Public Sector Undertakings (Banks) are a major type of government-owned banks in India, where a majority stake (i.e., more than 50%) is held by the Ministry of Finance (India) of the Government of India or State Ministry of Finance of various State Governments of India. The shares of these government-owned-banks are listed on stock exchanges. Their main objective is social welfare.
Nationalized Banks (Government Shareholding %, as at end-March 2023)
|State Bank of India||57.59%|
|Bank of Baroda||63.97%|
|Punjab National Bank||73.15%|
|Bank of India||81.41%|
|Union Bank of India||83.49%|
|Bank of Maharashtra||90.90%|
|Central Bank of India||93.08%|
|Indian Overseas Bank||96.38%|
|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.