One of the most crucial assets for any country is its money system. For an enormous country like India, it becomes essential to have proper infrastructure for the lending and borrowing system for the public.
India’s banking system has a wide reach that provides assistance to every household, be it urban or rural. In this light, the role of nationalized or government banks in India cannot be neglected. These government banks act as a strong foundational base for such a great banking system.
The various private banks, along with the public banks in India, relieve a major chunk of the workload from the Central Bank. Therefore it is significant to detail the prominence of various current government banks in India that hold the majority of the portion in the current banking system.
Learn more about – Private Banks In India – A Complete List Of Private Sector Banks In India
About Government Banks
At present, 12 public or government banks are operating all over India. They address the needs of the society with several schemes that facilitate the minimization of poverty and other economic issues.
These 12 government banks are described in detail hereunder.
1. State Bank of India
The biggest bank in India by its assets, State Bank of India is the most famous and reliable bank in the country. The bank was established in 1955 when the government took ownership of the Imperial Bank of India.
The bank is ranked at the 43rd position in the World’s largest bank list. It has exceptional coverage all over the World, with 24000 Indian offices and an international presence in more than 36 countries. With opening various subsidiaries, it is growing to be one of the all-time best financial services providers.
2. Bank of Baroda
With its roots in 1908, the Bank of Baroda was established in the early 20th century (1908) by a group of prominent people led by Maharaja Sayajirao Gaekwad III. With a tremendous network base in 24 countries, it is India’s fourth-biggest public sector bank.
According to the latest statistics, it has over 132 million users and a system worth US$218 billion. It first grew overseas in Uganda and Kenya in 1953. The Government of India holds around 63% stake & control in the bank. The bank has its main aims to achieve diversity in its operations and reach maximum people seeking out financial services.
3. Bank of India
It is one of the most prominent public sector banks in India. Founded in 1906, it was set up by a team of well-recognized businessmen. It has a huge banking network in India as well as abroad, with a worth of US$140 billion.
Over the years, it has managed to expand in various countries with over 5100 branches across the globe. It manages to grab the public’s interest by allowing them money sources at very cheap interest rates. Apart from this, it also manages NRI deposits, insurance schemes, etc.
4. Canara Bank
It is known to be the third-largest government bank in India, with a global presence in 7 countries with 9877 branches. It was started in 1906 by a famous lawyer Ammembal Subba Rao Pai. It was originally named Canara Hindu Permanent Fund, but it was modified to Canara Bank after 4 years of its setup.
It expanded its base out of India in 1983 in London. Since then, it has opened its branches in many other countries, including Hong Kong, Bahrain, Sharjah, etc. It has several moral principles towards the society, including removing economic disparities, ignorance, promoting savings & investments culture, imparting financial education, etc.
5. Bank of Maharashtra
It is the largest government bank base in Maharashtra, with 1900 branches spread across the nation. It was set up in 1935 by V. G. Kale and D. K. Sathe. It was incorporated with an investment of US$1 million.
The current executive director of this Indian public sector bank is A. B. Vijayakumar. It is also famous for providing financial services to small-scale businesses that led to the foundation of big industrial houses.
6. Central Bank of India
Known as the largest and the most antiquated government bank of India, this bank is expanded all over India. It has a great reach and presence in India, with 4608 branches. It was one of the many banks to first issue/provide a credit card facility in 1980.
One of the recent initiatives of the Central Bank of India is robotic banking. It announced the news by naming the built robot ‘Medha’. It has several plans for expansion in London, Dubai, Doha, and Singapore.
7. Indian Bank
With its headquarters situated in Chennai, it has a wide reach of over 100 million customers and 6004 branches. It has an international reach in Colombo and Singapore. In 2019, the bank merged with Allahabad Bank to make it the 7th largest bank in the nation.
In 1904, the bank was founded by V. Krishnaswamy Iyer. Currently, it consists of 227 foreign correspondent banks spread over 75 countries. To curb the harsh impact of demonetization, it also launched tech products aimed at helping the needy.
8. Indian Overseas Bank
Based in Tamil Nadu, Indian Overseas Bank was set up in 1937 by M. Ct. M. Chidambaram Chettyar. It has a phenomenal network of 3400 Indian branches and 6 branches abroad. In December 2021, it was placed 2nd in the most digital transactions among the government banks in India. It collaborated with Max Bhupa to offer different health and personal accident goods & products.
9. Punjab National Bank
Regarded as India’s 2nd largest public sector bank, PNB always made it to the news for its great initiatives and public offerings. One of the oldest financial services providers, it was established in 1894 by Dyal Singh Majithia and Lala Lajpat Rai.
It has recorded more than 180 million customers with a network of 12,248 bank branches. There are several bank subsidiaries that PNB owns in several parts of the World. It has branches in Dubai, Hongkong, Kazakhstan, Kabul, etc.
10. UCO Bank
Set in Kolkata in 1943, UCO Bank was ranked as 80 on the prestigious Fortune India (Top 500) in 2020. Growing in foreign countries, it presently has its base in Hongkong and Singapore. The bank was established by the Indian industrialist, G.D. Birla. Currently, it has 3078 branches with over 2500 ATMs.
11. Punjab & Sind Bank
Punjab & Sind Bank has a renowned banking network, especially in Punjab, with 1526 branches in PAN India. Out of the total branches, 635 are present in the Punjab state itself. Owned & controlled by The bank was set in 1908 in Amritsar by 3 men named Vir Singh, Sir Sunder Singh Majitha, and Sardar Tarlochan Singh. According to 2020, it had a total income worth Rs. 8827 Crore. It has its major aim to be a technologically sound bank with a great network all over the country.
12. Union Bank of India
Union Bank of India is currently the 5th largest government bank of India. Founded by Seth Sitaram Poddar, it has an operating network spread across 9316 branches, with 4 being overseas. Since its inception in 1919, it has gained prominence. In 2020, it announced a merger with Corporation Bank and Andhra Bank. This merger made the bank among the top 5 public sector banks in India.
Conclusion
Government banks in India play a vital role in giving daily bread to many households. Not only this, but the government bank functions as a key party for the industrial houses in capital investment strategies. The 12 government banks in India mentioned above work in synergy to offer the best money sources for their small, medium, or long-term money needs.
MSMEx is an ed-tech platform for MSMEs and small businesses. MSMEx experts help choose the best options from the public sector banks in India. For more details about MSME education and ed-tech platform, visit msmex.in
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