Nationalised Banks in India
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The BaseThe history of nationalization of Indian banks dates back to the year 1955 when the Imperial Bank of India was nationalized and re-christened as State Bank of India (under the SBI Act, 1955). Later on July 19, 1960, the 7 subsidiaries of SBI viz. State Bank of Hyderabad (SBH), State Bank of Indore, State Bank of Saurashtra (SBS), State Bank of Mysore (SBM), State Bank of Bikaner and Jaipur (SBBJ), State Bank of Patiala (SBP), and State Bank of Travancore (SBT) were also nationalized with deposits more than 200 crores.
In the Indian banking scenario, most public sector banks are referred to as Nationalised Banks. This classification is, however, inaccurate. According to the IMF (International Monetary Fund), “Nationalisation” is defined as “government taking control over assets and over a corporation, usually by acquiring the majority stake or the whole stake in the corporation”. In 1949, during the early years of the country’s independence, India’s central bank, the RBI (Reserve Bank of India) became the first bank to be nationalised. This was an important move since the RBI would soon become the regulatory authority for banking in India. Most Indian banks at that time were privately owned. Thus, the Indian government then recognized the need to bring them under some form of government control to be able to finance India’s growing financial needs.
List of Nationalised Banks in India and Their Head officesHere’s the list of the 19 nationalised banks in India that are currently listed on the RBI website –
|S.No.||Bank Name||Year of Nationalisation||Head Offices of Indian Nationalized Banks|
|1||Allahabad Bank||1969||The Chairman|
Head Office, 2, Netaji Subhas Road
|2||Andhra Bank||1980||The Chairman|
Andhra Bank Building Sultan Bazar, P.B.No.161
|3||Bank of Baroda||1969||The Chairman|
Bank of Baroda,
Baroda Corporate Centre, C-26, G-Block, Bandra-Kurla Complex,
Bandra (East), Mumbai-400 051.
|4||Bank of India||1969||The Chairman|
Bank of India,
Head Office Express Towers, Nariman Point
|5||Bank of Maharashtra||1969||The Chairman|
Bank of Maharashtra,
Lok Mangal 1501, Shivaji Nagar, Post Box No.919
|6||Canara Bank||1969||The Chairman|
112, Jayachamarajendra Road Post Box No.6648
|7||Central Bank of India||1969||The Chairman|
Central Bank of India,
Central Office Chander Mukhi, Nariman Point
|8||Corporation Bank||1980||The Chairman|
Bharath Building G.H.S. Road, Post Box No.88
|9||Dena Bank||1969||The Chairman|
Dena Corporate Centre
C-10 G Block Bandra Kurla Complex Bandra East
Mumbai 400 051.
|10||Indian Bank||1969||The Chairman|
Building P.B.No.1384, 31, Rajaji Road
|11||Indian Overseas Bank||1969||The Chairman|
Indian Overseas Bank,
Central Office 762, Anna Salai, P.B.No.3765
|12||Oriental Bank of Commerce||1980||The Chairman|
Oriental Bank of Commerce
E-Block, Connaught Place, P.B.No.329
New Delhi-110 001.
|13||Punjab & Sind Bank||1969||The Chairman|
Punjab & Sind Bank,
Bank House 4th floor , 21, Rajendra Place
New Delhi-110 008.
|14||Punjab National Bank||1969||The Chairman|
Punjab National Bank
7, Bhikaji Cama Place, Africa Avenue
New Delhi-110 066.
|15||Syndicate Bank||1969||The Chairman|
Post Box No.1, Manipal-576 119
|16||UCO Bank||1969||The Chairman|
Head Office 10, Biplabi Trailokya Maharaj , Sarani
|17||Union Bank of India||1980||The Chairman|
Union Bank of India,
Union Bank Building Central Office,
239, Backbay Reclamation Post Box No.93A,
|18||United Bank of India||1969||The Chairman|
United Bank of India
16, Old Court House Street
|19||Vijaya Bank||1980||The Chairman|
, Administrative Office Janardhan Towers No.2, Residency Road
On 10 February 2016, the RBI(Reserve Bank of India) released the February 2016 issue of its monthly bulletin which includes the Sixth Bi-monthly Monetary Policy Statement and Speeches by the Top Management and Current Statistics.
