All Public and Private Sector Banks in India 2022

Banks are the backbone of an economy. India has the Reserve Bank Of India with the highest banking regulatory authority. The Reserve Bank Of India was established under the RBI Act, 1934. The banking sector is divided into two groups, Scheduled Banks and Non-Scheduled Banks. Indian Banks are further divided into commercial banks, Small Finance Banks, Payments Banks, and cooperative banks. The commercial banking sector is divided into groups based on their ownership; public and private sector banks. The banks owned by the government are classified in the public sector, the Bank of Baroda, and the Bank of Maharashtra. In contrast, banks owned by individuals are classified in the private sector.

Public Sector Banks

A Public Sector Bank is the one in which the government owns more than 50% of the bank’s shares. They are majorly known as government banks. These banks’ aims are set for the country’s social welfare and its people. They are also set to step up economic growth. These banks can be formed when the parliament passes an act. The people trust these banks due to the government. Ownership and long presence in the country.

 Examples of these sector banks are Bank of Baroda, 1908, and Bank of Maharashtra, 1935.

Private Sector Banks

A Private Sector Bank is the one whose individual or private organisation holds more than 50% shares. They entered India later than the public sector due to the reforms in 1991. They are registered under the Companies Act,2013 and have profit maximisation as their main goal. Though they entered the market late, they have captured their audience due to their technological advancements and better customer service. Examples of these sector banks are; Kotak Mahindra Bank,2003 and HDFC Bank,1994. 

Difference between Public and Private sector Banks in India

The main difference between public and private sector banks lies in their ownership. While the govt. Public sector banks and private organisations own private sector banks. They also differ in their aims and objectives. The public sector aims at social welfare, whereas the private sector aims at profit maximisation. This difference in aims brings their differences in the interest rate provided by the bank. The public sector banks have a higher customer base than the private sector but have proved to have lower growth opportunities. Employees prefer the public sector banks due to higher job security and the scheme of pension. The private sector offers no such scheme or job security. 

Reserve Bank Of India

It is an apex body and monetary authority of the country. It regulates the economy and all the banks around the country. It was established under the RBI Act in 1934. It was established on 1st April 1935, with headquarters in Mumbai, Maharashtra. The Ministry of Finance owns the Reserve Bank of India and is involved in all the finance-related activities happening in the country. It is also a member of the Asian Clearing Union. 

Did you know that it is often referred to as ‘Mint Street’?

List of all Public and Private Sector Banks in India 2022

• Public sector banks

1.  Bank of Baroda
2. Bank of India
3. Bank of Maharashtra
4. Canara Bank
5. Central Bank of India
6. Indian Bank
7. Indian Overseas Bank
8. Punjab and Sind Bank
9. Punjab National Bank
10. State Bank Of India
11. UCO Bank
12. Union Bank of India

• Private sector Banks

1.   Axis Bank
2. Bandhan Bank
3. CSB Bank
4. City Union Bank
5. DCB Bank
6. Federal Bank
7. HDFC Bank
8. ICICI Bank
9. Indusind Bank
10. Idfc First Bank
11. Jammu & Kashmir Bank
12. Karnataka Bank
13. Karur Vysya Bank
14. Kotak Mahindra Bank
15. IDBI Bank
16. Nainital Bank
17. RBL Bank
18. South Indian Bank
19. YES Bank
20. Tamilnad Mercantile Bank

Largest Bank in Public and Private Sector Banks of India

In the Private Sector HDFC Bank, established in 1994, is announced as the largest bank with revenue of ₹816.02 billion. In the Public Sector, the State Bank Of India, established in 1955, came up as the largest bank with the largest number of employees and held the most people’s trust. 

Conclusion:

The Banking system followed by India is complex, with various groups of banks maintaining the country’s economy and social welfare. The Public and Private Sector Banks in India help maintain the money flow in the country. The Public Sector banks like Bank of Baroda and Bank of Maharashtra are owned by the government and mainly work for the country’s social welfare. In contrast, the Private Sector banks owned by individuals or private organisations act more like companies to earn the most profit and work to achieve the same goal. While both the banks are different, they are equally important for a developing country like India and have helped maintain its economy.