In India, nationalized banks refer to commercial banks that have been taken over or owned by the government. The process of nationalization began in 1969 and continued in the 1980s, aimed at ensuring that the government controlled the banking system to promote social welfare, economic development, and financial inclusion. In this blog, you’ll find a list of nationalised banks in India, what they mean, and how they work. Continue reading to know more!
Table of contents
What is the Nationalised Bank in India?
A nationalised bank in India is a financial institution that was previously privately owned but has been taken over by the government through an act of nationalisation. This process allows the government to own a majority stake i.e. over 51%, in the bank which makes it a public sector entity.
Nationalised banks, such as the State Bank of India (SBI) and Punjab National Bank (PNB), are aimed at providing accessible banking services to the public to support economic development and ensure financial inclusion across the country.
Nationalized banks are regulated by the Reserve Bank of India (RBI) and have their governance under the Ministry of Finance, Government of India. They provide a wide range of banking services, including savings and current accounts, loans, insurance, and investment options.
The nationalization of banks occurred in two major phases:
- First Phase (1969): On July 19, 1969, the Government of India nationalized 14 major commercial banks, which had a significant share of the banking market. This step was taken to extend banking services to rural areas and to promote government control over credit and economic planning.
- Second Phase (1980): In 1980, the government nationalized 6 more banks, making a total of 20 nationalized banks.
The goal behind nationalizing these banks was to reduce the influence of private capital, ensure that the banking system served the needs of the economy, and provide better access to credit for various sectors, including agriculture, industry, and small businesses.
List of Nationalised Banks in India
As of now, the following banks in India are nationalized:
Banks Nationalized in 1969:
- Allahabad Bank (merged with Indian Bank in 2020)
- Bank of India (BoI)
- Bank of Baroda (BoB)
- Canara Bank
- Central Bank of India
- Corporation Bank (merged with Union Bank of India in 2020)
- Dena Bank (merged with Bank of Baroda in 2019)
- Indian Bank
- Indian Overseas Bank (IOB)
- Punjab National Bank (PNB)
- Syndicate Bank (merged with Canara Bank in 2020)
- UCO Bank
- Union Bank of India
- Vijaya Bank (merged with Bank of Baroda in 2019)
2. Banks Nationalized in 1980:
- Andhra Bank (merged with Union Bank of India in 2020)
- Bank of Maharashtra
- Canara Bank (already nationalized in 1969, but its merger in 2020 with Syndicate Bank is notable)
- Eastern Bank of India (merged with Punjab National Bank)
- Punjab & Sind Bank
Detailed Information About Nationalised Banks
You can read in detail about the nationalized bank. Here is the detailed information given about Nationalised banks in Indian
State Bank Of India
| Headquarters | Tagline | CEO |
| Mumbai, India | Pure Banking, Nothing Else | Dinesh Kumar Khara. |
The biggest bank in India is the State Bank of India. According to the Fortune Global 500 report, SBI is placed 236. In 1955, the bank was established. SBI now has the largest branch network in India thanks to the merger with its five partner banks.
Punjab National Bank
| Headquarters | Tagline | CEO |
| New Delhi, India | The name you can Bank Upon | Atul Kumar Goel. |
The Indian government owns the banking and financial services company Punjab National Bank. In 1894, the bank was started. OBC Bank and United Bank are combined with PNB Bank. With 18 lakh crore rupees in assets and the second-largest branch network in the nation, the new bank will overtake the Public Sector Bank of India.
Must Read- EDUCATION LOAN INTEREST FOR DIFFERENT BANKS FOR EDUCATION ABROAD
Bank Of Baroda
| Headquarters | Tagline | CEO |
| Vadodara, Gujarat | India’s International Bank | Sanjiv Chadha |
An international bank from India is called the Bank of Baroda. It was founded in 1908 and is currently the third-largest public sector bank in the nation. With a combined business of Rs. 14.82 lakh crore, Bank of Baroda, Vijaya Bank, and Dena Bank would become the third-largest lender in the nation.
Canara Bank
| Headquarters | Tagline | CEO |
| Bengaluru, Karnataka | Together We Can | Lingam Venkat Prabhakar |
One of India’s oldest public sector banks is Canara Bank. Canara Hindu Permanent Fund, the name under which the bank was created in 1906, was later changed to Canara Bank Limited in 1910. The merger of Canara Bank and Syndicate Bank will create the fourth-largest Public Sector Bank in the nation. The bank’s overall revenue will be Rs. 15.2 lakh crore. Additionally, it will grow to be India’s third-largest bank branch network.
