What is a Nationalised Bank?
Nationalised Banks are those banks which were taken over through Banking companies (Acquisition and Transfer of Undertaking) Bill. In the year 1969 there were 14 largest commercial banks in India which were holding at that time 84% of total bank deposits in India. In the same year Indian Government issued an Ordinance (Banking Companies (Acquisition and Transfer of Undertakings) Ordiance and nationalised these 14 banks from the midnight of 19th July, 1969. Again in 1980, Indian Government again nationalised 6 more banks taking the tally to 20. Thus, the move increased the presence of nationalised banks in India, with 84% of the total branches coming under the control of the Central Government. Out of these 20 nationalised banks, New Bank of India was merged with PNB in 1993. In 2011, IDBI bank and in 2014 Bharatiya Mahila Bank were nationalized with a minimum capital of Rs 500 crore. Thus, currently there are 21 nationalised banks in India (See list below):
|Sl. No.||Nationalised Banks of India|
|3.||Bank of Baroda|
|4.||Bank of India|
|5.||Bank of Maharashtra|
|7.||Central Bank of India|
|11.||Indian Overseas Bank|
|12.||Oriental Bank of Commerce|
|13.||Punjab and Sind Bank|
|14.||Punjab National Bank|
|17.||Union Bank of India|
|18.||United Bank of India|
|20.||Industrial Development Bank of India|
|21.||Bharatiya Mahila Bank|
What is a Public Sector Bank (PSB)?
PSBs are banks where a majority stake (i.e. more than 50%) is held by the Central Government. There are a total of 27 PSBs in India [21 Nationalized banks + 6 State bank group (SBI + 5 associates) ]. The shares of these banks are listed on stock exchanges.