Banking in India

Banking in India originated in the last decades of the 18th century. The first banks were The
General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790;
both are now defunct. The oldest bank in existence in India is the State Bank of India, which
originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of
Bengal. This was one of the three presidency banks, the other two being the Bank of
Bombay and the Bank of Madras, all three of which were established under charters from the
British East India Company. For many years the Presidency banks acted as quasi-central banks,
as did their successors. The three banks merged in 1921 to form the Imperial Bank of India,
which, upon India's independence, became the State Bank of India.

History
Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a
consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and
still functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank: A company that
issues stock and requires shareholders to be held liable for the company's debt) It was not the
first though. That honor belongs to the Bank of Upper India, which was established in 1863, and
which survived until 1913, when it failed, with some of its assets and liabilities being transferred
to the Alliance Bank of Simla.

When the American Civil War stopped the supply of cotton to Lancashire from the Confederate

States, promoters opened banks to finance trading in Indian cotton. With large exposure to
speculative ventures, most of the banks opened in India during that period failed. The depositors
lost money and lost interest in keeping deposits with banks. Subsequently, banking in India
remained the exclusive domain of Europeans for next several decades until the beginning of the
20th century.

Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire
d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862;
branches in Madras and Puducherry, then a French colony, followed. HSBC established itself
in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of
the British Empire, and so became a banking center.

The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881
in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in
1895, which has survived to the present and is now one of the largest banks in India.
Around the turn of the 20th Century, the Indian economy was passing through a relative period
of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial
and other infrastructure had improved. Indians had established small banks, most of which
served particular ethnic and religious communities.

The presidency banks dominated banking in India but there were also some exchange banks and
a number of Indian joint stock banks. All these banks operated in different segments of the
economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign
trade. Indian joint stock banks were generally under capitalized and lacked the experience and
maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon
to observe, "In respect of banking it seems we are behind the times. We are like some old
fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome
compartments."

The period between 1906 and 1911, saw the establishment of banks inspired by
the Swadeshi movement. The Swadeshi movement inspired local businessmen and political
figures to found banks of and for the Indian community. A number of banks established then
have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of
Baroda, Canara Bank and Central Bank of India.

The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina
Kannada and Udupi district which were unified earlier and known by the name South
Canara ( South Kanara ) district. Four nationalised banks started in this district and also a leading
private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian
Banking".

During the First World War (1914-1918) through the end of the Second World War (1939-1945),
and two years thereafter until the independence of India were challenging for Indian banking.
The years of the First World War were turbulent, and it took its toll with banks simply collapsing
despite the Indian economy gaining indirect boost due to war-related economic activities. At
least 94 banks in India failed between 1913 and 1918 as indicated in the following table:
 Authorised
Year Number of banks Paid-up Capital
capital
s that failed (Rs. Lakhs)
(Rs. Lakhs)

1913 12 274 35

1914 42 710 109

1915 11 56 5

1916 13 231 4

1917 9 76 25

1918 7 209 1

Post-Independence
The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal,
paralyzing banking activities for months. India's independence marked the end of a regime of
the Laissez-faire for the Indian banking. The Government of India initiated measures to play an
active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the
government in 1948 envisaged a mixed economy. This resulted into greater involvement of the
state in different segments of the economy including banking and finance. The major steps to
regulate banking included:

 The Reserve Bank of India, India's central banking authority, was nationalized on

January 1, 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership)
Act, 1948 (RBI, 2005b).[Reference www.rbi.org.in]
 In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of
India (RBI) "to regulate, control, and inspect the banks in India."
 The Banking Regulation Act also provided that no new bank or branch of an existing
bank could be opened without a license from the RBI, and no two banks could have common
directors.

Nationalization
Despite the provisions, control and regulations of Reserve Bank of India, banks in India except
the State Bank of India or SBI, continued to be owned and operated by private persons. By the
1960s, the Indian banking industry had become an important tool to facilitate the development of
the Indian economy. At the same time, it had emerged as a large employer, and a debate had
ensued about the nationalization of the banking industry. Indira Gandhi, then Prime Minister of
India, expressed the intention of the Government of India in the annual conference of the All
India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation." The
meeting received the paper with enthusiasm.

