June 25, 2022

The financial institution is a monetary institute that’s approved to obtain cash and supply loans to its clients. The banking system in India sprang again within the British interval. Initially, the financial institution supplied simply the fundamental companies, however now you possibly can avail quite a few different companies such as-

  • Wealth administration
  • Forex change
  • Financial savings account
  • Monetary companies
  • Safeguarding cash
  • Investing the deposits in funds

It was on July 14, 1969, when Financial institution Nationalized Day got here into existence. It was the day when the federal government of India nationalized 14 banks. Largely all of the nationalized banks in India are referred to as Public sector banks.

Nationalization is the method during which authorities takes over the personal property and will get them underneath public possession. Until 2017 there have been 27 public sector banks in India, however after the amalgamation of the banks as per the announcement of the Finance Minister of India Nirmala Sitharaman, there are solely 19 nationalized banks.

Listing of Nationalized Banks in India

Immediately we’re going to talk about the record of Nationalized Banks (Authorities Banks) in India.

Varieties of Banks in India

Right here is the classification of kinds of banks in India-

1. Business Banks:

These banks are additional categorized into 4 classes:

  • Personal Sector Banks
  • Public Sector Banks (or Nationalized Banks)
  • Regional rural banks
  • Overseas banks

2. Small Finance Banks

3. Funds Banks

4. Co-operative Banks

Additionally Learn: Completely different Varieties of Banks in India

What’s a Nationalized Financial institution?

They’re the general public sector property which can be owned or managed by the state or central authorities. Nationalized banks got here into incidence when beforehand the banks that got here underneath personal sector banks had been shifted to the general public sector by the act of nationalization.

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Publish-independence, the federal government of India took quite a few steps to enhance the nation’s financial growth, and one of many main steps they took was establishing RBI in April 1935. Later in 1948, underneath the phrases of the RBI Act, they gave discover to nationalized the banks after which in 1949.

It took lots of years, after which in 1969, after the ordinance of then Prime Minister Indira Gandhi, 14 largest industrial banks in India had been shaped underneath the regulatory authority of RBI.

These banks had greater than 85% share of the whole financial institution deposits within the nation, after which in 1980, 6 extra banks had been commercialized. Which means there are, in whole, 19 banks which can be to be included within the record of nationalized banks in India. Immediately, nationalized banks have greater than 50% stake in all the banking sector.

Causes for the nationalization of the banks

The explanation why banks had been nationalized in India are-

  • Their main function was social welfare as they wished to supply monetary companies to assist people and different sectors in order that they may develop, and together with them, the nation’s financial system would additionally get higher
  • One other issue was for creating banking habits amongst individuals. As earlier than that, individuals didn’t have the behavior of depositing cash within the financial institution or getting different monetary options from the financial institution
  • Growth of banks was one more reason that the federal government of India deliberate to nationalize the banks
  • The very important issue was to limit personal monopoly. There have been lots of personal banks within the financial institution that would management the market and supply loans at greater charges and provides much less curiosity on financial savings. To avert this type of state of affairs, an inventory of presidency banks in India was ready, and the banks had been nationalized
  • Banks had been nationalized in order that the regional imbalance might be lessened
  • But one more reason was that they wished to prioritize sector lending.

Additionally Learn: Listing of Banks in India

Listing of Nationalized Banks in India

Here’s a desk containing all of the Nationalized Banks In India:

Nationalized Banks Headquarter Tag Line
1. Punjab Nationwide Financial institution ( With the merger of Oriental Financial institution Of Commerce and United Financial institution Of India) New Delhi The identify you possibly can Financial institution Upon
2. Indian Financial institution( With Merger of Allahabad Financial institution) Chennai Your Tech-friendly financial institution
3. State Financial institution of India Mumbai With you all the best way, Pure Banking Nothing Else, The Nation’s banks on us
4. Canara Financial institution( With Merger Of Syndicate Financial institution) Bangalore Collectively we will
5. Union Financial institution of India( With Merger Of Andhra Financial institution and Company Financial institution) Mumbai Good individuals to financial institution with
6. Indian Abroad financial institution Chennai Good individuals to develop with
7. UCO Financial institution Kolkata Honors Your Belief
8. Financial institution of Maharashtra Pune One Household One Financial institution
9. Punjab and Sind Financial institution Rajendra Place, New Delhi The place Service Is A Means Of Life
10. Financial institution of India Mumbai Relationships past Banking
11. Central Financial institution of India Mumbai Central To you Since 1911, Construct A Higher Life Round Us
12. Financial institution of Baroda Gujarat India’s Worldwide Financial institution
See also  Checklist of Banks in India (2022)

