Public Sector banks in India: SSC-CGL, SSC-CHSL, Banking

A complete article on Public Sector Banks in India from the perspective of the SSC CGL/CHSL and Banking examinations.

This article aims to delve into the concept of public Sector banks which are an integral part of the financial institutions of India from the perspective of the SSC CGL/CHSL and Banking examination.

Public Sector Banks (PSB’s) refers to the banks in India in which the government has a majority stake (more than 50%).

The shares of these banks are listed on the stock exchanges.

There are 12 public sector banks and 1 state-owned payments bank in India.

History of Public Sector Banks in India

The Imperial Bank of India was nationalized by the government in 1955 after a 60% stake was taken by the Reserve Bank of India and renamed as the State Bank of India. 7 other state banks became the subsidiaries of the State bank of India in 1959.

Indira Gandhi in 1969 nationalized 14 major banks functioning in the country to take control of the 84% of the total branches of banks in India.

By 1991, Public Sector banks accounted for 90% of the banking sector.

Various nationalized banks were merged into the state bank of India such as the bank of Saurashtra, state bank of Indore, state bank of Bikaner, state bank of Hyderabad, state bank of Mysore, state bank of Patiala, state bank of Travancore and Bharatiya Mahila Bank.

Punjab National Bank has merged with Nedungadi Bank (2003), New Bank of India(1993),Bharat Bank(1951) and Hindustan Commercial Bank (1986).

Read more: Private sector banks in India: SSC-CGL, SSC-CHSL, Banking

Nationalized Banks of India updated list 2019-2020

Bank Founding Year CEO Headquarters Tagline
Bank of India  1906 Dinabandhu Mohapatra Mumbai 87.0535% Relationships beyond banking
Bank of Baroda 1908 P.S Jayakumar Vadodara 63.74% India’s International Bank
Bank of Maharashtra  1935 A.S Rajeev Pune 87.01% One Family, One Bank
Central bank of India   1911 Pallav Mohapatra Mumbai 88.02% Central to you since 1911
Indian Overseas Bank 1937 Shri Karnam Sekar Chennai 91% Good People to grow with
Punjab and Sindh Bank 1908 Shri S Harisankar Delhi 79.62% Where service is a way of life
State Bank of India  1806 Arijit Basu Mumbai 61% 1)Pure Banking, Nothing else

2)With you all the way

3)The nation banks on us

UCO Bank 1943 Atul Kumar Goel Kolkata 93.29% Honors your trust
India Post Payments Bank 2018 Suresh Sethi New Delhi 100% Your bank is your gate
Allahabad Bank 1865 SS Mallikarjuna Rao Kolkata 92.01% A tradition of trust
Andhra Bank 1923 J Packirisamy Hyderabad 87.81% Where India Banks
Canara Bank 1906 Sankara Narayanan Bengaluru 70.62% Together we can
Corporation Bank 1906 P.V Bharathi Mangalore 93.49% A premiere public-sector bank
Indian Bank 1907 Padmaja Chunduru Chennai  79.62% Your tech- friendly bank
Oriental Bank of Commerce 1943 Mukesh Kumar Jain Gurugram 87.58% Where every individual is committed 
Punjab National Bank 1894 Sunil Mehta New Delhi 75.41% The bank you can bank upon
Syndicate Bank 1925 Mrutyunjay Mahapatra Manipal 78.48% Your faithful and friendly financial partner
Union Bank of India 1919 Rajkiran Rai G. Mumbai 74.27% Good people to bank with
United Bank of India 1950 Ashok Kumar Pradhan Kolkata 96.83% The bank that begins with ‘U’
Vijaya Bank 1931 R.A Sankara Narayan Bengaluru 68.77% A friend you can bank upon
Bharatiya Mahila Bank 2013 Delhi Empowering Women

Vijaya Bank and Dena Bank were merged into the bank of Baroda in 2018 

IDBI bank became a private bank with effect from January 2019.

State bank of India is the largest lender in India.

Allahabad bank was the first joint stock bank in India.

Union Bank of India launched the first talking ATM for differently-able people.

Central Bank of India was the first public bank to introduce the concept of a credit card

Punjab national Bank (PNB) was the first bank to be started solely with Indian investment.

Bank of India was the first bank to open a branch overseas. It opened a branch in London in 1946.

The first Indian commercial bank owned by Indians is the Central Bank of India.

Lala Lajpat rai was a founder of Punjab National Bank (PNB).

The first bank to be ISO certified was the Canara Bank.

The savings account system was introduced in India by Presidency Bank in 1833 and the cheque system was introduced by Bengal Bank 1784.

ICICI bank was the first bank to introduce Internet Banking.

The first ATM was opened by HSBC in 1987 in Mumbai.

State Bank of India has the highest number of overseas branches.

Mahatma Gandhi inaugurated the Union Bank of India in 1919.

Mergers in 2019

Read more: Population Census Of India 2019 – SSC-CGL, CHSL & Banking

Nirmala Sitharaman, the Finance Minister has announced the following mergers in 2019 to boost economic growth:

  1. Indian bank will be merged with Allahabad bank
  2. Punjab National Bank, Oriental Bank of India and United Bank will be merged 
  3. Union Bank of India, Andhra Bank and Corporation Bank will be merged
  4. Canara Bank and Syndicate bank will be merged 

Expected merger of banks in the coming financial year

Bank -1  Share of the Gov. in Bank-1 Bank-2 Share of the Gov. in Bank-2  Bank 3 Share of the Gov. in Bank -3  Year
Indian Bank 79.62% Allahabad Bank 92.01%
Union Bank 74.27% Andhra Bank 87.81% Corporation Bank 93.49%
Canara Bank 70.62% Syndicate Bank 78.48%
Punjab National Bank 75.41% Oriental Bank of Commerce 87.58% United Bank of India 96.83%

RBI fined 4 banks PNB (50Lakhs), Allahabad Bank (50Lakhs), UCO Bank (50Lakhs), and Corporation Bank(25Lakhs) for flouting KYC norms in 2019.

RBI fined Corporation Bank(1 cr) ,Bank of Baroda(1.5 cr),Indian Overseas Bank(1.5 cr),Bank of Maharashtra(1.5 cr)  , Union Bank of India(1.5 cr), Allahabad Bank(1.5 cr) and Bank of India(1.5 cr)  for flouting account opening norms and not complying with cyber security norms in 2019.

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