Nationalisation in Two PhasesBy the early 1960s, the Government of India realized that a significant share of deposits coming from the masses of India was controlled by 14 privately owned commercial banks. Indian agriculture and industries were booming and the need for finance was high. Financial regulations were also very important at that time since those would help shape the nature of the country’s economy for decades to come. Nationalisation became the watchword even the state airline, Air India, was nationalised in 1953. Acquisition of the Imperial Bank of India in 1955 was the next big step.
With Mrs. Indira Gandhi’s taking over as the Prime Minister of India, the Indian National Congress rallied for a state takeover of some of the major banks in the country. In what can be deemed a rather hasty move, the government promulgated an ordinance - the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969 - thereby nationalising all the 14 banks that were under consideration with effect from the midnight of 19 July 1969. As a follow-up to passing the ordinance, the Banking Companies (Acquisition and Transfer of Undertaking) Bill was taken up by the Parliament for discussion. It received a clear majority as well as the assent of the President within a month of issuing the ordinance.
In 1980, when Mrs. Gandhi was re-elected as the Prime Minister for her third term at the PMO, she initiated the second spate of bank nationalization. This time about six banks were nationalised and the Government of India controlled over 90 percent of the banking business in the country. Of the 20 banks that were nationalised, New Bank of India was later (in 1993) merged with Punjab National Bank.
Why were these banks nationalised?The nationalization of banks was a significant move undertaken by the government for the development of the country. Firstly, it instilled public confidence in the banking system encouraging the masses to save and invest. It allowed for the elimination of regional bias and promoted opening up of branches in the remote areas of the country as well, thus strengthening the banking network. By elimination of monopoly or credit competition, nationalization streamlined banking practices in the country, thereby directing funds where it was most necessary – towards industrial and sectoral development – as planned by the RBI and the Indian government.
Is SBI a nationalised bank?The State Bank of India was founded as the Imperial Bank of India in January 1921 through the merger of Bank of Calcutta, Bank of Bombay and Bank of Madras. In 1955, the Reserve Bank of India bought a 60-percent stake in the bank and renamed it State Bank of India (SBI Act, 1955). During the nationalisation of banks in 1969, and again in 1980, SBI was not added to the list of the ‘nationalised banks’ since it was already a state-owned financial institution. In 2008, the Government of India took over the RBI's stake in the bank to avoid any conflict of interests within the RBI (which both owned and regulated the SBI). Now though the SBI and its subsidiaries are often referred to as a nationalised bank, it is a Public Sector Undertaking (PSU) and not one of the nationalised banks of India. It is India's largest banking and financial services enterprise as of now.
Similarly, IDBI Bank Ltd. is also a public sector bank but not one of the nationalised banks of India. IDBI Bank was established in 1964 (IDBI Act, 1964) to aid developmental finance in the country. Initially, it was a financial institution and did not participate in core banking activities. IDBI Bank was inducted into banking in 2003 and was merged with IDBI Ltd. - a company, in which the Government of India holds about 70-percent stake, in 2005.
Nationalised banks in India
1. Allahabad Bank: Founded in 1865, this is one of the oldest established joint stock banks in India. Allahabad Bank was nationalised on July 19, 1969. The bank's total in 2016 was approximately Rs 18,884.94 crores.
2. Andhra Bank: Andhra Bank was founded in the year 1923. It is a medium-sized public sector bank which was nationalized in April 1980. The turnover of this bank for the year 2016 was around Rs 18027.42 crores. Andhra Bank was the pioneer of credit cards in India.
3. Bank of Baroda: This bank was established in 1908, some 109 years ago. The turnover raised by this bank was Rs 42199.92 crores in 2016. Services offered by this bank are international banking and financial services. The bank's headquarter is situated in Vadodara, Gujarat. It was nationalised in 1969.