Right here is the record of all of the authorities banks in India and a few essential details about them-

1. Punjab Nationwide Financial institution

Punjab National Bank | List of Nationalized Banks in India

It’s the preeminent Swadeshi financial institution that was instituted on April 12, 1895, in Lahore. PNB was nationalized in 1969 and is headquartered in Delhi. It’s a state-owned company financial institution that began its operations with Rs 2 lac and dealing capital of Rs.20,000.

They render a number of monetary companies corresponding to financial savings and present accounts, all kinds of loans, debit and bank cards, Funding, buying and selling, and far more. They’ve a buyer base of 180 million clients, 10910 branches, and greater than 13000 ATMs throughout the nation.

2. Indian Financial institution

Indian Bank | List of Government Banks in India

This financial institution was integrated on August 15, 1907, and at this time it’s serving clients as a authorities financial institution in India. It’s headquartered in Chennai, and its present CEO is Padmaja Chunduru. Indian financial institution has two subsidiary firms which can be IndBank Housing Ltd and IndBank Service provider Banking Providers Ltd.

They’re serving greater than 100 million clients and have 20924 workers. Indian financial institution has greater than 6000 branches and 5428 ATMs unfold throughout the nation. They provide numerous banking companies to their clients corresponding to debit and bank cards, web banking, loans, deposit accounts,  Funding, and extra.

Additionally Learn: Listing of Personal Banks in India

3. State Financial institution of India

State Bank Of India | List of Nationalized Banks in India

This financial institution is normally referred to as SBI, and it was often known as the Imperial Financial institution of India. Later it was renamed and nationalized on July 1, 1955, and the identify modified to State Financial institution of India. That is the most important public-sector financial institution in India, with a complete of 1/4th share within the whole deposits and loans markets.

This financial institution was made after the merger of two banks that’s Financial institution of Calcutta and the Financial institution of Bombay. They’ve a historical past of 200 years with 209567 workers. SBI has 22141 branches and 58555 ATMs nationwide.

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4. Financial institution of Baroda

Bank Of Baroda | List of Nationalized Banks in India

It’s an Indian state-owned Worldwide banking and cash companies financial institution. They’re headquartered in Vadodara, Gujarat. This financial institution was based throughout pre-independence days in 1908. Later it was nationalized in 1969 by the federal government of India. They’re the second greatest Indian financial institution based mostly on whole property.

The main companies they provide are private banking, enterprise banking, on-line banking, company banking, all sort of loans and funding companies, and extra. Financial institution of Baroda serves greater than 132 million clients and has 8230 whole branches and 13400 ATMs unfold throughout the nation.

5. Financial institution of India

Bank Of India | List of Government Banks in India

It was established on September 7, 1906, by a gaggle of businessmen in Mumbai. It was nationalized in 1969 with different 13 banks. They’ve greater than 5100 branches and round 3418 ATMs unfold throughout the breadth and size of India. They’re headquartered in Mumbai.

Financial institution of India began with a paid-up capital of Rs 5 million, and at this time it has develop into one of many reputed nationalized banks in India. A few of the influential companies that they offer are a deposit account, completely different loans, Investments, debit and bank cards, cell and web banking, and extra.

Additionally Learn: Varieties of Joint Accounts Out there in Banks in India

6. Canara Financial institution

Canara Bank | List of Nationalized Banks in India

This financial institution was established in 1906 by Ammembal Subba Rao Pai. Initially, it was referred to as Canara Hindu Everlasting Fund, after which later, in 1910, it was renamed Canara Financial institution Restricted. It has just lately merged with Syndicate financial institution that has made its property and income greater. They’re headquartered in Bangalore, Karnataka.

It has a complete of 10403 financial institution branches and 13406 ATMs throughout the nation. Canara Financial institution offers employment to greater than 90000 individuals within the nation.  The main companies which they provide are private banking, credit score and debit playing cards, company and NRI banking, financial institution deposits, loans, Funding, and extra.

