Banks in India have long been a vital part of the country's economic development. They have always been key to the growth of industry and commerce. The primary job of banks is to provide financial services to individuals and businesses for a number of purposes.
Public sector banks, private banks, foreign banks, regional rural banks, and cooperative banks all banks are available in India. However, we will focus on private and public-sector banks in this article.
You're probably wondering what Private Sector Banks (PSB) and Public Sector Banks (PSU) are & the sectors are classified into public & the private sector on the basis of what?.
Let me make it easy for you to understand.
Public Sector Banks (PSU)
Banks in the public sector are those in which the government holds more than half of the stock. The government is in charge of these banks' financial standards. These banks are also known as nationalized or Government banks. Because the government owns public sector banks, most depositors believe their money is secure there. As a result, most public-sector banks have a significant customer base.
In India, public sector banks are notable for paying high-interest rates on deposits while charging low-interest rates on loans. Many great career opportunities are available in PSU's as full-time employment is guaranteed here for its staff. Furthermore, when their employees retire, they are entitled to a pension. They cater to a large number of clients. As they give services to India's rural areas, they have reached every part of the country. They have a number of sites where they provide financial services.
The bank where practically every family has a bank account is the best example of a public sector bank. I'm referring to none other than our own State Bank of India (SBI).
Private Sector Banks (PSB)
Private sector banks are a type of banking in India that aims to provide privileged services to its customers. Private sector banks are financial institutions owned and operated mostly by high-net-worth individuals and corporations.
Private banks were recognized when the LPG policy was adopted in the 1990s. The two oldest and most well-known private banks in India are Axis Bank and IndusInd Bank.
When it comes to private sector banks, it is impossible to overlook the fact that they give prompt service to their customers. These banks also provide customized services based on their customer's financial needs.
Consumers can easily approach private-sector banks and get things done swiftly because of their streamlined management systems. Quick financial choices are possible with private sector banks.
Here I have mentioned all bank names with details. I have also mentioned details about banks that merged recently.
List of Public Sector Banks in India (PSU)
1. State Bank of India
It is one of the best Indian government banks. It has a total of 24,000 branches throughout India. The bank has 58,559 ATMs spread across India. The company's headquarters are in Mumbai. It was founded on July 1st, 1955.
SBI has a strong history and a legacy dating back over 200 years, making it one of the most trusted banks among Indians.
With a quarter of the Indian banking market, SBI services over 45 crore consumers. SBI is the world's 43rd largest bank. It is one of the best banks where you can find a great job as it provides security.
Visit State Bank of India Website
2. Punjab National Bank (With the Merger of Oriental Bank of Commerce and United Bank of India)
Punjab National Bank now has 11,437 branches across India. There is a total of 8,985 ATMs in India that have opened. Its headquarters are located in New Delhi.
The Punjab National Bank (PNB) began operations in Lahore on April 12, 1895. It was undivided India at the time. It is India's first Swadeshi bank.
Visit Punjab National Bank Website
3. The Bank of Baroda (formed by the merger of Dena Bank and Vijaya Bank)
It has 8,581 branches across India. 10318 ATMs in India have been opened so far. Vadodara is the bank's headquarters. On July 20, 1908, the Bank of Baroda (BOB) was founded.
The government announced the merger of Vijaya Bank and Dena Bank with Bank of Baroda under the “Alternative Mechanism” scheme. It came into effect on April 1, 2019.
Visit the Bank of Baroda Website
4. Canara Bank (with the merger of Syndicate Bank)
Canara Bank is a public sector bank in India. There are 10391 branches of the bank throughout India. It has opened a total of 12829 ATMs in India. Bengaluru is where the company's headquarters are located. Shri Ammembal Subba Rao Pai, a remarkable thinker, and philanthropist, created Canara Bank in July 1906.
In 1969, it was designated as a national player in terms of geographic reach and clientele groups. Canara Bank is now a leading player in the Indian banking industry.
5. India's Union Bank (with the merger of Andhra Bank and Corporation Bank)
It is one of the top 10 banks in India. The bank has 9,500 branches across India. 13,300 ATMs in India have opened so far. Its headquarters are located in Mumbai. It is a government-owned bank in India with more than 120 million customers and total revenue of US$106 billion.
