Banking System In India

Indian banking system banking zoneThe Modern Banking system in India started with the Foundation of Bank of Hindustan but it ceases to operate in 1832.  This phase also saw the merger of three Major banks i.e. Bank of Madras, Bank of Bombay and Bank of Bengal and are called Imperial Bank. It was taken over by State Bank of India in 1955. This section is specifically to know your bank more deeply. In 1969, 14 major private banks were nationalized. In the year 1980, 6 more private banks were nationalized. After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.

Indian banking system can be classified into two heads i.e., scheduled and non-scheduled banks. The scheduled banks are those that are define under section 2 of Reserve Bank of India Act, 1934. The scheduled banks includes all nationalized banks, State Bank of India, all private sector banks Regional Rural Banks and Foreign banks.

Banking system in India can be classified in a different way:-

  1. Public Sector Bank– Government is the owner having more that 51% stake. Earlier there were 27 Public Sector Banks but after merger it comes down to 12. Six merged Banks are State Bank of India, Bank of Baroda, Punjab National Bank, Union Bank of India, Canara Bank and Indian Bank. Six independent Banks are Bank of Maharashtra, UCO Bank, Indian Overseas Bank, Punjab and Sindh Bank, Bank of India, Central Bank of India.
  2. Private Sector Banks– These Banks are those which are owned by Private Individuals/Institutions and are registered under Companies Act 1956. At present there are nine private sector banks in India. These are ICICI Bank, Axis Bank, Development Credit Bank, HDFC Bank, IndusInd Bank, Kotak Mahindra Bank, Yes Bank, IDFC and Bandhan Bank.
  3. Regional Rural Banks– Owned by Central Government, State Government and Sponsor Bank (any commercial bank) in the ratio 50:15:35.
  4. Foreign Banks– These banks are incorporated outside India are operating branches in India also.
  5. Development Banks– These includes Industrial Finance Corporation of India, State Finance Corporations, Industrial development Bank of India, Export-Import Bank of India (EXIM), Small scale Industries Development Bank of India (SIDBI).

 

Kindly find the information related to loan schemes and eligibility of some of our Major banks :

 

 BANK NAME ESTABLISHMENT YEAR           LINK FOR THE SITE

UNION BANK OF INDIA

1919, Amalgamation with Andra and Corporation bank came into effect on 1st April 2020.  Union Bank of India

BANK OF BARODA

1908, Amalgamation with Vijaya Bank and Dena Bank came into effect on 1st April 2019..  Bank of Baroda

STATE BANK OF INDIA

1955, Merger of 5 Associate Banks i.e. State Bank of Bikaner, State bank of Patiala, State Bank of Travancore, State Bank of Hyderabad and State Bank of Mysore with SBI on 15th Feb 2017.  State Bank of India

PUNJAB NATIONAL BANK

1894, Amalgamation with Oriental Bank of Commerce and United Bank of India came into effect on 1st April 2020.  Punjab National Bank

CANARA BANK

1906, Amalgamation with Syndicate Bank came into effect on 1st April 2020.  Canara Bank

ICICI BANK

Established by Industrial Credit and Investment Corporation of India on 1994  ICICI Bank

HDFC BANK

 Incorporated in 1994 HDFC Bank

BANDHAN BANK

Founded on 17th June 2015 Bandhan Bank

KOTAK MAHINDRA BANK

Founded on Feb 2003 Kotak Mahindra Bank

 

Do you want to know more about our banks?  Kindly visit here

 

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