BANKING IN INDIA

Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The three Presidency Banks namely the Bank of Bengal, the Bank of Bombay and the Bank of Madras was merged in the year 1921 to form The Imperial Bank which, upon India's independence, became the State Bank of India on July 1 1955.

Bank of Bengal (HQ)

Bank of Bombay (HQ)

Bank of Madras (HQ)

Scheduled Banks : These are banks which have been included in the Second Schedule of Reserve Bank of India(RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down in the Sec 46(a) of the RBI Act 1934. Such Banks has to mandatorily follow two conditions 1. The paid capital and the collected funds should atleast be 5 lakhs. 2.Any activity of the bank will not adversely affect the interests of depositors. NB: A Scheduled Commercial Bank can be a Public Sector Bank, Private Sector Bank or a Foreign Bank. Nationalised Banks : These are banks where majority stake is held by the Government of India. Private Sector Banks: These are banks majority of share capital of the bank is held by private individuals

Foreign Banks : are registered and have their headquarters in a foreign country but operate their Branches in our country. Co Operative Banks : A co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank. Co-operative banks are often created by persons belonging to the same local or professional community or sharing a common interest. Cooperative banks generally provide their members with a wide range of banking and financial services (loans, deposits, banking accounts, etc).They provide limited banking products and are specialists in agriculture-related products.Cooperative banks are the primary financiers of agricultural activities, some small-scale industries and self-employed workers.Co-operative banks function on the basis of "no-profit no-loss". Anyonya Co-operative Bank Limited (ACBL) is the first co-operative bank in India located in the city of Vadodara in Gujarat. Co operative Banks in India are registered under the Co-operative Societies Act.The cooperative bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965. Cooperative banks in India finance rural areas under: Farming Hatchery Cattle Personal finance Milk Cooperative banks in India finance urban areas under: Self-employment Home finance Industries Consumer finance Small scale units Personal finance In India the Co operative Bank follws a three tier structure State Coperative (apex body) District Co operative Banks Primary Agricultural Credit Societies Regional Rural Bank : Regional Rural Banks were established under the provisions of an Ordinance promulgated on the 26th September 1975 and the RRB Act, 1976 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors. The area of operation of RRBs is limited to the area as notified by GoI covering one or more districts in the State.RRBs are jointly owned by GoI, the concerned State Government and Sponsor Banks (26 scheduled commercial banks and one State Cooperative Bank); the issued capital of a RRB is shared by the owners in the proportion of 50%, 15% and 35% respectively. Prathama bank is the first Regional Rural Bank in India located in the city Moradabad in Uttar Pradesh.

NATIONALISATION of BANKS
After independence the Government of India adopted planned economic development for the country. Accordingly, five year plans came into existence since 1951. This economic planning basically aimed at social ownership of the means of production. However, commercial banks were in the private sector those days. In 1950-51 there were 430 commercial banks. The Government had some social objectives of planning. These commercial banks failed helping the government in attaining these objectives. It was considered that banks were controlled by business houses and thus failed in catering to the credit needs of poor sections such as cottage industry, village industry, farmers, craft men, etc.

July 1st 1955 : Imperial Bank was Nationalised and rechristened to State Bank of India (the 8 banks were converted as its assosiate banks )

State Bank of Bikaner & Jaipur (Initially it was two different banks but was later merged) State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore State Bank of Saurashtra - merged with SBI in 2008. State Bank of Indore - merged with SBI in 2010.

July 19th 1969 : 14 private Banks whose reserves were more than Rs 50 crores were Nationalised

Central Bank of India Bank of Maharashtra Dena Bank Punjab National Bank Syndicate Bank Canara Bank Indian Bank

Indian Overseas Bank Bank of Baroda Union Bank Allahabad Bank United Bank of India UCO Bank Bank of India

April 15th 1980 : 6 private Banks whose reserves were greater than Rs 200 crore were Nationalised Andhra Bank Punjab and Sind Bank New Bank of India Vijaya Bank Corporation Bank Oriental Bank of Commerce

On 4th of September 1993 the GoI merged New Bank of India with Punjab and Sind Bank. This reduced the number of Nationalised Banks from 20 to 19.

NB : Meaning of Nationalisation : It is the process of taking an industry or assets into the public ownership of a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being transferred to the public sector to be operated by or owned by the state. The opposite of nationalization is usually privatization or de-nationalisation, but may also be municipalization.

List Of Banks in INDIA Public Sector Banks: These are banks where majority stake is held by
S.No. the Government of India I NATIONALISED BANKS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 II III 1 2 3 4 5 Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab & Sind Bank Punjab National Bank Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank TOTAL OF 19 NATIONALISED BANKS [I] State Bank of India (SBI) ASSOCIATES OF SBI State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore TOTAL OF 5 ASSOCIATES [III] TOTAL OF STATE BANK GROUP.[II+III] IV 1 OTHER PUBLIC SECTOR BANK IDBI Ltd TOTAL OF PUBLIC SECTOR BANKS[I+II+III+IV] = 26

Public Sector Banks in India (26)

Private Sector Banks: These are banks majority of share capital

S.No. I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 I II 16 17 18 19 20 21 22 23 II III City Union Bank Ltd. ING Vysya Bank Ltd. SBI Commercial & International Bank Ltd. Tamilnad Mercantile Bank Ltd. The Bank of Rajasthan Ltd. The Catholic Syrian Bank Ltd. The Dhanalakshmi Bank Ltd. The Federal Bank Ltd. The Jammu & Kashmir Bank Ltd. The Karnataka Bank Ltd. The Karur Vysya Bank Ltd. The Lakshmi Vilas Bank Ltd. Nainital Bank Ltd. The Ratnakar Bank Ltd. The South Indian Bank Ltd. TOTAL OF 15 PVT BANKS [I] NEW PRIVATE SECTOR BANKS Axis Bank Ltd. Centurion Bank of Punjab Ltd. Development Credit Bank Ltd. HDFC Bank Ltd. ICICI Bank Ltd. Indusind Bank Ltd. Kotak Mahindra Bank Ltd. YES Bank TOTAL OF 8 NEW PVT BANKS [II] TOTAL OF 23 PVT BANKS [I+II] of the bank is held by private individuals

Private Banks in India (23)

Source : IBA and RBI

Foreign Banks in India: These banks are registered and have their
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 headquarters in a foreign country but operate their branches in our country. Abu Dhabi Commercial Bank Limited American Express Banking Corporation Antwerp Diamond Bank N.V. Arab Bangladesh Bank Limited. Bank Internasional Indonesia Bank of America NA Bank of Bahrain and Kuwait B.S.C. Bank of Ceylon Barclays Bank PLC BNP Paribas Chinatrust Commercial Bank Citibank N.A.. Credit Agricole Corporate & Investment Bank Deutsche Bank AG JPMorgan Chase Bank JSC VTB Bank Krung Thai Bank Public Company Limited Mashreqbank psc MIZUHO Corporate Bank Ltd. Oman International Bank S.A.O.G. Shinhan Bank Societe Generale Sonali Bank Standard Chartered Bank State Bank of Mauritius Ltd. The Bank of Nova Scotia The Bank of Tokyo-Mitsubishi UFJ Ltd. The Development Bank of Singapore Ltd. The Hongkong and Shanghai Banking Corporation Ltd. The Royal Bank of Scotland NV UBS AG FirstRand Bank Ltd. Commonwealth Bank of Australia United Overseas Bank Ltd. Total of Foreign Banks in India = 34

Foreign Banks in India(34)

Source : IBA and RBI