Thereafter, her move was swift and sudden. The Government of India issued an ordinance
and nationalised the 14 largest commercial banks with effect from the midnight of July 19,
1969. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of
political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the
Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received
the presidential approval on 9 August 1969.
A second dose of nationalization of 6 more commercial banks followed in 1980. The stated
reason for the nationalization was to give the government more control of credit delivery. With
the second dose of nationalization, the Government of India controlled around 91% of the
banking business of India. Later on, in the year 1993, the government merged New Bank of
India with Punjab National Bank. It was the only merger between nationalized banks and
resulted in the reduction of the number of nationalised banks from 20 to 19. After this, until the
1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of
the Indian economy.
Liberalization

In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization,

licensing a small number of private banks. These came to be known as New Generation tech-
savvy banks, and included Global Trust Bank (the first of such new generation banks to be set
up), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI
Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of
India, revitalized the banking sector in India, which has seen rapid growth with strong
contribution from all the three sectors of banks, namely, government banks, private banks and
foreign banks.

The next stage for the Indian banking has been set up with the proposed relaxation in the norms
for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights
which could exceed the present cap of 10%,at present it has gone up to 74% with some
restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time, were used
to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning. The new wave
ushered in a modern outlook and tech-savvy methods of working for traditional banks.All this
led to the retail boom in India. People not just demanded more from their banks but also received
more.

Currently (2007), banking in India is generally fairly mature in terms of supply, product range
and reach-even though reach in rural India still remains a challenge for the private sector and
foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to
have clean, strong and transparent balance sheets relative to other banks in comparable
economies in its region. The Reserve Bank of India is an autonomous body, with minimal
pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage
volatility but without any fixed exchange rate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-especially in
its services sector-the demand for banking services, especially retail banking, mortgages and
investment services are expected to be strong. One may also expect M&As, takeovers, and asset
sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak
Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed
to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any
stake exceeding 5% in the private sector banks would need to be vetted by them.

In recent years critics have charged that the non-government owned banks are too aggressive in
their loan recovery efforts in connection with housing, vehicle and personal loans. There are
press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide.
Introduction

The banking section will navigate through all the aspects of the Banking System in India. It will
discuss upon the matters with the birth of the banking concept in the country to new players
adding their names in the industry in coming few years.

The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA) and
top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three
separate heads with one page dedicated to each bank.

However, in the introduction part of the entire banking cosmos, the past has been well explained
under three different heads namely:

 History of Banking in India

 Nationalization of Banks in India
 Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in India. Government took
major step in the 1969 to put the banking sector into systems and it nationalized 14 private banks
in the mentioned year. This has been elaborated in Nationalization Banks in India. The last but
not the least explains about the scheduled and unscheduled banks in India. Section 42 (6) (a) of
RBI Act 1934 lays down the condition of scheduled commercial banks. The description along
with a list of scheduled commercial banks are given on this page. 
Banks In India

In India the banks are being segregated in different groups. Each group has their own benefits
and limitations in operating in India. Each has their own dedicated target market. Few of them
only work in rural sector while others in both rural as well as urban. Many even are only catering
in cities. Some are of Indian origin and some are foreign players.

All these details and many more is discussed over here. The banks and its relation with the
customers, their mode of operation, the names of banks under different groups and other such
useful informations are talked about.

One more section has been taken note of is the upcoming foreign banks in India. The RBI has
shown certain interest to involve more of foreign banks than the existing one recently. This step
has paved a way for few more foreign banks to start business in India.
Banking services in India

With years, banks are also adding services to their customers. The Indian banking industry is
passing through a phase of customers market. The customers have more choices in choosing
their banks. A competition has been established within the banks operating in India.

With stiff competition and advancement of technology, the services provided by banks has
become more easy and convenient. The past days are witness to an hour wait before withdrawing
cash from accounts or a cheque from north of the country being cleared in one month in the
south.

