Nationalised Banks in India
The 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.
Nationalisation in Two Phases
By 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.
In 1980, when Mrs. Gandhi was re-elected as the Prime Minister for her third term at the PMO, she initiated a 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.
List of Nationalised Banks in India
Here’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|
|3||Bank of Baroda||1969|
|4||Bank of India||1969|
|5||Bank of Maharashtra||1969|
|7||Central Bank of India||1969|
|11||Indian Overseas Bank||1969|
|12||Oriental Bank of Commerce||1980|
|13||Punjab & Sind Bank||1969|
|14||Punjab National Bank||1969|
|17||Union Bank of India||1980|
|18||United Bank of India||1969|
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 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
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.
Head Offices of Indian Nationalized Banks
Head Office, 2, Netaji Subhas Road
Indian Overseas Bank,
Central Office 762, Anna Salai, P.B.No.3765
Andhra Bank Building Sultan Bazar, P.B.No.161
Oriental Bank of Commerce
E-Block, Connaught Place, P.B.No.329
New Delhi-110 001.
Bank of Baroda,
Baroda Corporate Centre, C-26, G-Block, Bandra-Kurla Complex,
Bandra (East), Mumbai-400 051.
Punjab National Bank
7, Bhikaji Cama Place, Africa Avenue
New Delhi-110 066.
Bank of India,
Head Office Express Towers, Nariman Point
Post Box No.1, Manipal-576 119
Bank of Maharashtra,
Lok Mangal 1501, Shivaji Nagar, Post Box No.919
Union Bank of India,
Union Bank Building Central Office, 239, Backbay Reclamation Post Box No.93A, Nariman Point,
112, Jayachamarajendra Road Post Box No.6648
United Bank of India
16, Old Court House Street
Central Bank of India,
Central Office Chander Mukhi, Nariman Point
Punjab & Sind Bank,
Bank House 4th floor , 21, Rajendra Place
New Delhi-110 008.
Bharath Building G.H.S. Road, Post Box No.88
Head Office 10, Biplabi Trailokya Maharaj , Sarani
Dena Corporate Centre
C-10 G Block Bandra Kurla Complex Bandra East
Mumbai 400 051.
, Administrative Office Janardhan Towers No.2, Residency Road
Building P.B.No.1384, 31, Rajaji Road
Last Updated on May 14, 2015