Nationalization of Banks
- First bank to be nationalized was RBI on 1 January 1949.
- Nationalization of Imperial Bank of India and its conversion into State Bank of India in July 1955.
- Conversion of 8 major states associated banks into subsidiary banks in 1959.
- Nationalization of 14 other Indian Scheduled banks in July 1969.
- Nationalization of 6 more banks in April 1980.
- Indian Bank merged into Punjab National Bank in 1955
- At present, there are 27 commercial banks in public sector. Out of these, 19 banks are nationalized.
- There are 297 scheduled banks (including foreign banks) and one non scheduled bank at the end of December 2000.
- Out of 297 scheduled banks, 223 banks are in public sector and accounts for about 82% of the total deposits of scheduled banks.
Objectives of Nationalization
- To eliminate concentration of economic power in few hands
- To diverse the flow of bank credit towards priority sector consisting of agriculture and and allied activities, small scale industries and small businesses.
- To foster a new class of entrepreneur so as to create, sustain and accelerate economic growth.
- To professionalize bank managements.
- To impart adequate training as also reasonable terms of service to bank staff
- To extend banking facilities to unbanked rural areas.
List of Nationalized Banks in India
Nationalized Banks / Public-sector banks
- Allahabad Bank
- Andhra Bank
- Bank of Baroda
- Bank of India
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- Corporation Bank
- Indian Bank
- Indian Overseas Bank
- Oriental Bank of Commerce
- Punjab National Bank
- Punjab & Sind Bank
- Syndicate Bank
- UCO Bank
- Union Bank of India
- United Bank of India
- Vijaya Bank
- IDBI Bank
- Dena Bank