7. Central Financial institution of India

Central Bank Of India | List of Government Banks in India

It was integrated in 1911 by Sir Sorabji Pochkhanawala. This financial institution was one monetary group of India that was carefully monitored and managed by Indians. In 1918, the Central financial institution of India opened its department in Hyderabad, and later in 1969, it was nationalized with the opposite banks, and at the moment, it already had 195 branches.

Up to now, it has 4715 financial institution branches and 5319 ATMs nationwide. The Central Financial institution of India performed a significant function in constructing the primary Indian change financial institution introduced because the Central Trade Financial institution of India in round 1936 in London.

8. Financial institution of Maharashtra

Bank Of Maharashtra | Nationalized Banks in India

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This financial institution was based on September 16, 1935, in Pune by G. Kale and D.Ok. Sathe. They’ve the most important community of branches in Maharashtra and have greater than 15 million clients globally. As of December 2020, they’d a complete enterprise of Rs. 2,66,000 Lakh Crore.

In whole, there are 1900 financial institution branches, they usually present employment to greater than 13000 individuals within the nation. A few of the essential companies they supply are financial savings account, financial savings deposits, time period deposits, present account, playing cards ( debit and credit score), web and cell banking, loans (training, company, automobile, residence, agriculture, and so forth.), on-line buying and selling, extra.

9. Indian Abroad financial institution

Indian Overseas bank

This financial institution was integrated on February 10, 1937, by Thiru M. Chidambaram Chettiar. The main goal behind organising this financial institution was to advertise international change operations and enhance international banking transactions. They’ve greater than 3700 financial institution branches and 728 ATMs unfold throughout the nation.

They’re headquartered in Chennai. They not solely have financial institution branches in India however have a number of branches abroad as effectively in Seoul, Colombo, Bangkok, and Singapore. Indian Abroad Financial institution has consultant workplaces in Dubai, Guangzhou, and Vietnam. They grant numerous financial institution companies corresponding to deposit accounts,  normal banking, and monetary companies corresponding to deposit schemes, remittances, commerce finance, completely different loans, and so forth.

Additionally Learn: Listing of Scheduled Banks in India

10. Punjab & Sind Financial institution

Punjab and Sind Bank | List of Nationalized Banks in India

It was based by Bhai Vir Singh, Sir Sunder Singh Majitha, and Sardar Tarlochan Singh on June 24, 1908. The primary motive behind opening this financial institution was to uplift the poor land culminated in. They wished to assist the weaker part of society to assist enhance their way of life.

They’ve a complete of 1554 branches in India and 623 financial institution branches which can be situated in Punjab itself. They’re headquartered in Delhi and had been nationalized in 1980. The main companies that they provide are deposits,  private banking, retail banking, investments, company banking, web banking, cell banking, and extra.

11. UCO Financial institution

UCO Bank | List of Government Banks in India

This financial institution was integrated in 1943 by Ghanshyam Das Birla. Initially, it was referred to as United Business Financial institution, however its identify modified to UCO Financial institution a few years again. They’re headquartered in BTM Sarani, Kolkata. They’ve over 4000 service models and 49 zonal workplaces throughout India. UCO Financial institution additionally operates in Singapore and Hong Kong.

In whole, they’ve 2100 ATMs and have greater than 22000 workers working for them. A few of the main monetary companies they provide are shopper banking, company banking, finance, insurance coverage, funding banking, mortgage loans, personal banking, wealth administration, and so forth.

12. Union Financial institution of India

Union Bank Of India

It was established in 1907 and was nationalized in 1969 with the opposite banks. It was inaugurated by Mahatma Gandhi and had greater than 60% authorities minimize in it. When India received freedom from Britishers at the moment, this financial institution had 4 branches, three in Mumbai and one in Saurashtra.

It has greater than 4000 financial institution branches and 4411 ATMs unfold throughout the nation. Not too long ago in 2021, it merged with Andhra Financial institution and Company Financial institution, which has elevated its property and revenue as effectively. The main companies they supply are company banking, finance and insurance coverage, funding banking, mortgage loans, personal banking, wealth administration, and extra.

Additionally Learn: Service provider Banking in India

This was the whole record of presidency banks in India which can be additionally the nationalized banks.

