Private and Public sector Banks

Private Sector Banks in India
Private Sector Banks refer to those banks where most of the capital is in private hands. In India,
there are two types of private sector banks namely Old Private Sector Banks and New Private Sector
Banks. Old private sector banks are those which existed in India at the time of nationalization of
major banks but were not nationalized due to their small size or some other reason. After the
banking reforms, these banks got license to continue and have existed in India along with new
private banks and government banks.
Old Private Banks
At present, there are 12 old private sector banks in India as follows:
1. Catholic Syrian Bank
2. City Union Bank
3. Dhanlaxmi Bank
4. Federal Bank
5. Jammu and Kashmir Bank
6. Karnataka Bank
7. Karur Vysya Bank
8. Lakshmi Vilas Bank
9. Nainital Bank
10. Ratnakar Bank
11. South Indian Bank
12. Tamilnad Mercantile Bank
Among the above, Nainital Bank is a subsidiary of the Bank of Baroda, which has 98.57% stake in
it.
Defunct Private Banks
Some other old generation private sector banks in India have merged with other banks. For
example, Lord Krishna Bank merged with Centurion Bank of Punjab in 2007; Sangli Bank merged
with ICICI Bank in 2006; Centurion Bank of Punjab merged with HDFC in 2008.More recently, in
2016, the ING Vysya Bank merged with Kotak Mahindra Bank, creating the fourth largest private
sector bank in India.
New Private Sector Banks in India
The new private sector banks were incorporated as per the revised guidelines issued by the RBI
regarding the entry of private sector banks in 1993. At present, there are 9 new private sector
banks as follows:
1. Axis Bank
2. Development Credit Bank (DCB Bank Ltd)
3. HDFC Bank
4. ICICI Bank.                                           5. IndusInd Bank
6. Kotak Mahindra Bank
7. Yes Bank
8. IDFC
9. Bandhan Bank of Bandhan Financial Services.
Kindly note that all the old and new banks listed above are scheduled commercial banks.                    Public Sector Banks in India
Public Sector Banks in India refers to those banks in which the Government equity / shareholding
is more than 50%. At present, there are 22 Public Sector Banks in India of which 21 are scheduled
commercial banks while one namely India Post Payment Bank is a payment bank. These along with
their current government equity are as follows:
1. Allahabad Bank (60%)
2. Andhra Bank (61%)
3. Bank of Baroda (63.7%)
4. Bank of India (64.4%)
5. Bank of Maharashtra (81.61%)
6. Canara Bank (64.5%)
7. Central Bank of India (81.5%)
8. Corporation Bank (100%)
9. Dena Bank (80.7%)
10. IDBI Bank (76.5%)
11. Indian Bank (81.51%)
12. Indian Overseas Bank (89.90%)
13. Oriental Bank of Commerce (77.23%)
14. Punjab & Sind Bank (79.62%)
15. Punjab National Bank (60%)
16. State Bank of India (59%)
17. Syndicate Bank (66.17%)
18. UCO Bank (84.23%)
19. Union Bank of India (63.44%)
20. United Bank of India (85.91%)
21. Vijaya Bank (68.8%)
22. India Post Payments Bank (100%) [Payments Bank]. Apart from these, IDBI has been classified as "Other Public Sector Banks". The UPA government
had launched a Bhartiya Mahila Bank also, which in 2017 was merged in State Bank of India.

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