Nationalized Banks: List of Government Banks in India

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    In today's world, the people can park there hard earned money in banks and financial institutions without worrying much about the safety of the invested funds. We all are enjoying the full benefits by utilizing the various schemes offered by various banking institutions present in the country which our forefathers were unheard of. In the earlier years, there was no regular system which permitted people to safeguard the money and mostly used to treasure the money in their own houses.

    Nationalized Banks: List of Government Banks in India

    The concept of the banking system in India was developed during the British era. The British East India Company has to its credit establishing three banks in India namely Bank of Bengal during 1809, Bank of Bombay in 1840 and Bank of Madras in 1843. All these three banks were amalgamated and the Imperial Bank came into existence which was further taken over by SBI during 1955.

    Now let's understand the concept of a bank.

    What is a Bank?

    A Bank is a financial institution which is licensed to receive the deposits and lend loans to the needy. The banks also perform other functions in the form of currency exchange, wealth management, financial service, safe deposit boxes and so on.

    The main function of a bank apart from receiving deposits and lending money to businesses and individuals involves disbursing payments, safeguarding money and investing the funds in securities.

    Categorization of Banking Sector

    In India, the banking sector is categorized into two broad categories namely scheduled and non-scheduled banks. The scheduled banks come under the second schedule of the Reserve Bank of India Act of 1934.

    The list of scheduled banks in India are further categorized into

    • Nationalized Banks
    • Foreign Banks
    • Regional Rural Banks
    • State Bank of India and its associates and
    • Other Private Sector Banks

    What is a Nationalized Bank?

    Nationalization refers to the transfer of public sector assets to be operated or owned by the state or central government. In India, the banks which were previously functioning under private sector were transferred to the public sector by the act of nationalization and thus the nationalized banks came into existence.

    The history of banking in India states that the post-independence, the Government of India initiated various measures to play an active role in the economic development of the nation which resulted in the establishment of the Reserve Bank of India in April 1935 and later nationalized the same during 1949 under the terms of the Reserve Bank of India Act of 1948 and another measure is the nationalization of banks in India.

    Post-independence, the Indian government adopted a planned economic development for the betterment of the country. The government of India under the leadership of the then Prime Minister Indira Gandhi issued an ordinance to nationalize 14 largest commercial banks in India with effect from July 19, 1969, under the regulatory authority of the Reserve Bank of India. These 14 banks contained up to 85 percent of bank deposits in the country and most of them were privately owned. During 1980, 6 more commercial banks followed the suit and came under nationalized cover. Till the 1990s, their growth grew at a snail's pace of around 4% annually.

    During early 1990's, the government of India adopted the policy of liberalization and licensed a small number of private banks in the country which helped for the rapid growth of the economy of India.

    Reasons for the Nationalization of Banks

    • For Social Welfare
    • For Developing Banking Habits
    • For Expansion of Banking Sector
    • For Controlling Private Monopolies
    • To Reduce Regional Imbalance
    • For Prioritizing Sector Lending

    List of nationalized banks in India

    The Central Bank of India - RBI, in its official website has listed the following 19 banks as nationalized banks.

    Bank Names Year of Nationalization
    Andhra Bank1980
    Allahabad Bank1969
    Bank of Baroda1969
    Bank of India1969
    Bank of Maharashtra1969
    Canara Bank1969
    Central Bank of India1969
    Corporation Bank1980
    Dena Bank1969
    Indian Bank1969
    Indian Overseas Bank1969
    Oriental Bank of Commerce1980
    Punjab & Sind Bank1969
    Punjab National Bank1969
    Syndicate Bank1969
    UCO Bank1969
    Union Bank of India1969
    United Bank of India1969
    Vijaya Bank1969

    The major nationalized banks in India are State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BOB), Canara Bank, Union Bank of India and so on. 

    State Bank of India

    The State Bank of India is popularly known as SBI was formed when the Bank of Madras merged into two other presidency banks - the Bank of Calcutta and the Bank of Bombay in January 1921, to form the Imperial Bank of India. The imperial bank of India was later renamed as the State Bank of India on July 1, 1955, when the government of India acquired 60% stake in Imperial Bank of India.

    The State Bank of India is the biggest public-sector based bank in India with a market share of 23% in terms of assets, apart from holding a share of 1/4th in the total loans and deposits markets.

