RESEARCH REPORT ON PSU BANKS

RESEARCH REPORT ON PSU BANKS

Introduction

A bank is commonly a financial institution licensed to receive deposits and make loans. It also provides other financial support to the customer. Government banks or public sector banks are a major type of government-owned banks in India, where a majority stake is held by the Ministry of Finance of the Government of India or State Ministry of Finance of various State Governments of India. In public sector banks, the government owns more than 51% of shareholdings. Reserve bank of India is India’s central banking institution and supreme banking authority.

Public sector banks are the backbone of the Indian economy. Here we have discussed in detail banks and their types, bank mergers, list of nationalized banks in India 2022, bank mergers, etc., A total of 27 public sector banks are there in 2017. Finance minister Nirmala Sitharaman made an announcement of public sector bank mergers on 30th August 2019, the number of public sector banks has reduced to 12. Now as per the government banks in India list 2022, there is a total of 12 public sector banks. Also, the list of public banks in India 2022 is provided below. Have a look at the government banks in India name list available here.

 

 

Names of Government Banks in India List 2022

 

 

12 Public Sectors Banks in India 2022 – Details

Here we have added the significant details of the government banks in India list 2022. The 12 public sector banks along with Headquarters, year of establishment, Government shareholding details are tabulated below.

S.No Public Sector Banks Government Share Holding (As of 30th June 2021) Established On Headquarters
1 State Bank of India 55% 1955 Mumbai, Maharashtra
2 Punjab National Bank
73.1% 1894 New Delhi, Delhi
3 Bank of Baroda
64% 1908 Vadodara, Gujarat
4 Bank of India 81.41% 1906 Mumbai, Maharashtra
5 Bank of Maharashtra 93.33% 1935 Pune Maharashtra
6 Union Bank of India 83.5% 1919 Mumbai, Maharashtra
7 Canara Bank 69.33% 1906 Bengaluru, Karnataka
8 Central Bank of India 93.08% 1911 Mumbai, Maharashtra
9 Indian Bank 78.86% 1907 Chennai, Tamilnadu
10 Indian Overseas bank 96.4% 1937 Chennai, Tamilnadu
11 Punjab and Sind Bank 98.07% 1908 New Delhi
12 UCO Bank 95.39% 1943 Kolkata, WB

 

 

 

Bank Mergers – Largest Public Sector Banks After Merger
Here is the list of the largest nationalized banks in India 2022 after the merger. In this merger, the 6 banks merged with 6 independent public sector banks.
• Six merged banks – SBI, Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India, Indian Bank.
• Six independent banks – Indian Overseas Bank, Uco Bank, Bank of Maharashtra, Punjab and Sind Bank, Bank of India, Central Bank of India.

 

Banks Merged – List of Government Banks in India After Merger
Banks mega-merger was made by Union Finance Minister Nirmala Sitharaman in 2019. Bank mergers are done to reduce the cost of operation of banks, it improves risk management of banks and it improves the professional standard. The bank mergers and acquisitions are provided here.
• Punjab National Bank, Oriental Bank of Commerce, and United Bank
• Canara Bank and Syndicate Bank
• Union Bank, Andhra Bank, and Corporation bank
• Indian Bank and Allahabad Bank

 

Largest Public Sector Banks After Merger

The largest government banks in India list 2022 after mergers is tabulated below.
Bank Rank
State Bank of India 1
Punjab National Bank, Oriental Bank of Commerce, and United Bank 2
Bank of Baroda 3
Canara Bank and Syndicate Bank 4
Union Bank, Andhra Bank, and Corporation bank 5
Bank of India 6
Indian Bank and Allahabad Bank 7
Central Bank of India 8
Indian Overseas Bank 9
UCO Bank 10
Bank of Maharashtra 11
Punjab & Sind Bank 12

State Bank of India

The State Bank of India, the countrys oldest bank and a premier in terms of balance sheet size, number of branches, market capitalization and profits is today going through a momentous phase of change and transformation the two hundred year old public sector behemoth is today stirring out of its public sector legacy and moving with an agility to give the private and foreign banks a run for their money.The bank is entering into many new businesses with strategic tie ups Pension Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant Acquisition, Advisory Services, structured products etc each one of these initiatives having a huge potential for growth.The services offered by the company includes NRI Services,Personal Banking,International Banking,Agriculture / Rural,Corporate Banking,SME,Government Business and Domestic Treasury.

 Fundamentals

 Shareholdings

Punjab National Bank

 

Punjab National Bank (abbreviated as PNB) is an Indian public sector bank headquartered in Delhi, India, it is under the ownership of the Ministry of Finance, government of India. The bank was founded in May 1894 and is the second largest government-owned bank in India, both in terms of its business volumes and its network. The bank has over 180 million customers, 12,248 branches, and 13,000+ ATMs.

