Who owns the Public-sector banks?

Q.  With whom does the ownership of Public sector banks rest?
- Published on 07 Feb 17

a. Government of India
b. Jointly with Government of India and share-holders from the public
c. Jointly with Government of India and State Bank of India
d. Jointly with Government of India and Reserve Bank of India

ANSWER: Government of India
 
Government of India

Public Sector Banks (PSBs) are banks where a majority stake (i.e. more than 50%) is held by Government.

There are total of 27 PSBs in India [21 Nationalized banks + 6 State bank group (SBI + 5 associates)].

In 2011, IDBI bank and in 2014 Bharatiya Mahila Bank were nationalized.
  • The Central Government entered the banking business with the nationalization of the Imperial Bank of India in 1955 and the bank was renamed as the State Bank of India.
  • The other state banks became the subsidiaries of the new bank when nationalized on 19 July 1960.
  • The next major nationalization of banks took place in 1969 when the government of India, under prime minister Indira Gandhi, nationalized an additional 14 major banks.
  • The next round of nationalization took place in April 1980. The government nationalized six more banks.

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