Public Sector Banks (PSBs) in India and the whole details, 2019

Public Sector Banks in India


A PSU bank should have a majority of 51% or more stake occupied by the central govt. of India and the stock/shares of these banks are listed on Indian stock Exchanges. In 1955 the oldest and the largest commercial bank of the Indian sub-continent, The Imperial Bank of India (IBI) was nationalized by the central govt. of India and the Indian banking and economy controlling authority, the RBI (Reserve Bank of India) took 60% stake of IBI and renamed the institution as the State Bank of India or SBI. In this process, gradually the central govt. directly involved in the banking business and within 1969 additional 14 major private banks were also nationalized and 84% of the total branches came under government control.

Reserve Bank of India (RBI)

RBI is the Central Bank of India or Apex Bank, execute multiple functions that is overseeing monetary policies, issuing currency notes, managing and/or dealing Foreign Exchange, working as a bank of Government and as a banker of scheduled commercial banks and among others.
As a Banker to Banks, the RBI focuses on-
  • Enabling smooth, swift and seamless clearing and settlement of inter-bank.
  • Providing an efficient means of funds transfer for Banks.
  • Enabling Banks to maintain their accounts with the RBI for statutory reserve requirements and maintenance of transaction balances.
  • Working as a lender of last resort.

Diagram of Indian Banking System











Public Sector Banks in India: List as of 2019

Public, Private and Foreign banks are the major driver in growing Indian economy. PSU banks are the key ruler among these financial institutions and also the non-banking financial companies (NBFC) taking a part of effect.

Here we will discuss about 22 Indian PSU banks thoroughly.
1. Andhra Bank

A medium sized PSB headquartered in Hyderabad, Telangana, India. 84.83% stake holding by Govt. of India (GOI) as of Dec 2018, with a network of 2900 branches, 4 extensions counters, 38 satellite offices and 3636 ATMs, it operates in 25 states and 3 Union territories. Andhra Bank has ranked positively with serving Life and non-life insurances and a major bancassurance partner. Visit Site.
2. Allahabad Bank

One of PSB headquartered in Kolkata, west Bengal, India, 79.41% stake holding by GOI as of Dec 2018, has 3245 branches across India. Allahabad Banks market capitalization in June 2018 was 573 million USD and ranked # 1882 on the Forbes Global 2000 list. Visit Site.



3. Bank of India

One of the top 5 major PSBs in India and an efficient commercial bank headquartered at Bandra kurla, Mumbai, India with 5100 domestic branches and 56 overseas offices, 83.09% stake holding by GOI. Bank of India is a founder member of SWIFT (Society for Worldwide Interbank Financial Telecommunications). Visit Site

4. Bank of Baroda

A reputed multi-national PSB with several financial services, headquartered in Vadodara, Gujrat, India, 63.74% stake holding by GOI as of Dec 2018, a network of 5538 domestic and international branches and 10441 ATMs as of 2017 with holding the total assets of 3.58 trillion rupees. Visit Site.
5. Bank of Maharashtra

A major PSB having 1897 bank branches and 15 million customers across the country, headquartered at Lokmangal, Shivajinagar, Pune, Maharashtra, India, 87.01% stake holding by GOI as of Dec 2018. Visit Site.
6. Corporation Bank

The PSB with a network of 2600 fully automated CBS branches, 3040 ATMs and 4724 branchless banking units in India, headquartered in Mangalore, India, 86.77% stake holding by GOI. Visit Site.
7. Central Bank of India

The govt. owned oldest and largest commercial bank in India, headquartered in Mumbai, India, 88.02% stake holding by GOI and has a network of 4685 branches, 4886 ATMs, 10 satellite offices and 1 extension counter. Visit Site. 
8. Canara Bank

A largest an Indian PSB, headquartered in Bengaluru, Karnataka, India, having a network of 6639 branches and more than 10600 ATMs situated all over India. It also has overseas offices in London, Hongkong, Shanghai, Moscow, Doha, Bahrain, South Africa, Dubai, Tanzania and Newyork. The GOI is holding 72.55% stake as of Dec 2018. Visit Site.  
9. Dena Bank

It has 1874 branches in whole India headquartered in Mumbai, Maharashtra, India, 80.74% stake holding by GOI. Recently on 17 sept 2018 Indian Finance Ministry has proposed to merge 3 state run banks- Vijaya Bank, Bank of Baroda & Dena Bank into a single bank due to heavy NPA issues. Dena Bank is currently working under prompt corrective action framework for NPA issues…Visit Site
10. Indian Overseas Bank

A major PSB headquartered in Chennai, Tamil Nadu, India, having 3400 domestic branches, 3300 ATM networks all over India, 3 extension counters and 8 overseas offices and branches in Singapore, Colombo, Seoul, Bangkok, Guangzhou, Vietnam and Dubai etc. 91.99% stake holding by GOI…Visit Site
11. Indian Bank

A major PSB and financial services company headquartered in Chennai, India, 2851 bank branches, 2857 ATMs, 693 cash deposits points and having assets of 51 billion USD. Indian bank has overseas Branches in Colombo (SriLanka) and Singapore. The GOI is holding 81.73% stake as of Dec 2018…Visit Site
12. IDBI Bank

Industrial Development Bank of India (IDBI) is a PSB to provide credit and other financial facilities for the development of the fledgling Indian industry, headquartered in Mumbai, India. The GOI is holding now 52.02% stake as of Dec 2018, and this bank is going to be merged with other banks soon…Visit Site
13. Oriental Bank of Commerce

The PSB bearing 33 billion USD as of 2016, headquartered in Gurgaon, Haryana, India, nearly 1092 bank branches all over in India and offering all kinds of financial services. The GOI is holding now 77.23% stake as of Dec 2018…Visit Site.
14. Punjab National Bank

