List of Banks In India: A Brief on the Indian Banking System

As we all know, the banking system of a country enables both the government as well as its citizens to carryout commercial transactions under a set of guidelines based on international commerce and business practices. It is necessary for all commercial transactions to be correct, efficient and a growth enabler. Toward this end there are appropriate banking laws governing banks in India.

Indian Banking History

While informal or indigenous banking was prevalent in India from the ancient time, the Western Banking System came into existence in India with the arrival of the British East India Company. India’s largest bank today which we all know today as the State Bank of India was actually conceived in mid-1806 as the Bank of Bengal. This along with 2 other banks conceived around that time – Bank of Bombay and Bank of Madras came to be known as the Presidency banks. The East India Company allowed this banks existence by charter and these in 1921 merged to form the Imperial Bank of India and by 1955 was renamed as the State Bank of India.

During the movement for Independence from the British yoke, many notable Indians decided to form banks which were run by Indians and provided services for Indians. Most of these personalities happened to be from undivided Dakshina Kannada which has the Cities of Mangalore and Udupi. Many notable banks established here and which are present today are Corporation Bank, Syndicate Bank, Canara Bank and Vijaya Bank. The area covered by the current Karnataka districts of D.K. and Udupi is known as the cradle of modern Indian banking.

Central Regulator

It is in national interest to have a Central Banking Authority to monitor banks, determine fiscal policy, regulate banking processes and keep a control on currency and the national treasury. The Reserve Bank of India fulfils this role. It came in existence in 1935 and was nationalized in January 1949 under the RBI Act of 1948. The Reserve Bank produces Currency Notes of denominations greater than one rupee. These are printed at various Government Printing Presses. Old Currency notes are withdrawn from circulation and destroyed. By monitoring banks, the RBI instills within the Indian public confidence in using the services of banks in India. It monitors key economic indicators as well as facilitates the internal as well as external payment among banks and customers. With the advent of internet banking and ATM the RBI ensures that customers’ interests are protected as well as allowing banks to move outside their traditional methods of transacting business. All necessary Banking policies are conceived and implemented by the Reserve Bank and all banks operating in the Union of India have to abide by the mandate of the RBI.

Nationalizing of Indian Banks

Post the creation of the RBI, barring the State Bank of India, most banks in the country were privately owned. In the pre-70’s banking environment, banking had a very important role in stimulating the growth of the Indian economy. The prime minister of India at that time Indira Gandhi, decided that it was necessary to bring a majority of these banks under government control and thus had an ordinance passed in parliament nationalizing some of the large banks. 14 banks were nationalized in 1969 and 6 more in 1980.

List of Banks in India

All banks that operate in India today under the RBI Act are either scheduled commercial banks or are scheduled co-op banks. These are broadly grouped into 5 different categories as given below:

  1. State Bank of India and its Associate Banks
    1. State Bank of India
    2. State Bank of Mysore
    3. State Bank of Travancore
    4. State Bank of Patiala
    5. State Bank of Hyderabad
    6. State Bank of Bikaner and Jaipur
  2. Indian Nationalized Banks
    1. Indian Bank
    2. Indian Overseas Bank
    3. IDBI Bank
    4. United Bank of India
    5. Union Bank of India
    6. Bank of India
    7. Central Bank of India
    8. Allahabad Bank
    9. Corporation Bank
    10. Vijaya Bank
    11. Bank of Baroda
    12. Andhra Bank
    13. Bank of Maharashtra
    14. Canara Bank
    15. Punjab National Bank
    16. Syndicate Bank
    17. Bhartiya Mahila Bank
    18. Dena Bank
    19. Oriental Bank of Commerce
    20. UCO Bank
    21. Punjab and Sindh Bank
  3. Private Sector Banks
    1. ICICI Bank
    2. Axis Bank
    3. HDFC Bank
    4. IndusInd Bank
    5. YES Bank
    6. ING Vysya Bank
    7. Kotak Mahindra Bank
    8. Catholic Syrian Bank
    9. Tamilnadu Mercantile Bank
    10.  Lakshmi Vilas Bank
    11.  South Indian Bank
    12.  Development Credit Bank
    13.  Federal Bank
    14.  City Union Bank
    15.  Karur Vysya Bank
    16.  Karnataka Bank
    17.  Dhanlaxmi Bank
    18.  Nainital Bank
  4. Foreign Banks in India
    1. HSBC
    2. Standard Chartered Bank
    3. Citibank N
    4. Barclays Bank
    5. Deutsche Bank
    6. Bank of America
    7. Credit Suisse
    8. BNP Paribas
    9. Abu Dhabi Commercial Bank
    10. Bank of Bahrain and Kuwait
    11. JPMorgan Chase Bank
    12. DBS Bank
    13. China trust Commercial Bank
    14. Bank of Nova Scotia
    15. State Bank of Mauritius
    16. Mizuho Corporate Bank
    17. UBS
    18. Bank of Ceylon
    19. Royal Bank of Scotland
    20. Australia and New Zealand Bank
    21. Bank of Tokyo Mitsubishi
    22. Mashreq Bank
    23. Commonwealth Bank of Australia
    24. Shinhan Bank
    25. Krung Thai Bank
    26. Societe Generale
    27. Bank Internasional Indonesia
    28. Woori Bank
    29. Calyon Bank
    30. Sonali Bank
    31. RHB Bank
    32. FirstRand Bank
  5. Regional Rural Banks – There are nearly 80 banks in this category

The Banking system is a nurturing one moving in tandem with the great economic strides taken by the country. The banks in India are a reflection of the economic might that places us in the BRICS nations.

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