Following the merger with Corporation Bank and Andhra Bank, which took effect on April 1, 2020, The Union Bank of India was founded on November 11, 1919.
6. Bank of India (With Merger of Allahabad Bank)
In India, the bank has around 6000 branches. 6104 ATMs in India have been opened so far. Its headquarters are located in Chennai.
It was established on September 7, 1906. Until July 1969, when it was nationalized along with 13 other banks, the Bank was privately owned and controlled. Currently, the bank has operations in 18 countries across five continents.
Visit the Bank of India Website
7. The Central Bank of India
In India, the bank has a total of 2,876 branches. 4,666 ATMs in India have opened. Its headquarters are located in Mumbai.
India's Central Bank is one of the country's oldest and largest nationalized commercial banks. It first opened its doors in 1918.
Visit Central Bank of India Website
8. Indian Overseas Bank
There are 2,995 branches of the bank throughout India. 3,400 ATMs in India have opened so far.
Its headquarters are located in Chennai. Shri. M.C.M. Chidambaram Chettyar, a pioneer in various domains, founded it on February 10, 1937. In 1969, IOB was one of 14 major banks that were nationalized.
Visit the Indian Overseas Bank Website
9. The United Commercial Bank, Ltd. (UCO)
In India, the bank has a total of 2377 branches. 4000 ATMs in India have opened so far. Its headquarters are located in Kolkata.
It was founded in Kolkata in 1943. The concept of forming and operating a commercial bank with Indian capital and management came from G.D. Birla.
Visit United Commercial Bank Website
10. Bank of Maharashtra
In India, the bank has a total of 1860 branches. There are a total of 1897 ATMs throughout India that have opened.
Pune is where the company's headquarters are located. V.G. Kale and D. K. Sathe formed the bank in Pune, India. The bank had a total of 29 million customers in the country.
Visit the Bank of Maharashtra Website
11. Punjab & Sindh Bank
In India, the bank has a total of 1045 branches. It has opened a total of 1554 ATMs in India. Its headquarters are located in New Delhi. The bank was founded on June 24, 1908, in Amritsar.
Bhai Vir Singh, Sir Sunder Singh Majitha, and Sardar Tarlochan Singh established it to service colonial India's Sind and Punjab regions.
Visit Punjab & Sindh Bank Website
List of Private Banks in India (PSB)
1. Axis Bank
It is one of the best private banks in India. In India, the bank has a total of 4094 branches. It has opened a total of 17315 ATMs throughout India. Its headquarters are located in Mumbai. In India, Axis Bank is the third-largest private sector bank.
It was founded in 1994. Axis Bank is among the first new-generation private sector banks to open its doors.
2. Bandhan Bank
In India, the bank has a total of 1000 branches. It has opened a total of 485 ATMs in India. The company's headquarters are in Kolkata, West Bengal. Bandhan Bank is the first microfinance institution in India to transition into a universal bank.
Bandhan Bank Limited was established as a public limited company on December 23, 2014, in Kolkata, West Bengal.
3. Catholic Syrian Bank
In India, the bank has a total of 426 branches. 290 ATMs in India have opened so far. Its headquarters are in the Kerala town of Thrissur. It was founded in 1920. The bank currently has a customer base of around 1.6 million people.
Visit the Catholic Syrian Bank Website
4. City Union Bank
In India, this bank has a total of 600 branches. 1724 ATMs in India have opened so far. Its headquarters are in the Thanjavur, Tamil Nadu. The bank was founded on October 31, 1904, under the name Kumbakonam Bank Limited. Its name was changed to City Union Bank in 1987.
5. DCB Bank
In India, this bank has a total of 323 branches. 499 ATMs in India have opened so far. Its headquarters are in Mumbai, Maharashtra. DCB Bank was granted its license on May 31, 1995. Businessworld Magna Awards 2018 named DCB Bank the runner-up for Best Small Bank in India.
6. Dhan Laxmi Bank
In India, this bank has a total of 269 branches. 364 ATMs in India have opened so far. Its headquarters are in Thrissur, Kerala. It was established in 1927.
7. Federal Bank
In India, this bank has a total of 1252 branches. 1598 ATMs in India have opened so far. Its headquarters are in the Aluva, Kerala. The bank has more than ten million customers. Federal Bank opened its first foreign representative office in Abu Dhabi in January 2008.
