Public sector banks are those Banks in which the government has majority shareholding atleast 51 percent. In India, public sector banks are owned and controlled by the government either directly or indirectly through the Reserve Bank of India. These banks are also known as “National Banks”.
Public Sector Banks may be classified into three categories :
- State Bank Group : The public sector commercial banking in India started with the setting up of state bank of India in 1955. State bank group consists of the state Bank of India and it’s 6 associate Banks.
- Nationalised Banks : An important step towards public sector banking was taken in July 1969, when major banks were nationalised. Again in 1980, 6 more private sector banks were nationalised, bringing up the total number of such banks to 20. However in 1993 one of these banks viz, New Bank of India merged with Punjab National Bank and hence at present there are 19 nationalised Banks in India.
The nationalised Banks occupy a prominent position in the commercial banking structure of the country. The bulk of the banking business is in the hands of these banks. These banks have their presence throughout the country and undertake all types of commercial banking business.
3. Regional Rural Banks : Regional Rural Banks were setup on the recommendations of a working group headed by M.Narasimham in 1975.Initially 5 such banks were setup on 2nd October, 1975. In 1976, the regional rural banks act was passed by the parliament paving the way for the establishment of such banks throughout the country. Regional rural banks are rural oriented banking institutions establishment with the object of providing credit and other facilities to the neglected sectors on the rural areas.
In the year 2005, a process was initiated for the structural consolidations of RRBs sponsored by the same bank within a state. As a result of amalgamation of RRBs throughout the country , 196 RRBS have now been reduced to 84.
Objective Of Public Sector Bank :
- To extend banking facility on a large scale, particularly in the rural and semi urban areas.
- To promote agricultural finance and to remove the defects in the system agricultural finance.
- To help the Reserve Bank in implementing it’s credit policies.
- To help the Government to purse it’s broad economic policies.
- Public sector banks may be set up as a statutory corporation by special Acts passed by the parliament. Eg. State Bank of India.
- Public sector banks are Indian Banks and they do not include foreign banks.
- Public sector banks aims at serving the society beside earning profit.
- Public sector banks have offices or branches throughout the country. They are founded in rural, semi urban and urban areas.
List of Public Sector Banks In India :
There are currently 27 Public Sector banks in India out of these 19 are nationalised bank and 6 Sbi And it’s associate Banks and rest two banks are IDBI bank and Bharatiya Mahila Banks which are categorized as other public sector banks. There are total 93 commercial banks in India.
A. State Bank of India : The state bank of India was established under the state Bank of India act, 1955, by nationalising the imperial bank of India. It came into existence on July 1, 1955 . This marked the beginning of the nationalisation of banks in India. Some State bank of India Associate Banks :
- State Bank of Bikaner.
- State bank of Jaipur.
- Stats bank of Hyderabad.
- State bank of Indore.
- State bank of Mysore
- State bank of Patiala
- State bank of Saurashtra
- State bank of Travancore
B. Allahabad Bank : The headquarter of Allahabad Bank at Kolkata, Tagline : Tradition of trust And CMD and Chairman Atul Kumar Goel.
C. Andra Bank : The headquarter of Andra Bank at Hyderabad, Tagline : Such More to do in focus and CMD&chairman J Packirisamy.
D. Bank of India : The headquarter of bank of India at Mumbai, Tagline : Relationship Beyond Banking And CMD& chairman Dinbanchu Mahapatra.
E. Bank of Baroda: The headquarter of Bank of Baroda at Vadodara ,Tagline : India’s International bank and CMD&chairman PS Jaya kumar.
F. Bank of Maharashtra: The headquarter of Bank of Maharashtra at Pune, Tagline : One Family One bank And CMD&Chairman AS Rajeev .
G. Canara Bank: The headquarter of Canara bank at Bangalore, Tagline : Together we can .
H. Central Bank of India : The headquarter of Central Bank of India at Mumbai, Tagline : Build a better life around us and CMD&Chairman Pallav Mahapatra.
I. Corporation Bank : The headquarter of Corporation bank at Manglore, Tagline : Prosperity for all And CMD&chairman PV Bharathi.
J. Dena Bank & Vijaya Bank : These two banks are merged into Bank of Baroda and now Bank of Baroda is third largest bank in India.
K. Indian Bank : The headquarter of Indian Bank at Chennai, Tagline : Talking Banking Technology to common man and CMD&Chairman Phadmaja Chunduru.
L. Oriented Bank of Commerce: The headquarter of Oriented Bank of Commerce at Gurugram, Tagline : Where every Individual is committed and CMD&chairman Mukesh Kumar Jain.
M. Punjab National Bank : The headquarter of Punjab National Bank at New Delhi, Tagline : The name you can bank upon and the CMD&Chairman Sunil Mehta.
N. UCO bank : The headquarter of UCO at Kolkata, Taglines : Honor your trust And CMD & chairman SS Mallikarjuna.
O. Union Bank : The headquarter of Union Bank at Mumbai, Tagline Good people to bank with And CMD&Chairman Rajoran Raj.
P. United Bank of India : The headquarter of this bank at Kolkata, Tagline: The bank’s that begins with u and CMD& Chairman Ashok Kumar.
Other Public sector Banks :
A. IDBI bank
B. BMB bank
C. State bank of Sikkim
Frequently Questions And Answers :
1. Which banks are public sector banks?
Ans: Some Public sector banks are :
- State Bank of India
- United Bank of India
- Punjab National Bank
- UCO bank
- Union Bank
- Indian Bank
2. How many public sector banks in India in 2019 ?
Ans: There are currently 27 Public Sector banks in India out of these 19 are nationalised bank and 6 SBI And it’s associate Banks and rest two banks are IDBI bank and Bharatiya Mahila Banks which are categorized as other public sector banks.
3. Who is Chairman of Punjab National Bank?
Ans:Sunil Mehta is the Chair man of Punjab National Bank.
4. In which year State bank of India was established?
Ans: State Bank of India was established in the year 1955 under Indian act with 6 associate Banks.
5. Why Public Sector Bank are known as Government bank?
Ans: Public sector banks are known as government bank because here government has majority shareholding more than 51 percent.