A major multi-national PSB and financial services company, bearing nearly 7000 bank branches and 10681 ATMs across 764 Indian cities, headquartered in New Delhi, India, holding total assets of 110 billion USD or Rs.765830.10 cr. PNB has overseas branches and representative offices in Kowloon, Dubai (UAE), Kabul, Almaty (Kazakhstan), Hongkong and Shanghai (China), Oslo (Norway), Sydney (Australia), Bhutan and Nepal. The GOI is holding now 70.22% stake of PNB as of Dec 2018...Visit Site.
15. Punjab & Sind Bank

The govt. owned bank bearing 1554 branches all over in India, headquartered in New Delhi, India, serving Forex, retail banking and financial services, holding total assets of 14 billion USD or Rs. 102581.42 cr. The GOI is holding now 85.56% stake of this bank as of Dec 2018…Visit Site.
16. Syndicate Bank

A major PSB and commercial bank, going on with 60 regional offices through-out the country and 4010 brick and mortar branches including an overseas branch in London, 12 extension counters, 37 satellite offices as of July 2017, headquartered in Manipal, Udupi, Karnataka, India, having total assets of 42 billion USD as of 2017. The GOI is holding now 76.16% stake of this bank as of Dec 2018….Visit Site
17. State Bank of India

The top major multinational PSB and financial services company, headquartered in Mumbai, India, ranked 216th on the Fortune Global 500 list of the world’s biggest corporations as of 2017, holding total assets of 460 billion USD or Rs. 3312461 Cr more/less as of 2018, nearly 15570 home branches with ATMs and operating in 24 overseas countries – Australia, Bangladesh, Belgium, Bhutan, Canada, China, France, Germany, Indonesia, Japan, Maldives, Mauritius, Nepal, Nigeria, Oman, Saudi Arabia, Singapore, South Africa, Srilanka, UAE, UK, USA etc. The GOI (govt. of India) is holding its 58.53% stake as of Dec 2018…Visit Site
18. United Bank of India

The PSB headquartered in Kolkata west Bengal India, bearing with 36 regional offices and 2054 branches situated allover India and holding total assets of 17 billion USD or Rs. 123027.57 Cr more/less, 92.25% stake hold by GOI as of Dec 2018…Visit Site
19. Union Bank of India

one of the largest PSB, listed on Forbes 2000, has around 4300 domestic and international branches. 5 of these are overseas- UK, China, Dubai, Antwerp and Sydney. It is holding more/less 56 billion USD or Rs. 404695.9 Cr. UBI headquarter is in Mumbai. The GOI is holding 67.43% stake as of Dec, 2018…Visit Site
20. UCO Bank

Formerly named United Commercial Bank, a well trusted PSB, headquartered in Kolkata India. As of 2017, this bank had 4000 plus service units, 49 zonal offices spread all over in India. Its overseas branches are in Singapore and Hongkong. Holding more/less the total assets of 34 billion
USD or Rs. 244882.53 Cr, the GOI is taking 90.8% stake of this bank as of Dec 2018…Visit Site
21. Vijaya Bank

A growing PSB headquartered in Bengaluru India, has a network of 2031 branches, 4000 customer touch points including 2001 ATMs as of 2017, holding total assets of more/less 22 billion USD or Rs. 154881.57 Cr. The GOI is holding 68.77% stake as of Dec 2018…Visit Site
22. India Post Payment Bank (It was set up on 1st Sept 2018, in New Delhi, India, and its 100% stake is occupied by the Govt. of India)

Operating under the Dept. of Post, Ministry of Communications, GOI, aims to utilize all of India’s 155015 post offices as access points and 300000 postal service workers to provide home to home banking services and so that early 650 branches and 3250 post offices was inaugurated as access points...Visit Site






Necessity of PSU Banks in India

After nationalization of many private banks between 1969 to 1980, so many changes have been achieved since then for convenient and loyal lending facility. At a time only Tata, Birla, Ambani and other elite classes prominent industrialists, businessmen were being provided liquid fund from the PSU banks. But time goes on, now a days, the PSU bank’s objectives and operations are changed by the government.

Now many middle-class people with low income and savings, the excluded people of remote areas such as farmers, artisans, craftsmen, micro-small and medium sized businesses (MSME) who only would borrow funds with high interest rates from local money lenders are getting availability of PSU banks with sober interest rates and time tenures. The ruling govt. of India, as of 2019, enabled transfer of cash and subsidies to farmers in remote rural areas with opening up of a 100 million plus zero balance accounts. Indeed, the objective was to take the banking to deep rural and sub-urban areas where private banks wouldn’t go. As a consequence, money laundering, misuse and forfeit the money of common public by unscrupulous govt. employee, hand to hand cash transaction and tax invasion etc. were resisted almost and executed a direct account to account remittance process.


N.P.A issues in Indian PSU Banks.

Non-performing Assets (NPA) is a cause of severe headache in Indian PSU banks as well as for Indian economic health. In March 2018 quarter, the gross NPA of Indian PSU banks surged past Rupees. 10 trillion and most of the cases, the borrowers are elite classes and used to give away to foreign lands. RBI already invented and raised many surgical rules to recover the debt which is not serviced for 90 days and convert them in default cases and recovery processes can be started against it. On the contrary, the Indian private and foreign banks and regional rural banks have been maintaining their NPA level at very low that is good to observe. 


Contribution in Indian Economy

The PSU banks are always on the side of the Indian govt. and used to be funded always by the government to encourage economic development of all aspects of the society. The development of education, constructions or renovation, development of businesses and entrepreneurships, construction of financial institutions and risk management firms, personal growth, social ceremonies and rituals and lots more are strongly held by Indian PSU banks and become an inevitable essential “GOD particles” for the common men.

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