Public sector banks in India
Public Sector Banks (PSBs) are banks where a majority stake (i.e. more than 50%) is held by a government. The shares of these banks are listed on stock exchanges. There are a total of 21 PSBs in India.
- Allahabad Bank
- Andhra Bank
- Bank of India
- Bank of Baroda
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- Corporation Bank
- Dena Bank
- Indian Bank
- Indian Overseas Bank
- Oriental Bank of Commerce
- Punjab & Sindh Bank
- Punjab National Bank
- Syndicate Bank
- UCO Bank
- Union Bank of India
- United Bank of India
- Vijaya Bank
SBI and IDBI often mentioned in this list are regarded as PSUs and not as nationalised banks themselves.
Emergence of public sector banks
The Central Government entered the banking business with the nationalization of the Imperial Bank Of India in 1955. A 60% stake was taken by the Reserve Bank of India and the new bank was named as the State Bank of India. The seven other state banks became the subsidiaries of the new bank in 1959 when the SBI(Subsidiary Bank's) Act was passed. The next major nationalisation of banks took place on the 19th of July 1969 when the government of India, under prime minister Indira Gandhi, nationalised an additional 14 major banks. The total deposits in the banks nationalised in 1969 amounted to 50 crores. This move increased the presence of nationalised banks in India, with 84% of the total branches coming under government control.
Public sector banks before the economic liberalisation
The share of the banking sector held by the public banks continued to grow through the 1980s, and by 1991 the public sector banks accounted for 90% of the banking sector. A year later, in March, 1992, the combined total of branches held by public sector banks was 60,646 across India, and deposits accounted for Rs. 1,10,000 crore. The majority of these banks were profitable, with only one out of the 21 public sector banks reporting a loss.
Problem, with nationalised banks reporting a combined loss of Rs. 1160 crores. However, the early 2000s saw a reversal of this trend, such that in 2002-03 a profit of Rs. 7780 crores by the public sector banks: a trend that continued throughout the decade, with a Rs. 16856 crore profit in 2008-2009.
- "Nationalisation of Banks in India". India Finance and Investment Guide. Indiamart. Archived from the original on 3 January 2014. Retrieved 29 March 2016.
- Banerjee, Abhijit V.; Cole, Shawn; Duflo, Esther (2004). "Banking Reform in India". India Policy Forum (1). Retrieved 31 October 2011.
- "Chapter 3: Public sector banks: an overview and identification of weak banks". Reports. Reserve Bank of India. 4 October 1999. Retrieved 31 October 2011.