Public sector banks in India

Public Sector Undertakings (Banks) are a major type of government-owned banks in India, where a majority stake (i.e., more than 50%) is held by the Ministry of Finance (India) of the Government of India or State Ministry of Finance of various State Governments of India. The shares of these government-owned-banks are listed on stock exchanges. Their main objective is social welfare.

Emergence of public sector banks
The Central Government entered the banking business with the nationalization of the Imperial Bank of India in 1955. A 60% stake was taken by the Reserve Bank of India and the new bank was named State Bank of India. The seven other state banks became subsidiaries of the new bank in 1959 when the State Bank of India (Subsidiary Banks) Act, 1959 was passed by the Union government.

The next major government intervention in banking took place on 19 July 1969 when the Indira government nationalised an additional 14 major banks. The total deposits in the banks nationalised in 1969 amounted to 50 crores. This move increased the presence of nationalised banks in India, with 84% of the total branches coming under government control.

Before the economic liberalisation
The share of the bank sector held by the public banks continued to grow through the 1980s, and by 1991 public sector banks accounted for 90% of the banking sector. A year later, in March, 1992, the combined total of branches held by public sector banks was 60,646 across India, and deposits accounted for ₹1,10,000 crore. The majority of these banks was profitable, with only one out of the 21 public sector banks reporting a loss.

Liberalisation in the 2000s
The nationalised banks reported a combined loss of ₹1160 crores. However, the early 2000s saw a reversal of this trend, such that in 2002-03 a profit of ₹7780 crores by the public sector banks: a trend that continued throughout the decade, with a ₹16856 crore profit in 2008–2009.

Mergers
The consolidation of SBI-associated banks started first by State Bank of India merging its subsidiary State Bank of Saurashtra with itself on 13 August 2008. Thereafter it merged State Bank of Indore with itself on August 27, 2010. The remaining subsidiaries, namely 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.


 * Vijaya Bank and Dena Bank were merged into Bank of Baroda in 2018.
 * IDBI Bank was categorised as a private bank with effect from January 2019 on account of LIC acquiring the shares from GoI.

On 30 August 2019, Minister of Finance Nirmala Sitharaman announced the government's plan for further consolidation of public sector banks. The mergers took effect from 1 April 2020.
 * Allahabad Bank was merged into Indian Bank.
 * Oriental Bank of Commerce and United Bank of India were merged into Punjab National Bank.
 * Andhra Bank and Corporation Bank were merged into Union Bank of India.
 * Syndicate Bank was merged into Canara Bank.

Public Sector Undertakings (Banks)

 * Nationalized Banks (Government Shareholding %, as at end-March 2023)


 * 1) State Bank of India (57.59%)
 * 2) Canara Bank (62.93%)
 * 3) Bank of Baroda (63.97%)
 * 4) Punjab National Bank (73.15%)
 * 5) Indian Bank (79.86%)
 * 6) Bank of India (81.41%)
 * 7) Union Bank of India (76.99%)
 * 8) Bank of Maharashtra (90.90%)
 * 9) Central Bank of India (93.08%)
 * 10) UCO Bank (95.39%)
 * 11) Indian Overseas Bank (96.38%)
 * 12) Punjab and Sind Bank (98.25%)

Presently there are 43 Regional Rural Banks in India Since 1 April 2020.

Andhra Pradesh


 * Andhra Pragathi Grameena Bank
 * Chaitanya Godavari Gramin Bank
 * Saptagiri Gramin Bank

Arunachal Pradesh
 * Arunachal Pradesh Rural Bank

Assam
 * Assam Gramin Vikash Bank

Bihar Gramin Bank]]
 * [[Bihar Gramin Bank| Dakshin Bihar
 * Uttar Bihar Gramin Bank

Chhattisgarh
 * Chhattisgarh Rajya Gramin Bank

Gujarat
 * Baroda Gujarat Gramin Bank
 * Saurashtra Gramin Bank

Haryana
 * Sarva Haryana Gramin Bank

Himachal Pradesh
 * Himachal Pradesh Gramin Bank

Jammu and Kashmir
 * J&K Grameen Bank
 * Ellaquai Dehati Bank

Jharkhand
 * Jharkhand Rajya Gramin Bank

Karnataka
 * Karnataka Gramin Bank
 * Karnataka Vikas Grameena Bank

Kerala
 * Kerala Gramin Bank

Madhya Pradesh
 * Madhyanchal Gramin Bank
 * Madhya Pradesh Gramin Bank

Maharashtra
 * Maharashtra Gramin Bank
 * Vidharbha Konkan Gramin Bank

Manipur
 * Manipur Rural Bank

Meghalaya
 * Meghalaya Rural Bank

Mizoram
 * Mizoram Rural Bank

Nagaland
 * Nagaland Rural Bank

Odisha
 * Odisha Gramya Bank
 * Utkal Grameen Bank

Puducherry
 * Puduvai Bharathiar Grama Bank

Punjab
 * Punjab Gramin Bank

Rajasthan
 * Baroda Rajasthan Kshetriya Gramin Bank
 * Rajasthan Marudhara Gramin Bank

Tamil Nadu
 * Tamil Nadu Grama Bank

Telangana
 * Telangana Grameena Bank
 * Andhra Pradesh Grameena Vikas Bank

Tripura
 * Tripura Gramin Bank

Uttar Pradesh Bank]] Gramin Bank]] Uttarakhand
 * [[Gramin Bank of Aryavart|Aryavart
 * [[Sarva UP Gramin Bank|Prathama UP
 * Baroda UP Bank
 * Uttarakhand Gramin Bank

West Bengal
 * Paschim Banga Gramin Bank
 * Bangiya Gramin Vikash Bank
 * Uttarbanga Kshetriya Gramin Bank