This section of banking deals with the latest discovery in the banking instruments along with the
polished version of their old systems. 
Easy Banking

This section is fully dedicated to the Tech Banking. A decade before, it was tough to belief that
banking secctor will be at a finger tip. Now its possible. A mobile hand set with a connection is
the only instrument needed to make a gateway to your banking transaction, the latest innovation
of technology.

Apart from the Mobile Banking, including of SMS Banking, Net Banking and ATMs are the
major steps taken by the banks in India towards modernisation. With all these devises and
systems, there is a complete freedom to experience.

Check your account, transfer your fund, make payments and what more, do anything of
everything what has been followed in physical banking since ages. But this time no standing for
hours in front of cash counter and no time boundation in withdrawing your own money.
Banking Services for NRIs in India

Almost all the Indian Banks provide services to the NRIs. There are different types of accounts
for them. They are:

 Non-Resident (Ordinary) Account - NRO A/c

 Non-Resident (External) Rupee Account - NRE A/c
 Non-Resident (Foreign Currency) Account - FCNR A/c

An Indian resident who is earning forign exchange can also maintain Foreign Currency account
in the country with an authorised dealer bank but only to the maximum limit of 50% of such
foreign exchange earnings under the Exchange Earners Foreign Currency Account (EEFC)
Scheme.

Some of the FAQs given below will make it easy to understand the services provided by banks to
the NRIs.

FAQ for NRIs

a. What are the special features of each bank account?

b. Can Non Resident accounts be opened/ operated by the Power of Attorney holder in
India, on behalf of the non-resident?

c. What happens to the status of these accounts when the non-resident holder becomes a
person, resident in India?

d. What are the various facilities available to NRIs/OCBs?

e. Are NRIs permitted to send remittances outside India out of the assets in India that are
inherited by them?

f. Can a person of Indian origin acquire any immovable property in India by way of
inheritance?

g. Can NRIs and Overseas Corporate Bodies (OCBs) invest in India?

h. What is the extent and application of Foreign Exchange Management Act (FEMA)?

i. What is the penalty for contravention of FEMA?

j. Can a person of Indian origin resident outside India gift properties acquired earlier in
terms of the provisions of FERA/FEMA?

k. Can an NRI account be opened in the name of crew members of shipping companies?
a. What are the special features of each bank account? 

The special features are as under:

NRO A/c.: The funds, credited to this account, cannot be repatriated outside India in
foreign exchange, without prior permission of the Reserve Bank of India. Interest, earned
is eligible for repatriation outside India, net of Indian taxes. The remittance of interest
(net of taxes) will be permitted by the authorised dealer who maintains the account, if the
account holder makes an application to the authorised dealer, in the prescribed form. No
RBI permission is required for remittance of interest.

NRE A/c.: The funds, standing to the credit of this account, as well as interest earned
thereon, are remittable outside India in free foreign exchange, without permission of the
RBI. The interest income is not subject to Indian Income-tax. Credits to the accounts
should be in the form of remittance in foreign exchange from outside India, as well as
other funds, which are eligible to be remitted outside India, in free foreign exchange.
Funds, emanating from local sources, are not eligible to be credited to these accounts,
unless these funds are otherwise remittable outside India, in terms of the existing
Exchange Control Regulations.

FCNR A/c.: These accounts can be opened in four foreign currencies:

o Pounds Sterling;
o US Dollars;
o Japanese Yen;
o Euro.

For the purpose of opening an account, remittance in foreign exchange, in the same
currency, should be received in India. The accounts can be opened only as fixed deposits,
with a minimum maturity of one year and, a maximum maturity of three years. The
principal, as well as interest, earned on these accounts, is remittable outside India, in the
same currency or, in other convertible currency, as desired by the account holder. The
interest, earned on these deposits, is exempt from Indian Income-tax.

b. Can Non Resident accounts be opened/ operated by the Power of Attorney holder in
India, on behalf of the non-resident?

The accounts cannot be opened by the Power of Attorney holder in India. However, the
latter can operate the accounts for the purpose of local payments to be made on behalf of
the non-resident account holder. The Power of Attorney holder is not permitted to make
gifts from these accounts and, is not allowed to make remittances outside India.

c. What happens to the status of these accounts when the non-resident holder becomes
a person, resident in India?