Union Bank of India
| Headquarters | Tagline | CEO |
| Mumbai, India | Good People to Bank With | Rajkiran Rai G. |
One of India’s largest public sector banks is the Union Bank of India. 90% of the company’s share capital is owned by the government. In 1919, the bank was established. with the merger of Corporation Bank and Andhra Bank.
Bank Of India
| Headquarters | Tagline | CEO |
| Mumbai, India | Relationship Beyond Banking | Atanu Kumar Das |
Bank of India is the founder member of SWIFT (Society for Worldwide Inter Bank Financial Telecommunications) and one of the top 5 banks in India.
Indian Bank
| Headquarters | Tagline | CEO |
| Chennai, India | Your Own Bank | Shri Shanti Lal Jain. |
Indian Bank has overseas branches in Colombo and Singapore. It was founded in 1907. With Merger of Allahabad Bank.
Bank of Maharashtra
| Headquarters | Tagline | CEO |
| Pune, Maharashtra | One Family, One Bank | A S Rajeev |
Founded in Pune in 1935, Bank of Maharashtra was nationalized in 1969. It is one of the largest public sector banks in Maharashtra, with a network of over 2,000 branches serving millions of customers. The bank has been instrumental in providing financial support to small businesses and industries.
Central Bank of India (CBI)
| Headquarters | Tagline | CEO |
| Mumbai, Maharashtra | Central to You Since 1911 | Matam Venkata Rao |
Founded in 1911, CBI was India’s first commercial bank entirely owned and managed by Indians. It was nationalized in 1969 and expanded its reach across India and abroad. The bank has been a pioneer in offering digital banking services and launched various initiatives like robotic banking with “MEDHA.”
Indian Overseas Bank (IOB)
| Headquarters | Tagline | CEO |
| Chennai, Tamil Nadu | Good People to Grow With | Partha Pratim Sengupta |
Established in 1937 in Chennai, IOB specializes in foreign exchange and international banking. It was nationalized in 1969 and has a significant overseas presence, including branches in the Middle East and South East Asia. IOB is also known for its mobile banking services.
Punjab & Sind Bank
| Headquarters | Tagline | CEO |
| New Delhi, Delhi | Where Service is a Tradition | Harsh Kumar Bansal |
Founded in 1908, Punjab & Sind Bank was nationalized in 1980. Based in New Delhi, the bank has a strong regional presence, especially in Punjab. It has experienced significant growth since its public listing and continues to offer a wide range of banking services.
UCO Bank
| Headquarters | Tagline | CEO |
| Kolkata, West Bengal | Honours Your Trust | Atul Kumar Goel |
Founded in 1943, UCO Bank is headquartered in Kolkata. It was nationalized in 1969 and expanded both domestically and internationally. The bank has a strong digital banking presence and was the first to offer internet banking services in India.
The nationalised banks in India operate as per the guidelines of the Reserve Bank of India (RBI). For any kind of banking and financial services, refer to the official websites of these banks. Check some FAQs based on nationalised banks in India below.
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FAQs
There are 12 Public Sector Banks in India as of 2024.
After the massive merger, the total number of Public Sector Banks (PSBs) in India has come down from 27 banks in 2017 to 12 in 2021.
There are currently 12 nationalised banks operating in India. They are the State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India, Central Bank of India, Canara Bank, Union Bank of India, Indian Overseas Bank, Punjab and Sind Bank, Indian Bank, UCO Bank, and Bank of Maharashtra.
SBI or the State Bank of India is the largest public sector bank in India. It has over 22,542 branches (as of October 2024) and one of the largest network of ATMs.
Among many banks, SBI, Bank of Baroda and Union Bank are some of the best banks for education loans with interest rates ranging between 8.05% p.a. to 11.75% p.a.
Nationalized banks in India were established through two phases: in 1969 when 14 major banks were nationalized, and in 1980 when 6 more banks were added.
Nationalization aimed to increase government control over the banking sector, promote financial inclusion, and ensure equitable distribution of credit to various sectors of the economy.
Several mergers took place in recent years, such as 2019 mergers of Dena Bank, Vijaya Bank, and Bank of Baroda, and 2020 mergers of Corporation Bank, Andhra Bank with Union Bank of India.
Punjab & Sind Bank is considered one of the smaller nationalized banks in India by total business size and branch network compared to other larger banks like SBI and PNB.
Yes, all nationalized banks, including SBI, Bank of Baroda, and Union Bank, offer digital banking services like mobile apps, UPI, and internet banking for customer convenience.
