Public Sector banks
Public Sector banks are owned by the Government. Or in other words, the stake of the Government is more than 50% in these banks. The shares of these banks are listed in the stock market and are available for trading by the general public.
The Government started taking over the ownership of banks since 1955. The banks are regulated by Reserve Bank of India and they are governed by the Banking Regulation Act. Their primary function is to accept deposits from the public for the purpose of lending. However, the scope of the banking industry has widened many folds and gradually, they are transforming themselves to become a financial hub, where all the financial needs of a person are addressed.
These banks act as the agent for Government. They also provide insurance and investment products and earn commission for rendering these services. They also provide locker facility. Banks also has exposure in foreign exchange business. So, in one word, they are doing much more than accepting and lending money.
These banks has to adhere to the practices as laid down by The Banking Codes and Standards Board of India and are bound by the Right to Information Act.
Inclusion in Public Sector Banks
In India, there is 27 public sector banks. These are further divided into 19 nationalised banks, 6 State Bank of India and its associate banks and the remaining two are IDBI Bank and Bharatiya Mahila Bank.
| State Bank of India and its associates | 6 |
| Nationalised banks | 19 |
| Other Public Sector Banks | 2 |
State Bank of India and its associates
- State Bank of India
- State Bank of Bikaner & Jaipur
- State Bank of Hyderabad
- State Bank of Patiala
- State Bank of Mysore
- State Bank of Travancore
Nationalised banks in India
- 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 & Sind Bank
- Punjab National Bank
- Syndicate Bank
- UCO Bank
- Union Bank of India
- United Bank of India
- Vijaya Bank
Other public sector banks
- IDBI Bank
- Bharatiya Mahila Bank
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The financial institutions belonging to the public sector tends to offers several investment products or insurance to lower interest rate than the other banks to gain more clients. And they do the same with exchange market. Usually people are inclined to choose the private banking even when the public sector has a lot to offer.