The accounts are to be re-designed as resident accounts, when the non-resident account
holder becomes a person, resident in India. In the case of fixed deposits opened by the
 account holder, before becoming resident in India, the contracted rate of interest will be
paid till maturity of the deposits. Similarly, FCNR deposits will be eligible to be held in
respective currencies till maturity of the deposits, even after the non-resident holder
become a resident in India. He will, however, cease to get tax exemption on interest on
the erstwhile deposits (NRE/FCNR deposits), after he becomes resident in India. In
certain situations, it might be advisable for the account holder to convert the account to a
Resident Foreign Currency Account Deposit (RFC)

d. What are the various facilities available to NRIs/OCBs?

The facilities available to NRIs/OCBs for making investment in India are as follows:
o opening and maintenance of bank accounts in India;

o investment in shares and securities of Indian companies, government securities,

units of domestic mutual funds and ,deposits with Indian companies/firms;

o investment in immovable properties in India;

o investment in proprietorship/partnership concerns in India.

e. Are NRIs permitted to send remittances outside India out of the assets in India that
are inherited by them? 

Yes. RBI will consider application from NRIs for remittance of assets, inherited by them
in India. Such remittance may be permitted up to US$ 100,000 per year.

f. Can a person of Indian origin acquire any immovable property in India by way of
inheritance? 

A person of Indian origin, resident outside India, may acquire any immovable property in
India by way of inheritance from a person, resident outside India, who had acquired such
property in accordance with the provisions of foreign exchange law in force at the time of
acquisition by him or the provisions of Foreign Exchange Management (Acquisition and
Transfer of Immovable Property in India) Regulations, 2000. Immovable property, by
way of inheritance, can also be acquired by a person of Indian origin resident outside
from a person resident in India.

g. Can NRIs and Overseas Corporate Bodies (OCBs) invest in India? 

The Government of India has adopted a liberal policy, with respect to investments by
NRIs and OCBs in India. Such investments are allowed, both, through the RBI route and
also through the Government route, i.e., through the Foreign Investment Promotion
Board (FIPB) NRIs and OCBs are permitted to invest up to 100% equity in real estate
development activity and civil aviation sectors. Investment, made by the NRIs and OCBs,
are fully repatriable, except in the case of real estate, which has a 3 year lock-in period on
 original investment and, 16% cap on dividend repatriation. For those proposals that do
not qualify under the automatic route, Government approval is granted through FIPB.

h. What is the extent and application of Foreign Exchange Management Act (FEMA)?

FEMA extends to the whole of India. It also applies to all branches, offices and agencies
outside India, owned or controlled by a person, resident in India. It also applies to any
contravention, there under, committed in or, outside India, by any person to whom the
Act applies.

i. What is the penalty for contravention of FEMA?

Any person, contravening FEMA, shall be liable, upon adjudication, to a penalty up to

three times the sum involved in such contravention, where such amount is quantifiable, or
up to Rupees Two hundred thousand, where the amount is not quantifiable. In addition,
where such contravention is a continuing one, the person will be liable to further penalty,
which may extend to Rupees Five thousand for every day after the first day, during which
the contravention continues.

j. Can a person of Indian origin resident outside India gift properties acquired earlier
in terms of the provisions of FERA/FEMA?

Yes. A person of Indian origin resident outside India may transfer residential or
commercial property in India by way of gift to a person resident in India or to a person
resident outside India who is a citizen of India or to a person of Indian origin resident
outside India. A Person of Indian origin resident outside India may also transfer by way
of gift agriculture land/farm house/plantation property in India to a person resident in
India who is a citizen of India.

k. Can an NRI account be opened in the name of crew members of shipping

companies?

Yes, if their posting is not based in India and they derive their income from other country
in foreign currency.
Proxy Banking in India

Indian villages were miles away from mutual funds, insurance and even equity trading. Thanks
to Internet Kiosk and the ATM duo which has made it possible for rural India. This kiosk has
been set up by ICICI Bank in partnership with network n-Logue Communications in remote
villages of Southern part of the country. This is known as Proxi Banking. With the help of fibre
optic cables, this kiosk works on wireless in local loop technology.

