Banks are financial inception with fundamental credibility that offers people a secure future with monetary support. It’s not only a supporting institution for the future but also helps in the present downer. The Reserve Bank of India was there in 1948 to nationalize the bank under the RBI Act to increase and improve the country’s economic status.
State Bank of India was the only govt bank back then and was regulated by RBI. After 1969 to develop the Indian economy, RBI ordered to nationalize every bank those are private-owned. Bank Nationalization is a policy decision that is managed by keeping specific goals in mind. It is the 50% shareholders with a valid statement under the control of the government.
Reason Behind Bank Nationalization
The Indian government decided to take over 14 commercial banks with deposits of 50 crores on 19th July 1969. It is the most significant step to be taken for the well-being of the national economy. The government took over to provide compensation for the loss of the cumulative value of seized assets that hasn’t come under the private sector before the nationalization.
The nationalization of a bank can be beneficial to the company as well in terms of growth, maximizing interest level, increasing shareholdings, strong bonds with customers, etc. The nationalization helped India to emerge as extraordinarily wealthy and probable of being discernible around the whole world. The Reserve Bank of India focused on the individual sides of profitability, augmentation of employment, efficiency argument, backward areas development, attention to priority sector, etc.
Top 5 Nationalised Banks in India
We are here to discuss about the top 5 nationalized banks that are turned into the public sector from the private sector under government control. In 2018 Indian government turned almost 20 banks into Public sector undertakings in order to unveil the loss of assets and national economic growth. To know in detail, read till the end.
1. State Bank of India
State Bank of India started in the year 1955 and the headquartered in Mumbai, India, which was named Bank of Calcutta and later named Bank of Bengal at first on 2nd June 1806. It is the first bank that has already been nationalized from the beginning.
Dinesh Kumar Khara is the CEO of the State Bank of India and is the 26th chairperson of the bank. SBI is the largest nationalized bank with 24000 branches and 62617 ATMs all around India. State Bank of India has 1/4th market share and serves over 45 crore customers through its immeasurable network.
2. Punjab National Bank
PNB is the second largest nationalized bank headquartered in Delhi and founded on 19th May 1894. It has a massive structure in terms of business volumes and networks. Punjab National Bank is working under the Indian government, regulated by the RBI act 1934 and the banking regulation act 1949. It has 12,248 branches, 13000 ATMs, and over 180 million customers.
The founder of the Punjab National Bank is Dyal Singh Majithia and Lala Lajpat Rai, continuing for 128 years. Punjab National Bank has grown with a revenue of almost 94,990 crore INR.
3. Canara Bank
Canara Bank is the public sector bank under the control of the Ministry of Finance, Government of India, founded by Ammembal Subba Rao Pai on 1st July 1906 in Mangalore, India. It also has offices in New York, London, and Dubai. This bank is in an oath of growing with rural area people and has been through several stages during the growth.
Canara Bank became phenomenal after getting nationalized in the year 1969 and completed its centennial performance in the banking industry In June 2006. It has 10,391 branches all over India, 13,423 ATMs, customers of over 16.06 crore, and its revenue is almost 84,525 crores till now.
4. Bank of Baroda
Bank of Baroda is a government-owned international banking and financial services company based in Vadodara, Gujrat, established on 20th July 1908. It has almost 132 million customers and a turnover of 218 billion dollars with a global presence of 100 overseas offices.
Maharaja Sayajirao Gaekwad was the founder of the Bank of Baroda, which had taken under the government on 20th July 1969 along with 13 other significant commercial banks. Bank of Baroda has 8214 branches and 10033 ATMs all over India, and the CEO is Sanjiv Chadha. It is the most popular bank in Vadodara in terms of customer service and financial improvement.
5. Central Bank of India
Central Bank of India is the first commercial bank directly operated by the Indian government based in Mumbai, India. The founder of the Central Bank of India was Sorabji Pochkhanawala, established on 21st December 1911 and nationalized in 1969. It has almost 4,594 branches across 26 states, 3,481 ATMs, and a revenue of 25,897.44 crores in India, wholly managed by Indians.
M.V. Rao is the CEO of the Central Bank of India, and Sir Pherozesha Mehta was the first Chairman. During the past 109 years of banking history, the bank, with the guidelines of the Reserve Bank of India, playing an increasingly active role in agriculture, small-scale industries, and medium and large industries.
|1. State Bank of India||1955||22000||62617||450000000|
|2. Punjab National Bank||1894||12248||13000||181000000|
|3. Bank of Baroda||1908||8520||9200||160000000|
|4. Canara Bank||1906||9734||12208||110000000|
|5. Central Bank of India||1911||4594||3644||–|
The Indian government decided to take control of some of the commercial banks to make a prodigious development in order to serve progressive results to its customers and invest their hard earns for future savings. We here covered almost every little piece of information regarding these 5 nationalized banks that are very much popular and have an enormous quantity of customers. Furthermore, this article will make you understand the root of the bank’s culture and growth validity.