8. HDFC Bank
In India, this bank has a total of 4787 branches. 13514 ATMs in India have opened so far. Its headquarters are in Mumbai, Maharashtra. In 1994, the bank was established. As of April 2021, it is India's largest & the best private sector bank by assets and the world's tenth-largest bank by market value.
9. ICICI Bank
In India, this bank has a total of 4882 branches. 15159 ATMs in India have opened so far. Its headquarters are in Mumbai, Maharashtra. ICICI Bank is India's largest private sector bank. On September 30, 2020, the bank's consolidated total assets were Rs. 14.76 trillion.
10. IDBI Bank
In India, the bank has a total of 1892 branches. It has opened a total of 3693 ATMs in India. Its headquarters are located in Mumbai, Maharashtra. It was established in 1964.
11. IDFC First Bank
In India, the bank has a total of 301 branches. It has opened a total of 216 ATMs in India. Its headquarters are located in Mumbai, Maharashtra. On October 1, 2015, the bank began operations. It is India's first cashless merchant solution to be linked to Aadhaar.
12. IndusInd Bank
In India, the bank has a total of 1004 branches. It has opened a total of 2662 ATMs in India. Its headquarters are located in Mumbai, Maharashtra. IndusInd Bank was inaugurated in April 1994.
13. Jammu & Kashmir Bank
In India, the bank has a total of 958 branches. It has opened a total of 1322 ATMs in India. Its headquarters are located in Srinagar, Jammu, and Kashmir. It is one of India's oldest private sector banks and a scheduled commercial bank. It was established in 1938.
Visit Jammu & Kashmir Bank Website
14. Karnataka Bank
In India, the bank has a total of 835 branches. It has opened a total of 1503 ATMs in India. Its headquarters are located in Mangalore, Karnataka. Karnataka Bank Limited is India's eleventh largest private sector bank of the old generation. It has a customer base of nearly one million people across the country. It was founded on February 18, 1924.
15. Karur Vysya Bank
In India, the bank has a total of 668 branches. It has opened a total of 1641 ATMs in India. Its headquarters are located in Karur, Tamil Nadu. It was founded in 1916. It has been in operation for 100 years.
Visit Karur Vysya Bank Website
16. Kotak Mahindra Bank
This Indian bank has a total of 1369 branches across India. In India, it has opened a total of 2429 ATMs. The bank’s headquarters are in Mumbai, Maharashtra. Uday Kotak founded the company in 1985.
Visit Kotak Mahindra Bank Website
17. Bank Lakshmi Vilas
There are 570 branches of the bank throughout India. In India, it has opened a total of 1045 ATMs. The bank’s headquarters are in Chennai, Tamil Nadu. It was established in 1926.
Visit Bank Lakshmi Vilas Website
18. Bank of Nainital
The bank has a total of 135 branches across India. The bank’s headquarters are in Nainital, Uttarakhand. In 1922, the bank was established. It has branches in Rajasthan, Delhi, and Haryana and has expanded to Uttar Pradesh and Uttarakhand.
Visit Bank of Nainital Website
19. RBL Bank
There are 342 branches of the bank throughout India. The bank’s headquarters are in Mumbai, Maharashtra. Ratnakar Bank was its previous name. It was founded in 1943.
20. South Indian Bank
It has a total of 852 branches in India. In India, it has opened a total of 1393 ATMs. The bank’s headquarters are in Thrissur, Kerala. It was founded in 1929. On August 7, 1946, it was added to the Reserve Bank of India's second schedule and became a scheduled bank.
Visit the South Indian Bank Website
21. Tamilnad Mercantile Bank Limited
It has a total of 509 branches across India. In India, it has opened a total of 1156 ATMs. The bank’s headquarters are in Thoothukudi, Tamil Nadu. It was founded in 1921. Initially, it was a bank for the Nadar business community.
Visit Tamilnad Mercantile Bank Website
22. Yes Bank
It has a total of 1050 branches in India. In India, it has opened a total of 1305 ATMs. The bank’s headquarters are in Mumbai, Maharashtra. In 2004, Rana Kapoor and Ashok Kapur established the bank.