Reasons for setting-up of Proxi Banking

 58% of rural households still do not have bank accounts.

 Only 21% of rural households have access to credit from a formal source.

 70% of marginal farmers do not have deposit account.

 87% households have no formal credit.

 Only 1% rural househlods rely on a loan from a financial intermediary. · The loans take
between 24 to 33 weeks to get sanctioned.

 Consumers bribe officials to get loans approved which varies between 10 and 20 per cent
of the loan amount.

 Branch banking in rurals is a loss-making.

Benefits to rurals

 Small loans given for buying buffaloes.

 Loans for setting up a tea shop.
 Life and non-life insurance provided.
 Weather insurance given to farmers.
 Insurance policies sold to farmers like groundnut, castor, soya, paddy crop, etc.

The Proxy Banking is an innovative approach to rural lending and will add to the government's
expanding base of kisan credit cards and the good old guidelines for agricultural lending.
Fact Files of Banks in India

The first, the oldest, the largest, the biggest, get all such types of informations about Banking in
India in this section.

The first bank in India to be given an ISO Certification Canara Bank

The first bank in Northern India to get ISO 9002 certification for their Punjab and Sind
selected branches Bank

The first Indian bank to have been started solely with Indian capital Punjab National
Bank

The first among the private sector banks in Kerala to become a scheduled South Indian Bank
bank in 1946 under the RBI Act

India's oldest, largest and most successful commercial bank, offering the State Bank of India
widest possible range of domestic, international and NRI products and
services, through its vast network in India and overseas

India's second largest private sector bank and is now the largest scheduled The Federal Bank
commercial bank in India Limited

Bank which started as private shareholders banks, mostly Europeans Imperial Bank of
shareholders India

The first Indian bank to open a branch outside India in London in 1946 Bank of India,
and the first to open a branch in continental Europe at Paris in 1974 founded in 1906 in
Mumbai

The oldest Public Sector Bank in India having branches all over India and Allahabad Bank
serving the customers for the last 132 years

The first Indian commercial bank which was wholly owned and managed Central Bank of
by Indians India

Bank of India was founded in 1906 in Mumbai. It became the first Indian bank to open a branch
outside India in London in 1946 and the first to open a branch in continental Europe at Paris in
1974.
 List of banks in India
====Central bank ==== - Central bank and supreme monetary authority.

 1. Nationalized banks (Public Sector)

 2. Private Banks
 3.Scheduled Urban Co-operative Banks
 4. Non-Scheduled Urban Co-operative Banks
 5. Indian Banks Abroad
 6. Foreign banks
6.1 Foreign Banks with Representative Offices in India

1.Nationalized banks (Public Sector)

 1. Allahabad Bank

 2. Andhra Bank

 3. Bank of Baroda

 4. Bank of India

 5. Bank of Maharashtra

 6. Canara Bank

 7. Central Bank of India

 8. Corporation Bank

 9. Dena Bank

 10. IDBI Bank

 11. Indian Bank

 12. Indian Overseas Bank

 13. Oriental Bank of Commerce

 14. Punjab National Bank

 15. Punjab & Sind Bank

 16. Syndicate Bank

 17. Union Bank of India

 18. UCO Bank

 19. United Bank of India

 20. Vijaya Bank
====SBI & associates (Nationalized)=India|State Bank of India (SBI)]]

 22. State Bank Bikaner & Jaipur

 23. State Bank of Hyderabad

 24. State Bank of Mysore

 25. State Bank of Patiala

 26. State Bank of Travancore

 State Bank of Indore - (merged with SBI in 2010)

 State Bank of Saurashtra - (merged with SBI in 2008)

2. Private Banks

 Axis Bank (Formerly UTI Bank)

 HDFC Bank

 ICICI Bank(Siddhashila)

 Kotak Mahindra Bank

 Karnataka Bank

 Yes Bank

 IndusInd Bank

 The Nainital Bank Ltd.

