What is Nationalized bank?
According to the IMF (International Monetary Fund), “Nationalisation” is defined as “government taking control over assets and over a corporation, usually by acquiring the majority or the whole stake in the corporation”.
In India, Banks are categorized into public sector banks and Private Sector banks. There are 27 public sector banks and around 93 commercial banks in India. Under public sector banks there are 19 nationalized bank, 6 are SBI and its associated banks and rest 2 are IDBI bank and Bharatiya Mahila Bank.
List of Nationalised banks in India:
Bank of India
Bank of Baroda
Bank of Maharashtra
Central Bank of India
Indian Overseas Bank
Oriental Bank of Commerce
Punjab & Sindh Bank
Punjab National Bank
Union Bank of India
United Bank of India
State Bank and its associates :
State Bank of India
State Bank of Bikaner and Jaipur
State Bank of Hyderabad
State Bank of Mysore
State Bank of Patiala
State Bank of Travancore
Other 2 branches :
Bharatiya Mahila Bank
Note : SBI is not nationalized bank. 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 nationalized bank, it is a Public Sector Undertaking (PSU) and not one of the nationalized banks of India.
Similarly, IDBI Bank Ltd. is also a public sector bank but not one of the nationalized banks of India.
History of Nationalized banks :
- India’s central bank, the RBI (Reserve Bank of India) was the first bank to be nationalized in 1949.
- Then Imperial Bank of India was nationalized and re-christened as State Bank of India in 1955.In 1960 7 subsidiaries of SBI were also nationalized.
- Then 14 Indian private banks were nationalized in 1969.
- Then 6 more Indian private banks were nationalized in 1980. New Bank of India was later (in 1993) merged with Punjab National Bank.