What is the Public Sector Bank?
Public Sector Banks in India – A bank is called as a Public Sector Bank only when a major percentage (more than 50%) stake is held by the Government. The shares of these banks are listed on stock exchanges. In India, there are about 12 Public Sector Banks (post merger announced by Mrs Nirmala Sitaraman, Finance Minister of India).
The driving force of Indian Economy is Banking Sector. This sector is strictly regulated by Reserve Bank of India. The Government of India is introducing reforms to make Banking Sector better. In India, Public Sector Banks own almost 80% of market share.
PUBLIC SECTOR BANKS IN INDIA
State Bank and its Associates Banks
|S.No.||Bank Name||Head Quarter/Office|
|1||State Bank of Bikaner & Jaipur||Rajasthan|
|2||State Bank of Hyderabad||Hyderabad|
|3||State Bank of Mysore||Bangalore|
|4||State Bank of Patiala||Punjab|
|5||State Bank of Travancore||Thiruvananthapuram|
The State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore, and Bharatiya Mahila Bank were merged with State Bank of India with effect from 1 April 2017.
Public Sector Banks
|S. No.||Bank Name||Headquarters||Tagline|
|1||Bank of Baroda||Vadodara||India’s International Bank|
|2||Bank of India||Mumbai||Relationships beyond Banking|
|3||Bank of Maharashtra||Pune||One Family One Bank|
|4||Central Bank of India||Mumbai||Central to you since 1911, Build A Better Life Around Us|
|5||Indian Overseas Bank||Chennai||Good people to grow with|
|6||Punjab & Sind Bank||New Delhi||Where series is a way of life|
|7||State Bank of India||Mumbai||The banker to every Indian|
|8||UCO Bank||Kolkata||Honours Your Trust|
Public Sector Banks in India that are being merged (Effective from 1st April 2020)
- Punjab National Bank, Oriental Bank of Commerce and United Bank of India will combine to form the India’s second-largest lender
- Canara Bank and Syndicate Bank will merge.
- Union Bank of India will amalgamate with Andhra Bank and Corporation Bank.
- Indian Bank will merge with Allahabad Bank.
List of Public Sector Banks -To be merged
|1||Punjab National Bank||New Delhi||The Name you can Bank Upon|
|Oriental Bank of Commerce||Gurugram||Where every individual is committed|
|United Bank of India||Kolkata||The Bank that begins with “U”|
|2||Canara Bank||Bangalore||Together we Can, It’s easy to change for those who you love|
|Syndicate Bank||Manipal||Faithful. Friendly|
|3||Union Bank of India||Mumbai||Good people to bank with|
|Andhra Bank||Hyderabad||Where India Banks|
|Corporation Bank||Mangalore||A Premier Public Sector Bank, Prosperity for all|
|4||Indian Bank||Chennai||Your Tech-friendly bank|
|Allahabad Bank||Kolkata||A tradition of trust|
Points to Note about Public Sector Banks in India
1) SBI remains India’s largest bank.
2) Once the Oriental Bank of Commerce and United Bank are merged into the Punjab National Bank, it will become India’s second largest bank. It will create a bank with a business of Rs 17.95 lakh crore.
3) Once the Syndicate bank is merged into the Canara Bank, the resultant bank will become India’s fourth largest public sector bank with Rs 15.20 lakh crore business.
4) Union Bank, Andhra Bank, Corporation Bank to merge to become India’s fifth largest public sector bank with Rs 14.59 lakh crore business.
5) According to the data, India has only one bank among the top 100 banks in the world; i.e. SBI which is at the 55th spot with assets worth $535 billion.
6) China has 18 and US has 11 banks in the list of top 100. Japan has 9 banks in the top 100 and UK and Korea that have 6 banks each.
7) According to the GOI, the size of gross non-performing assets (NPA) of state-owned banks stood at ₹7.9 lakh crore, as of March 31, 2019.
8) The Government has announced capital infusion of Rs 55,000 crores into the Public Sector Banks.