General Knowledge - Indian Economy - Discussion

After independence the Government of India(GOI) adopted planned economic development for the country(India). 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 of India 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.

Nationalizaton of banks started in 1955, with sbi being the first bank to be nationlsed. Then in 1960, its seven subsidiaries (now six) were also nationlised. At present, the 27 nationlised banks are (remember state bank of saurastra is now merged with sbi) Allahabad Bank.

Andhra Bank.
Bank of Baroda.
Bank of India.
Bank of Maharashtra.
Canara Bank.
Central Bank of India.
Corporation Bank.
Dena Bank.
Indian Bank.
Indian Overseas Bank.
Oriental Bank of Commerce.
Punjab and Sind Bank.
Punjab National Bank.
State Bank of Bikaner & Jaipur.
State Bank of Hyderabad.
State Bank of India (SBI).
State Bank of Indore.
State Bank of Mysore.
State Bank of Patiala.
State Bank of Saurashtra.
State Bank of Travancore.
Syndicate Bank.
UCO Bank.
Union Bank of India.
United Bank of India.
Vijaya Bank.
IDBI Bank.

In 1960, the State Banks of India was given control of eight state-associated banks under the State Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate banks. In 1969 the Indian government nationalised 14 major private banks. In 1980, 6 more private banks were nationalised.

27 nationalized banks in India right now.

The second nationalization of commercial banks was held in 1980. They were Vijaya Bank Limited, Punjab and Sind Bank Limited, Oriental Bank of Commerce Limited, New Bank of India Limited, Corporation Bank Limited, and Andhra Bank Limited.

First of all nationalised RBI on 1.1.1949 after it SBI stabilised on 1.7.1955 and 14 banks nationalised on 19 July 1969 in first phase & 6 Banks nationalised on April 1980. Total of these 20. So 7 banks are when nationalised?

@Ramya.
You are right that there are 27 nationalized banks in India but the last bank in the list which is "IDBI Bank" is a private bank. So the 1 you missed is Allahabad bank and rest all are right.

At frist time based on the recommendations of Hazare committee 14 banks were nationalised in 1969, second time in 1982 again nationalisation of banks was happend in which 6 banks were nationalised.

Nationalisation took place in two phases, with a first round in 1969 covering 14 banks followed by another in 1980 covering 7 banks. Currently there are 27 nationalised commercial banks.

Please tell me that how many bank are total nationalized and which bank is 1st nationalized, and also answer me that how many private bank in India, and which bank is largest in India?

@Ramya, at present there are 5 subsidiary/associate banks of SBI and SBI has also said that it will consider merger of five associate banks in the second quarter of fiscal.