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