *Nagaland Rural Bank Odisha *

Odisha Gramya Bank Odisha Gramya Bank (OGB) ( or, ଓଡ଼ିଶା ଗ୍ରାମ୍ୟ ବ୍ୟାଙ୍କ) is a Regional Rural Bank established on 7 January 2013 with the amalgamation of ''Neelachala Gramya Bank'' (Odia: ନୀଳାଚଳ ଗ୍ରାମ� ...

Utkal Grameen Bank Utkal Grameen Bank (UGB) ( or, ଉତ୍କଳ ଗ୍ରାମୀଣ ବ୍ୟାଙ୍କ) is a Regional Rural Bank established on 1 November 2012 with the merger of ''Rushikulya Gramya Bank'' and ''Utkal Gramya Bank'' in terms of provisions o ...

Puducherry * Puduvai Bharathiar Grama Bank Punjab *Punjab Gramin Bank Rajasthan *Baroda Rajasthan Kshetriya Gramin Bank *Rajasthan Marudhara Gramin Bank Tamil Nadu *

Tamil Nadu Grama Bank Tamil Nadu Grama Bank (TNGB) is a regional rural bank headquartered at Salem in Tamil Nadu, India. The bank is jointly owned by the central and state governments and sponsored by the Indian Bank. It is under the ownership of the ...

Telangana *Telangana Grameena Bank *

Andhra Pradesh Grameena Vikas Bank Andhra Pradesh Grameena Vikas Bank is an Indian Regional Rural Bank headquartered in Warangal, India. It was established in 2006 as a Regional Rural Bank as per Regional Rural Banks Act of 1976. By amalgamation, on 31 March 2006, of the followi ...

Tripura * Tripura Gramin Bank Uttar Pradesh * Aryavart Bank * Prathama UP Gramin Bank *Baroda UP Bank Uttarakhand * Uttarakhand Gramin Bank West Bengal * Paschim Banga Gramin Bank * Bangiya Gramin Vikash Bank * Uttarbanga Kshetriya Gramin Bank

References

External links

WEBSITES OF BANKS IN INDIA (rbi.org.in)

What are the different types of banks in India
{{Banking in India * Lists of banks in India

Banks A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Becaus ...

India government-related lists

History

Emergence of public sector banks

Before the economic liberalisation

Liberalisation in the 2000s

Mergers

Central Public Sector Undertakings (Banks)

See also

References

External links