 ING Vysya Bank

 South Indian Bank

3. Scheduled Urban Co-operative Banks
List of Scheduled Urban Co-operative Bank as on 31-3-2009 as per RBI [1]

Sapthagiri Coop. Bank Chittoor AP India

Bank Main Location

Rani Laxmibai urban Co-op Bank, Jhansi

Ahmedabad Mercantile Co-Op Bank Ltd. Ahmedabad

Kalupur Commercial Coop.Bank Ltd. Kalupur

Madhavpura Mercantile Co-Op Bank Ltd. Madhavpur

Mehsana Urban Co-Op Bank Ltd. Mehsana

Nutan Nagarik Sahakari Bank Ltd. Ahmedabad

Rajkot Nagarik Sahakari Bank Ltd. Rajkot

almora urban co-operative bank ltd. almora

South Indian Bank Tirichur

Sardar Bhiladwala Pardi Peoples Coop Bank Ltd. Bulsar

Surat Peoples Coop Bank Ltd. Surat

Amanath Co-operative Bank Ltd. Bangalore

 Andhra
Andhra Pradesh Mahesh Co-Op Urban Bank Ltd.
Pradesh

Charminar Coop.Urban Bank Ltd. Hyderabad

Vasavi Coop Urban Bank LImited. Hyderabad

Indian Mercantile Co-op Bank Ltd. Lucknow

Kallappanna Awade Ichalkaranji Janata Sahakari Bank

Ichalkaranji
Ltd.

Abhyudaya Co-operative Bank Ltd. Mumbai

Bangalore city cooperative bank. Bengaluru

Bassein Catholic Co-operative Bank Limited. Vasai

Bharat Co-operative Bank (Mumbai) Ltd. Mumbai

Bharati Sahakari Bank Limited. Pune

Bombay Mercantile Co-operative Bank Limited. Mumbai

Citizen Credit Co-operative Bank Ltd. Dadar

Cosmos Co-operative Urban Bank Ltd. Pune

Dombivli Nagari Sahakari Bank Ltd. Dombivli

Goa Urban Co-operative Bank Limited. Goa

Greater Bombay Co-operative Bank Limited. Mumbai

Jalgaon Janata Sahakari Bank Ltd. Jalgaon

Janakalyan Sahakari Bank Ltd. Mumbai

Janalaxmi Co-operative Bank Ltd. Mumbai

Janata Sahakari Bank Ltd. Pune

The Karnataka State Co-Operative Apex Bank Ltd Bengaluru

Kalyan Janata Sahakari Bank Ltd. Kalyan

Karad Urban Co-operative Bank Ltd. Karad

Mahanagar Co-operative Bank Ltd. Mumbai

Mapusa Urban Co-operative Bank of Goa Ltd. Mapusa

Nagar Urban Co-operative Bank Ltd. Ahmednagar

Nasik Merchant's Co-operative Bank Ltd. Nasik

New India Co-operative Bank Ltd. Mumbai

NKGSB Co-operative Bank Ltd. Mumbai

Parsik Janata Sahakari Bank Ltd. Thane

Pravara Sahakari Bank Ltd. Ahmednagar

Punjab & Maharashtra Co-operative Bank Ltd. Mumbai

Rupee Co-operative Bank Ltd. Pune

Sangli Urban Co-operative Bank Ltd. Sangli

Saraswat Co-operative Bank Ltd. Mumbai

Shamrao Vithal Co-operative Bank Ltd. Mumbai

Solapur Janata Sahakari Bank Ltd. Solapur

Thane Bharat Sahakari Bank Ltd. Thane

Thane Janata Sahakari Bank Ltd. Thane

The Kapol Co-operative Bank Ltd. Mumbai

Zoroastrian Co-operative Bank Ltd. Mumbai

Nagpur Nagrik Sahakari Bank Ltd. Nagpur

Shikshak Sahakari Bank Ltd. Nagpur

The Akola Janata Com.Co-operative Bank Ltd. Akola

The Akola Urban Co-operative Bank Ltd. Akola

The Khamgaon Urban Co-operative Bank Ltd. Khamgaon

Cuttack urban Co-operative Bank Ltd.