Together with the data of nationwide banks, it’s important for us to know concerning the latest banks that merged with them-

Sl. No Acquirer Banks Banks to be Merged
1. Punjab Nationwide Financial institution(PNB) Oriental Financial institution of Commerce and United Financial institution of India
2. Indian Financial institution Allahabad Financial institution
3. Canara Financial institution Syndicate Financial institution
4. State Financial institution of India Bhartiya Mahila Financial institution, SB of Bikaner and Jaipur, SB of Patiala, SB of Travancore
5. Union Financial institution of India Andhra Financial institution and Company Financial institution
6. IndusInd Financial institution  

Bharat Monetary (SKS Microfinance)

7. Financial institution of Baroda Vijaya Financial institution and Dena Financial institution

Large Financial institution Mergers

The federal government of India introduced the mergers on August 30, 2019. The main function of mergers was to strengthen the banking sector and enhance the wealth of shareholders. These banks had been merged as a result of they had been utilizing an identical CBS platform that may profit from the quick realization of good points.

The Finance Minister stated that they want to create next-generation banks, and for that, it’s important that you’d want banks which have a powerful nationwide presence and international attain. The great a part of the merger was that the staff weren’t taken out; as a substitute, they had been adjusted in several banks.

Additionally Learn: 20 Finest Banks for Enterprise Mortgage in India

Though, there have been a complete of 27 banks which have merged just lately, and the quantity has lowered to 12. Tell us about a few of the mergers intimately:

1. Punjab Nationwide Financial institution, Oriental Financial institution of Commerce, and United Financial institution

This amalgamation occurred in August 2019. PNB is the primary financial institution in them, and it made it the second-largest public sector financial institution with a market of Rs 17.95 lakh crore. This quantity is 1.5 instances greater than PNB previous to the merger. Now, they’ve a complete of 11 437 financial institution branches.

The whole worker energy on the time of the merger of every financial institution was-

PNB- 65, 116

OBC- 21, 729

United Financial institution- 13, 804.

2. Canara Financial institution and Syndicate Financial institution

The second large merger was of Canara Financial institution and Syndicate Financial institution. Each the banks are from South India, and amongst them, Canara financial institution grew to become the chief financial institution which made it the fourth-largest public sector financial institution. Its enterprise elevated tremendously after the merger and reached Rs. 15.20 Lakh crore.

Collectively they’ve 10 391 financial institution branches, 12829 ATMs, and a mixed energy of 91 685 workers. This merger was achieved to enhance the attain of banking companies to the bigger public.

3. Union Financial institution of India, Andhra Financial institution, and Company Financial institution

Union Financial institution grew to become the anchor financial institution among the many different two public sector banks. This alliance was introduced in 2019, and it made Union Financial institution of India the fifth largest public sector financial institution after the consolidation with Andhra Financial institution and Company Financial institution.

It has elevated the enterprise dimension of Union Financial institution of India to 14.59 Lakh and a complete of 9609 financial institution branches.

4. Indian financial institution and Allahabad Financial institution

Indian Financial institution grew to become the primary financial institution, and Allahabad Financial institution was absorbed in it. This amalgamation made Indian Financial institution the seventh-largest Public Sector financial institution as its enterprise dimension elevated to eight.08 lakh crores. The main advantage of this merger is that now they’ve a nationwide presence and branches, which has elevated its community tremendously.

Often Requested Query

Q1) What number of Nationwide Banks are there in India?

There are a complete of 12 Nationwide Banks in India. Earlier, the record was comparatively greater, however after the mergers and acquisitions, the present record as of 2021 is 12.

Q2) What number of banks have been amalgamated in India?

A complete of 10 banks have been amalgamated into 4.

Q3) What are the names of all of the nationwide banks?

They’re 12 in quantity, and their names are  Punjab Nationwide Financial institution, Financial institution of Baroda, Financial institution of India, Central Financial institution of India, Canara Financial institution, Union Financial institution of India, Indian Abroad Financial institution, Punjab, and Sind Financial institution, Indian Financial institution, UCO Financial institution, and Financial institution of Maharashtra, State Financial institution Of India.

Really helpful: What’s Bearer Cheque?

This was the record of nationalized banks in India and their latest merger with different public sector banks. One essential factor to notice is that the majority the nationalized banks are public sector banks during which the main stake is authorities. This record would enable you select the financial institution as per your requirement plus provide you with info on their institution and historical past.

Subscribe to Moneymint Weekly

Each Sunday we e-mail individuals such as you with prime ideas, insights and alternatives to handle your funds and construct your on-line enterprise. No hype, no scams, no faux gurus. Join beneath to get the subsequent one.