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).
Nationalized Banks of India updated list 2019-2020
|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
Nirmala Sitharaman, the Finance Minister has announced the following mergers in 2019 to boost economic growth:
- Indian bank will be merged with Allahabad bank
- Punjab National Bank, Oriental Bank of India and United Bank will be merged
- Union Bank of India, Andhra Bank and Corporation Bank will be merged
- 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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