Bank Nationalisation: Banking in 1969 vs Now and Merger of Private Banks with PSU Banks

Bank Nationalisation played a very important role in the economy of India. The nationalisation of banks in 1969 was one of the most transformative economic decisions in the history of independent India. It laid the foundation for inclusive growth, financial stability, and social equity. Today let’s have a look at the Banking in 1969 vs now (2025). In this article, we will have a look at the number of branches, deposits, loans, employees in 1969 vs in 2025.

12 PSBs	1969	2025
Bank Branches	8,200	90,000
Rural Branches	500	35,000
Total Deposits	Rs. 5000 crores	Rs. 140 Lac crores
Total Loans given	Rs. 3500 crores	Rs. 110 Lac crores
Priority sector loans	—	40 %
Total staff	1 lac	8 lacs

Failed Private Banks and Merger

Did You Know? Several Private Banks failed from 1969 till 2007 and were merged with Public Sector Banks. Today also Public Sector Banks continue to save private banks as you can see in case of Yes Bank. SBI had invested a huge amount of money in Yes Bank to save it from failing. Let’s have a look at some of the prominent private banks that failed in that era and were merged with government banks.

Year	Failed Private Bank	Merged with
1969	Bank of Bihar	State Bank of India
1970	National Bank of Lahore	State Bank of India
1971	Eastern Bank	Chartered Bank
1974	Krishnarao Baldeo Bank	State Bank of India
1976	Belgaum Bank	Union Bank of India
1985	Lakshmi Commercial Bank	Canara Bank
1986	Miraj State Bank	Union Bank of India
1986	Hindustan Commercial Bank	Punjab National Bank
1990	Traders Bank	Bank of Baroda
1990	Bank of Tamilnad	Indian Overseas Bank
1990	Bank of Thanjavur	Indian Bank
1991	Parur Central Bank	Bank of India
1991	Purbanchal Bank	Central Bank of India
1994	Bank of Karad	Bank of India
1995	Kasinath State Bank	State Bank of India
1999	Sikkim Bank	Union Bank of India
1999	Bareilly Banking Corporation	Bank of Baroda
2002	Benaras State Bank	Bank of Baroda
2003	Nedungadi Bank	Punjab National Bank
2004	Global Trust Bank	Oriental Bank of Commerce
2006	United Western Bank	IDBI Bank
2007	Bharat Overseas Bank	Indian Overseas Bank

This clearly shows that Public Sector Banks are the lifeline of Indian Economy. These PSU Banks have expanded their reach to the remotest places in the country and are providing banking services to the underprivileged.