Nationalised Banks in India
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.
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
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.
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.
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 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.