CLASSIFICATION OF

BANKS
ON THE BASIS OF OWNERSHIP
1) PUBLIC SECTOR BANKS
• Owned and controlled by the government.
• All the nationalised banks in India and Regional Rural Banks (RRBs) are public
sector banks
• Eg : SBI, Bank of Baroda, Union Bank
2) PRIVATE SECTOR BANKS
• Owned and controlled by private individuals or corporations
• Eg : South Indian Bank, Federal Bank etc.
• The liberalisation of the Indian economy has led to the formation of new private
sector banks known as new generation banks or Hi-tech banks. Eg : IDBI Bank,
HDFC Bank etc.
3) CO-OPERATIVE BANKS
• Owned and controlled by co-operative societies.
• Established to meet the financial needs in rural areas
ON THE BASIS OF DOMICILE
1) DOMESTIC BANKS
Banks which are registered within the country

2) FOREIGN BANKS
Banks which are registered in a foreign country and has it’s headquarters in foreign
country. In India Citi Bank is a foreign bank.