Private sector banks are the part of Indian Banking sector whose majority of shares are held by private shareholders and not by the Government, or in others words, private sector banks are those in which the stake of Govenment is less than 50%.
If we classify broadly, Private Sector banks are of 2 types:
Old Private Sector Banks
These banks existed before the liberisation that was implemented in 1969 and 1980. They were not nationalised as they were of small size or maybe due to the geographical limitation is their area of operation.
List of Old Private Sector Banks
Established year is shown in bracket
- Dhanlaxmi Bank (1927)
- Federal Bank (1931)
- South Indian Bank (1929)
- Tamilnad Mercantile Bank (1921)
- RBL Bank (1943)
- IDBI Bank Ltd (1964)
- Karnataka Bank (1924)
- Karur Vysya Bank (1916)
- Lakshmi Vilas Bank (1926)
- City Union Bank (1909)
- Centurion Bank of Punjab (1943)
- ING Vysya Bank Merged with kotak Mahindra bank (1930)
- Jammu and Kashmir Bank (1938)
- Abc and evergreen Bank (1965)
- SBI Commercial and international Bank (1955)
- Catholic Syrian Bank
New Private Sector Banks
These banks started operating in India from 1991. In 1993 the banking Regulation act permitted the entry of private players in the Banking industry, subject to fulfillment of certain criteria:
- Minimum net-worth : Rs.200 crores
- The promoters need to have a stake of at-least 25% of the paid-up capital
- Within completion of 3 years of operation, their shares should be made available for purchase by the public and the net-worth should exceed the Rs.300 crore benchmark.
List of New Private Sector Banks
Formed year is shown in bracket
- Bandhan bank (2015)
- IDFC Bank (2015)
- Balaji Corporation Bank Limited (2010)
- Axis Bank (earlier UTI Bank) (1994)
- Bank of Punjab (1989)
- Centurion Bank Ltd (1994)
- Development Credit Bank (1995)
- ICICI Bank (1996)
- IndusInd Bank (1994)
- Kotak Mahindra Bank (2003)
- Yes Bank (2005)
- HDFC bank (1994)
The Private sector Banks are regulated by Reserve Bank of India and falls under the purview of Banking Ombudsman scheme and they also has to adhere to the practices of The Banking Codes and Standards Board of India.
Recommended Read :
- Private Sector Banks
- Nationalised Banks in India
- Public Sector Banks in India
- Scheduled Banks India
- Co Operative Society
- What is a Commercial Bank?
- Kerala Banks
- What are Non Scheduled Banks?
- What is a Foreign Bank Foreign Banks in India?
- What is a Co Operative Bank?
- What is Core Banking?
- What is Transaction Fee What is Its Significance?
- What Does Know Your Customer Kyc Mean?
- What is a Bank Statement?
- What is a Cheque?
- What is a Banking Transaction?
- What is Networth?
There are many types? Private sector banks make so much money, hard to imagine being a public sector banker.
Great to know that the Ombudsman can still resolve complaints in private sector banks as well though, since private sector banks charge a lot of fees and have fewer regulations.
Glad I read this!