4. Bank of India: Bank of India was established in the year 1906 and was nationalised in the year 1969. This commercial bank is growing rapidly and provides exclusive financial services to its consumers. Situated in Mumbai, Maharashtra, this bank earned a turnover of Rs 41796.47 crores in the year 2016.
5. Bank of Maharashtra: This bank was founded in the year 1935 and its headquarter is in Pune, India. It is a private sector bank, which has the largest number of branches in the state of Maharashtra. Bank of Maharashtra was nationalised in the year 1969 and accumulated a total turnover of Rs 13052.98 crores in the year 2016.
6. Canara Bank: Canara Bank is one of the oldest public sector banks. The bank has branches in other countries such as Hong Kong, Shanghai, Moscow, etc. It was established in the year 1906 and was nationalised in the year 1969. The total turnover generated by this bank was Rs 48942 crores in 2016.
7. Central Bank of India: It was founded in the year 1911 and was nationalized in 1969. The headquarter of this bank is in Mumbai, the financial capital of India. The bank earned a turnover of Rs 25887.89 crores in 2016.
8. Corporation Bank: Corporation Bank is 111 years old. It was established in the year 1906. Its headquarter is in Mangalore and also has representative branches in Hong Kong, Dubai etc. This bank was nationalised in the year 1980 and produced a turnover of Rs 19441.24 crores in 2016.
9. Dena Bank: This bank was founded in 1938 by Devkaran Nanjee and was nationalised in 1969. It generated a total turnover of Rs 10645.73 crores in 2016, although in 2017 it has started making losses. It is headquartered in Mumbai, India.
10. Indian bank: One of the top performing public sector banks in India, Indian Bank was founded on 15 August 1907. It has its headquarters in Chennai, India. It also has overseas branches in Colombo and Singapore. The bank was nationalized in 1969 and generated revenue of Rs 7370.16 crores in 2016.
11. Indian Overseas Bank: This major public sector bank is situated in Chennai, India, and provides banking services at various places like Dubai, Bangkok, Shanghai, to name a few. It was established in the year 1937 and was nationalized in 1969. The total turnover of this bank is Rs 23517.29 crores in 2016.
12. Oriental Bank of Commerce: OBC or Oriental Bank of Commerce was founded in Lahore in 1943. Currently, it is headquartered in Gurugram, India. It has generated a turnover of Rs 20,058.71 crores in 2016. It was nationalised in the year 1980.
13. Punjab and Sind Bank: This bank was founded in 1908 and provides banking and financial services all over India. The bank generated a turnover of Rs 8744.34 crores in 2016. Punjab and Sind Bank was nationalised in the year 1969.
14. Punjab National Bank: Punjab National Bank was founded in the year 1894 and is one of the oldest banks. It has its branches in UK, Dubai, Kabul etc. It was nationalised in the year 1969. The total turnover earned by this bank in 2016 was Rs 47424.35 crores.
15. Syndicate Bank: Syndicate bank was nationalised in the year 1969 and is one of the major banks in India. It has its headquarters in Manipal, India. The turnover generated by Syndicate bank in 2016 was Rs 6913.09 crores.
16. UCO Bank: UCO Bank or United Commercial Bank was established in 1943. This bank was nationalized in 1969. It had a turnover of Rs 18560.97 crores in the year 2016 and is one of the most trusted banks in India.
17. Union Bank of India: This bank was initiated in 1919 and was nationalized in 1980. It generated a revenue of Rs 32198.80 crores in the year 2016. It has its representative offices in Shanghai, Abu Dhabi, Beijing, etc.
18. United Bank of India: United Bank of India was founded 1950 and was nationalised in 1969. Headquartered in Kolkata, this bank was able to generate a turnover of Rs 9936.67 crores in 2016.
19. Vijaya Bank: This bank was established in 1931 in Mangalore, India, but now has its headquarters in Bengaluru. It generated a revenue of Rs. 12379 crores in the year 2016. It was nationalized in the year 1980. It provides facilities like consumer banking, corporate banking, banking and finance services etc.
Last Updated on: January 16th, 2019
Last Updated: November 18, 2017
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