    The State Bank of India is not included under the list of nationalized banks as it was already a state-owned financial institution in the country at the time of its inception.

    Its headquarters is located in Mumbai, the financial capital of India.

    The State Bank of India's Net Sales Turnover for March 2018 stood at Rs 2,20,499.31 crores as against Rs 1,75,518.24 crores during March 2017, up by 25.63%.

    The bank's Non-banking subsidiaries in India include:

    • SBI Capital Markets Ltd
    • SBI Funds Management Pvt Ltd
    • SBI Global Factors Ltd
    • SBI Cards & Payments Services Pvt Ltd
    • SBI DFHI Ltd
    • SBI General Insurance Company Limited
    • SBI Pension Funds Pvt Ltd

    Andhra Bank

    Andhra Bank is one of the medium-sized public-sector bank present in India which started its operations in the year 1923. The government of India owns 63.97% of the bank's stake in the form of share capital. It has a network of 2803 branches in the country. The total income of the bank touched Rs 20,346.60 crore in March 2018.

    The head office of Andhra Bank is situated in Hyderabad.

    Allahabad Bank

    The Allahabad Bank was initiated during 1865, in Allahabad by a group of Europeans. Its headquarters is located in Kolkata. it is one of the oldest joint stock bank present in India, withstanding turbulent times since inception. The bank's business touched INR 3.8 trillion during 2017-2018. It has more than 3245 branches spread across the country.

    The headquarters of Allahabad Bank is situated in Kolkata.

    Bank of Baroda

    The Bank of Baroda was founded during pre-independence days under the leadership of Maharaja of Baroda, Maharaja Sayajirao Gaekwad III during 1908. The Bank of Baroda was nationalized during 1969 by the government of India. The bank's total assets crossed Rs 3.58 trillion making it the second biggest Indian bank based on the assets.

    Its headquarters is situated in Vadodara (which was previously known as Baroda), Gujarat.

    The bank's corporate office is in Mumbai, Maharashtra.

    Bank of India

    The Bank of India came into existence during 1906 when a group of illustrious businessmen came together to start a bank. The bank has a network of 5100 branches spread across the length and breadth of India as on January 2017. The bank's headquarters is situated in Mumbai. The bank was started with an initial paid-up capital of Rs 5 million ($75,000) and just 50 employees with one office in Mumbai.

    Its headquarters is located in Nariman Point, Mumbai.

    Bank of Maharashtra

    Bank of Maharashtra has the largest network of branches in the state of Maharashtra. The bank has an estimated 15 million customers across the globe. The bank was started in the year 1935 in Pune by V.G. Kale and D.K. Sathe. It obtained the status of Schedule Bank during 1944. The bank gained autonomous status in the year 1998 which has led to the reduction of interference of government bureaucracy in its internal affairs and the decision-making process.

    Bank of Maharashtra's head office is located in Pune. During 2016, the bank's total business crossed Rs 2.50 lakh crore.

    Canara Bank

    Canara Hindu Permanent Fund was established by Ammembal Subba Rao Pai in Mangalore during 1906. It was later renamed as Canara Bank Limited in the year 1910 during its incorporation. The bank is one of the oldest public sector banks in the country. The government of India nationalized Canara bank during 1969 making it one of the biggest public sector banks owned by the government of India in the country.

    Its head office is located in Bengaluru, Karnataka.

    Central Bank of India

    The Central Bank of India was established during 1911, by Sir Sorabji Pochkhanawala. The bank has a network of 4715 branches and 5319 ATM's spread across the country. The bank is considered to be the first commercial Indian Bank which was completely possessed and handled by Indians. The bank has many satellite offices which are spread across the length and breadth of the country.

    Central Bank of India's headquarters is situated in Nariman Point, Mumbai.

    Corporation Bank

    Corporation Bank is headquartered in Mangalore, India. The Corporation Bank was started by Khan Bahadur Haji Abdullah Haji Kasim Saheb Bahadur, considered as the founder president. The bank began its journey in 1906, with an initial seed capital of Rs 5,000. It is one of the oldest banks in India. The bank to its distinction has a structure of 2440 absolutely automated Core Banking Solutions (CBS) branches expanded across the country. The bank is one of the prominent public sector banks in India.