Cuttack Gramya Bank. Cuttack
[ [Cuttack] ]

4. Non-Scheduled Urban Co-operative Banks

List of Non-Scheduled Urban Co-operative Bank as on 31-3-2010 as per RBI [2]

Bank Main Location

Janaseva Sahakari Bank Ltd., Pune

Vishweshwar Sahakari Bank

Pune
Ltd.,

Sadhna Sahakari Bank Ltd., Pune

Sanmitra Sahakari Bank Ltd., Pune

5. Indian Banks Abroad
List of subsidiaries of Indian Banks abroad as on November 30, 2007

Name of the Bank Name of the Centre

SBI (Canada) Ltd. Toronto Vancouver,Mississauga

Los Angeles, Artesia,San Jose (Silicon

SBI (California) Ltd.
Valley)

SBI Finance Inc. Delaware U.S.A.

SBI International (Mauritius) (Off-shore Bank)Mauritius

Bank of Baroda Uganda) Ltd. Uganda

Bank of Baroda(Kenya) Ltd. Kenya

Bank of Baroda (U.K.) Nominee Ltd. London, UK

(Converted into Restricted Licensed Bank)

BOB (Hong Kong)Ltd.
Hongkong

Bank of India Finance(Kenya) Ltd. Kenya

IOB Properties Pte Ltd. Singapore

Bank of Baroda(Botswana) Ltd. Gaborone Botswana

Bank of Baroda(Guyana)Inc. Georgetown Guyana (South America)

ICICI Bank UK Ltd London (UK)

ICICI Bank Canada Ltd Toronto (Canada)

Bank of Baroda (Tanzania) Tanzania

Bank of Baroda (Dubai, Abu Dhabi, Ras Al Khaimah,

United Arab Emirates
Deira,Dammam, Salalah, Al Ain)

Bank of Baroda Sultanate of Oman, Muscat,

Bank of Baroda Belgium, Brussels

ICICI Bank Eurasia LLC Russia

PT Bank Indomonex Indonesia

Indian Ocean International Bank Ltd. (IOIB) Mauritius, Port Louis

Punjab National Bank International Limited (PNBIL) United Kingdom, London

Bank of Baroda (Trinidad and Tobago) Limited Trinidad & Tobago

PT Bank Swadesi Tbk Indonesia

Bank of Baroda (Trinidad and Tobago) Limited Trinidad & Tobago

7. Foreign banks
Banks with branches in India.[4]

 ABN AMRO Bank N.V. - Royal Bank of Scotland

 Abu Dhabi Commercial Bank Ltd

 American Express Bank

 Antwerp Diamond Bank

 Arab Bangladesh Bank

 Bank International Indonesia

 Bank of America

 Bank of Bahrain & Kuwait

 Bank of Ceylon

 Bank of Nova Scotia

 Bank of Tokyo Mitsubishi UFJ

 Barclays Bank

 BNP Paribas

 Calyon Bank

 ChinaTrust Commercial Bank

 Citibank

 DBS Bank

 Deutsche Bank

 HSBC (Hongkong & Shanghai Banking Corporation)

 JPMorgan Chase Bank

 Krung Thai Bank

 Mashreq Bank

 Mizuho Corporate Bank

 Oman International Bank

 Shinhan Bank

 Société Générale

 Sonali Bank

 Standard Chartered Bank

 State Bank of Mauritius

 UBS
  VTB [1]

7. (i) Foreign Banks with Representative Offices in India

American Banks

 mayur coprative bank limited

Nationalised, Public and Private Banks of India

The page consists of the list of banks operating from india. The list contains both Private and Public sector banks.

Allahabad Bank Deutsche Bank Nedungadi Bank

Andhra Bank Dhanalakshmi Bank
Punjab and Maharashtra Co-Operative
Bank Ltd.
Bank of Baroda Export-Import Bank of India Punjab National Bank
Bank of Madura Federal Bank Limited South Indian Bank
Bank of Maharashtra Global Trust Bank State Bank of Hyderabad
Bank of Punjab ICICI Bank State Bank of India
Canara Bank IDBI State Bank of Travancore
Catholic Syrian Bank  Indian Bank Syndicate Bank
Centurion Bank Indian Overseas Bank Times Bank
Citibank IndusInd Bank Ltd. UCO Bank
Corporation Bank Lakshmi Vilas Bank Union Bank of India
Dena Bank Lord Krishna Bank Vysya Bank
Development Credit Mandvi Co-operative Bank Oriental Bank of Commerce 
Bank Ltd. Ltd.
Nationalisation of Banks in India –

