Government shareholding in banks is important for the country’s financial system. In India, the government’s stake in public sector banks (PSBs) shows its commitment to ensuring stability in the economy, providing enough credit to different sectors, and supporting growth. Over time, the amount of government ownership in these banks has changed due to policies and economic conditions. This update will give a clear view of how much the government owns in major Indian banks today and what it means for the banking sector and the economy. Understanding these changes helps people better grasp the banking system and the government’s role in it.
Nationalized Banks (Public Sector Banks) Government Shareholding % (as of June 2024)
| Bank Name | Govt Share (%) |
|---|---|
| State Bank of India | 57.54 |
| Punjab National Bank | 70.08 |
| Bank of Baroda | 63.97 |
| Canara Bank | 62.93 |
| Union Bank of India | 74.76 |
| Indian Bank | 73.84 |
| Bank of India | 73.38 |
| Central Bank of India | 93.08 |
| Indian Overseas Bank | 96.38 |
| UCO Bank | 95.39 |
| Bank of Maharashtra | 86.46 |
| Punjab and Sind Bank | 98.25 |
The Central Government entered the banking business with the nationalization of the Imperial Bank of India in 1955.
A 60% stake was taken by the Reserve Bank of India and the new bank was named State Bank of India. The seven other state banks became subsidiaries of the new bank in 1959 when the State Bank of India (Subsidiary Banks) Act, 1959 was passed by the Union government.
The next major government intervention in banking took place on 19 July 1969 when the Indira government nationalised an additional 14 major banks. The total deposits in the banks nationalised in 1969 amounted to 50 crores. This move increased the presence of nationalised banks in India, with 84% of the total branches coming under government control.