    Dena Bank

    The Dena Bank's revenue stood at INR 10645.73 crores in 2016. The bank was formed by the family of Devkaran Nanjee in the year 1938 under the name Devkaran Nanjee Banking Company Ltd. The company was renamed as Dena Bank in 1939 during the time of its incorporation as a public company. The bank to its reputation had launched a bond issue during November 1996, to the tune of Rs 92.13 crores. It also made a maiden public issue during the same year worth Rs 180 crore in India.

    The total number of employees of the bank as on 2016 stands at 13,906.

    For the first time in India, the bank issued a credit card in the rural sector in India under the name 'Dena Krishi Sakh Patra' (DKSP).

    It is headquartered in Mumbai, Maharashtra.

    Indian Bank

    The Indian Bank came into existence during 1907. It is currently serving the customers as a nationalized bank in India. The bank's business rose and reached Rs 3.64 lakh crores during March 2018. The bank was successful in securing the Information Systems & Security processes certified with ISO 27001:2013. The deposits of the Indian Bank swelled up to the tune of Rs 2,08,294.22 crore during March 2018 as against Rs 1,82,509.28 crore in March 2017, up by 14.12 percent.

    Indian Overseas Bank

    The Indian Overseas Bank has a network of more than 3400 domestic branches spread across length and breadth of the country. The bank was formed by Thiru M. Chidambaram Chettyar during the year 1937 with an aim to encourage foreign exchange operations and overseas banking transactions in the country.

    Oriental Bank of Commerce

    The Oriental Bank of Commerce was established in 1943, in Lahore before independence. The bank was established by Rai Bahadur Lala Ji Sohan Lala Ji. The Oriental bank's net income touched the mark of Rs 20181.25 crore as on March 2018 which made it occupy the seventh position amongst the largest public sector bank in the country.

    Punjab and Sind Bank

    The Punjab and Sind Bank's was established in 1908 and its headquarters is situated in New Delhi, India. The bank has 1466 branches in India. The total business of the bank touched Rs 1,51,511 crore in the year 2014-2015.

    Punjab National Bank

    The Punjab National Bank famously known as PNB and it is a state-owned corporation which was established during 1894. The bank has a special distinction of having been commenced solely with an Indian capital. The bank has witnessed major changes in the banking sector apart from withstanding turbulent testing times and has survived successfully to see the present day.

    The Punjab National Bank was nationalized by the government of India during July 1969.

    The Punjab National Bank head office is situated in New Delhi.

    Syndicate Bank

    Syndicate Bank started its service during 1925 in Udupi situated in Dakshin Kannada district in the state of Karnataka. The bank was started with an initial capital of just Rs 8000. The bank's headquarters is located in the university town of Manipal, Karnataka. The bank has eight zonal offices across India with keen focus to improvise its administration and business.

    UCO Bank

    The UCO Bank was established during 1943 by Ghanshyam Das Birla. It was earlier known as United Commercial Bank. The bank has more than 4000 service units and 49 zonal offices spread across India as on March 2017. Its headquarters is located in BTM Sarani, Kolkata. The bank's profit for the year ending March 2018 declined to a new low and it reported a loss of Rs 4426.95 crore.

    Union Bank of India

    The Union Bank of India was founded in the year 1919 before India attained independence and it was inaugurated by Mahatma Gandhi. The government of India nationalized the Union Bank of India in 1969 in a bid to review the economic scenario of the country.

    The headquarters of the Union Bank of India is located in Mumbai, the financial capital of India.

    The bank reported a surge in its total income which stood at Rs 37737.87 crore during March 2018 as against Rs 37624.58 crore during March 2017.

    United Bank of India

    The United Bank of India's headquarters is situated in Kolkata. The bank came into existence after the merger of four Bengali Banks in 1950, namely Comilla Banking Corporation, Bengal Central Bank, Comilla Union Bank and Hooghly Bank. The bank's net sales were recorded at Rs 9,427.91 crores during March 2017.

    Vijaya Bank

    Vijaya Bank was established in 1931 in Mangalore, Karnataka. The bank was established on the auspicious day of Vijayadashami Day and hence the bank was named as 'Vijaya Bank'. The bank has a network of 2031 branches as on March 2017. It has 4000 customer touch points spread across the length and breadth of the country.

    The bank's total business is more than Rs 2,29,000 crores as on March 2017.

    Read more about: banks nationalized banks
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