India has a strong banking and financial sector. The Indian banking system consists of 21 private sector banks, 27 public sector banks, 49 foreign banks, 56 regional rural banks, 1,562 urban cooperative banks and 94,384 rural cooperative banks, in addition to cooperative credit institutions as of October 2018, according to India Brand Equity Foundation (IBEF). It was found that the total deposits in the Indian banks increased at a CAGR of 11.66%, while lending increased at a CAGR of 10.94%, for the financial year FY17-18.
Modern banking system was introduced in India in 18th century. Bank of Hindustan & and General bank of India are among first modern banks introduced in India. Bank of Hindustan was established in in 1770, General bank of India, established in 1786.
State Bank of India is one of the largest and oldest bank in India which is still functioning & have around 25 crore saving accounts holders, till 2018. In 1806 SBI started as bank of Calcutta in 1809 renamed as the Bank of Bengal. This was among 3 banks founded by a presidency government.
The other two bank were the Bank of Bombay in 1840 and the Bank of Madras in 1843, after independence, became the State Bank of India in 1955.
The Indian banking system consist of 21 private sector banks, 56 regional rural banks, 1,562 urban cooperative banks and 94,384 rural cooperative banks & 49 foreign banks as of Oct, 2018.
Top 5 Nationalized Banks In India 2020
Nationalization refers to the transfer of public sector assets to be operated or owned by the state or central government. In India, the banks which were previously functioning under private sector were transferred to the public sector by the act of nationalization and thus the nationalized banks came into existence.
State Bank of India (SBI)
The tagline of State Bank of India and its five associate are as follows: “Pure banking nothing else, With you all the way
SBI is an multinational, public sector banking and financial services statutory body having headquarters in Mumbai, Maharashtra, SBI is ranked as 236th in the Fortune Global 500 list of the world’s biggest corporations of 2019.
It is the largest bank in India with a 23% market share in assets, besides a share of one-fourth of the total loan and deposits market
Punjab National Bank
The tagline of Punjab National Bank is as follows: “The name you can bank upon”
Punjab National Bank (PNB) is a Banking and Financial service bank owned by Government of India with its headquarters is in New Delhi, India. The bank was founded in 1894.
PNB has a banking subsidiary in the UK (PNB International Bank, with seven branches in the UK), as well as branches in Hong Kong, Kowloon, Dubai, and Kabul. PNB is going to be the second largest public sector Bank (PSB) after merger of two banks United Bank of India and Oriental Bank of Commerce into it from 1st April 2020.
Union Bank of India
The tagline of Union Bank of India is as follows: “Good people to bank with“
Union Bank of India is one of the largest government-owned banks of India; the government owns over 90% of its share capital. It is listed on the Forbes 2000, and has assets of US$13.45 billion. UBI has around 4,300 branches. Four of these are overseas in Hong Kong, Dubai, Antwerp, and Sydney.
UBI also has representative offices at Shanghai, Beijing and Abu Dhabi. Lastly, UBI operates in the United Kingdom through its wholly owned subsidiary, Union Bank of India (UK). Union Bank of India will be the anchor bank for both Andhra bank and corporation bank. Mergers are expected to commence on 1st April 2020 as announced by finance Minister of India Nirmala Sitharaman
The tagline of Canara Bank is as follows: “Together we Can”.
Canara Bank is one of the largest public sector banks owned by the Government of India. It is headquartered in Bengaluru. It was established at Mangalore in 1906 by Ammembal Subba Rao Pai. It is one of the oldest public sector banks in the country.
The government nationalized the bank in 1969.The Tagline of Canara Bank is “Together we Can”. As of 31 March 2019, the bank had a network of 6310 branches and more than 8851 ATMs which are spread across 4467 centres. The bank also has offices abroad in London, Hong Kong, Moscow, Shanghai, Dubai, Tanzania and New York.
Bank of Baroda
Bank of Baroda (BOB) is an Indian Multinational, public sector Banking and financial services company. It is the second largest public sector bank in India post-merger with a business mix of close to US$225 billion.
Based on 2019 data, it is ranked 1145 on Forbes Global 2000 list, the government of India announced the merger of Bank of Baroda, Vijaya Bank and Dena Bank on September 17, 2018, to create the country’s third largest lender.
The Maharaja of Baroda, Maharaja Sayajirao Gaekwad III, founded the bank on 20 July 1908 in the Princely State of Baroda, in Gujarat. As many as 10 banks have merged with Bank of Baroda to date.
These banks are all owned by the Government of India and have a large network of branches across the country. They offer a wide range of banking services, including savings accounts, current accounts, loans, investments, and insurance.
SBI is the largest bank in India by assets and market share. It has over 20,000 branches and 55,000 ATMs across the country. PNB is the second largest bank in India and has over 10,000 branches and 25,000 ATMs. UBI is the third largest bank in India and has over 9,000 branches and 20,000 ATMs. Canara Bank is the fourth largest bank in India and has over 8,000 branches and 15,000 ATMs. BoB is the fifth largest bank in India and has over 7,000 branches and 10,000 ATMs.
These banks are all safe and reliable, and they offer a wide range of banking services to meet the needs of their customers. If you are looking for a bank in India, these are five of the best options available.
Here are some of the benefits of banking with a nationalized bank in India:
- Wide network of branches and ATMs
- Secure and reliable banking services
- Competitive interest rates on loans and deposits
- Government backing
If you are looking for a safe and reliable bank in India, a nationalized bank is a good option.