Introduction

After independence the Government of India adopted planned economic development for the
country. Accordingly, five year plans came into existence since 1951. This economic planning
basically aimed at social ownership of the means of production. However, commercial banks
were in the private sector those days. In 1950-51 there were 430 commercial banks. The
Government had some social objectives of planning. These commercial banks failed helping the
government in attaining these objectives. Thus, the government decided to nationalize 14 major
commercial banks on 19th July, 1969. All commercial banks with a deposit base over Rs.50
crores were nationalized. It was considered that banks were controlled by business houses and
thus failed in catering to the credit needs of poor sections such as cottage industry, village
industry, farmers, craft men, etc. The second dose of nationalization came in April 1980 when
banks were nationalized.

Objectives Behind Nationalization of Banks in India

The nationalization of commercial banks took place with an aim to achieve following major
objectives.

1. Social Welfare: It was the need of the hour to direct the funds for the needy and required
sectors of the Indian economy. Sector such as agriculture, small and village industries were in
need of funds for their expansion and further economic development.

2. Controlling Private Monopolies: Prior to nationalization many banks were controlled by

private business houses and corporate families. It was necessary to check these monopolies in
order to ensure a smooth supply of credit to socially desirable sections.

3. Expansion of Banking: In a large country like India the numbers of banks existing those days
were certainly inadequate. It was necessary to spread banking across the country. It could be
done through expanding banking network (by opening new bank branches) in the un-banked
areas.

4. Reducing Regional Imbalance: In a country like India where we have a urban-rural divide; it
was necessary for banks to go in the rural areas where the banking facilities were not available.
In order to reduce this regional imbalance nationalization was justified:

5. Priority Sector Lending: In India, the agriculture sector and its allied activities were the
largest contributor to the national income. Thus these were labeled as the priority sectors. But
unfortunately they were deprived of their due share in the credit. Nationalization was urgently
needed for catering funds to them.
6. Developing Banking Habits: In India more than 70% population used to stay in rural areas. It
was necessary to develop the banking habit among such a large population.

Demerits, Limitations - Bank Nationalization in India

Though the nationalization of commercial banks was undertaken with tall objectives, in many
senses it failed in attaining them. In fact it converted many of the banking institutions in the loss
making entities. The reasons were obvious lethargic working, lack of accountability, lack of
profit motive, political interference, etc. Under this backdrop it is necessary to have a critical
look to the whole process of nationalization in the period after bank nationalization.

The major limitations of the bank nationalization in India are:-

1. Inadequate banking facilities: Even though banks have spread across the country; still many
parts of the country are unbanked. Especially in the backward states such as the Uttar Pradesh,
Madhya Pradesh, Chhattisgarh and north-eastern states of India.

2. Limited resources mobilized and allocated: The resources mobilized after the
nationalization is not sufficient if we consider the needs of the Indian economy. Some times the
deposits mobilized are enough but the resource allocation is not as per the expansions.

3. Lowered efficiency and profits: After nationalization banks went in the government sector.
Many times political forces pressurized them. Banking was not done on a professional and
ethical grounds. It resulted into lower efficiency and poor profitability of banks.

4. Increased expenditure: Due to huge expansion in a branch network, large staff administrative
expenditure, trade union struggle, etc. banks expenditure increased to dangerous levels.

5. Political and Administrative Inference: Many public sector banks badly suffered due to the
political interference. It was seen in arranging loan meals. It ultimately resulted in huge non-
performing assets (NPAs) of these banks and inefficiency.

These are several limitations faced by the bank nationalization in India.

Apart from this there are certain other limitations as well, such as weak infrastructure, poor
competitiveness, etc.

But after Economic Reform of 1991, the Indian banking industry has entered into the new
horizons of competitiveness, efficiency and productivity. It has made Indian banks more vibrant
and professional organizations, removing the bad days of bank nationalization.