Punjab National Bank is one of the oldest banks in India having a virtual presence in every important center of the country. The Bank caters to a wide variety of audience through spectrum of services including corporate and personal banking, industrial finance, agricultural finance and international finance. The core focus of the bank is on retaining and further improving low cost deposits, lending to agriculture and small and medium enterprises and repositioning of subsidiaries and joint ventures.
 Fundamentals

 Shareholdings

Bank of Baroda

 

Bank of Baroda is a pioneer in various customer centric initiatives in the Indian banking sector. Services offered by the bank includes Retail banking -under which it offers products and services such as deposits, loans, credit and debit cards, demat services, remittances, ECS (electronic clearing services, government business, etc.; Rural and agri banking under which it offers products and services such as deposits, agricultural loans, lockers services, etc to rural customers and agricultural sector; Corporate banking -under which it provides project finance, film finance, foreign currency loans, working capital finance, treasury products, etc to the corporate sector; products & services are also offered for the SME sector & provides wealth management services to companies in the areas of insurance and mutual funds. In insurance it offers services to HDFC and National Insurance Company. In mutual funds it provides services to UTI, Birla Sun Life, Reliance Mutual Fund, Sundaram BNP Paribas, Franklin Templeton Investments and Baroda Pioneer Asset Management Company.

 Fundamentals

 Shareholdings

Canara Bank

 

Canara Bank is a public sector bank. The services offered by the bank includes Personal Banking- i.e. saving accounts, deposits, loans, mutual funds, Insurance, internet banking, debit card, credit card, etc.; Corporate Banking- i.e .Cash Management Services, loans, IPO monitoring services, etc.; NRI Banking- i.e. remittance services, consultancy services to its NRI Clients, etc. They also offer various products and services to the priority and SME sector.
 Fundamentals

 Shareholdings

Union Bank of India

Union Bank Of India operates in the following business areas Personal banking: provides products and services in area of saving, deposit, retail loans, cards, insurance, investment and demat facility.NRI Banking: Under this they offer a range of services and products in areas like remittance, saving, deposit, loans and payment to their NRI customers. Corporate Banking: The bank offers services like CMS, E-Tax, trade finance, insurance products and loans to their corporate clients. The overseas offices of the banks are located in Hongkong, Sydney, Abu Dhabi, Beijing, Shanghai and London.
Union Bank of India, commonly referred to as Union Bank or UBI, is an Indian government-owned bank with 120+ million customers and a total business of US$106 billion. After the amalgamation with Corporation Bank and Andhra Bank, which came into effect on 1 April 2020, the amalgamated entity became the one of the largest PSU bank in terms of branch network with around 9500 branches. The bank has a network of 9300+ domestic branches, 11800+ ATMs, 8216+ Business Correspondent Points serving over 120 million customers with 77000+ employees.

 Fundamentals

 Shareholdings

Bank of India

Bank of India (BOI) is an Indian nationalised bank. It is under the ownership of Ministry of Finance, Government of India with headquarters in Bandra Kurla Complex, Mumbai. Founded in 1906, it has been government-owned since nationalisation in 1969. BoI is a founder member of SWIFT (Society for Worldwide Inter Bank Financial Telecommunications), which facilitates provision of cost-effective financial processing and communication services.

As on 31 March 2021, Bank of India’s total business stands at ₹1,037,549 crore (US$130 billion), has 5,108 branches and 5,551 ATMs around the world (including 24 overseas branches).

Bank Of India has been in the forefront of introducing various innovative services and systems. Bank of India provides a wide range of products and services in deposits, loans, NRI banking, cards, and online services such as Internet banking. Also a wide variety of new products and services like Kits introduced for NRI Customers opening NRE/ NRO accounts at foreign centers, Launched Marathi version of the Banks website, Enabling internet banking customers to make online Fixed Deposit ,etc.

 Fundamentals

 Shareholdings

Indian Bank

Indian Bank is a major nationalised bank. It is under the ownership of the Ministry of Finance, Government of India. It was established in 1907 and is headquartered in Chennai, India.
It serves over 100 million customers with 39,734 employees, 5,721 branches with 5,428 ATMs and Cash deposit machines and is one of the top performing public sector banks in India. Total business of the bank has touched 1,010,000 crore (US$130 billion) as on 31 March 2022. As per the announcement made by the Indian Finance Minister Nirmala Sitharaman on 30 August 2019, Allahabad Bank merged from 1 April 2020, making Indian Bank now the seventh largest bank in the country.
Indian Bank was established as a part of the Swadeshi movement. The bank provides a wide spectrum of banking products and services. The services offered by the bank includes Personal Banking -Under this the bank offers fixed deposits, saving accounts, recurring accounts, saving accounts for kids and senior citizens, internet banking, ATM facility, debit/credit cards, home loans, personal loans.NRI services- The bank offers banking products and services to NRI clients such as saving accounts, remittance facilities, forex advisory services, home loans, etc. They also provide cash management services (CMS), eletronic funds transfer schemes as well as provides seven-day banking at few of their branches.
 Fundamentals

 Shareholdings

Central Bank of India

Central Bank of India (CBI) is an Indian nationalised bank. It is under the ownership of Ministry of Finance, Government of India and is one of the oldest and largest nationalised commercial banks in India. It is based in Mumbai, the financial capital of India and capital city of state of Maharashtra. Despite its name, it is not the central bank of India; The Indian central bank is the Reserve Bank of India.
Central Bank of India was the first Indian commercial bank which was wholly owned and managed by Indians. The products and services offered by the bank includes Individual and NRI- under which the bank offers wide range of product and services such as saving account, deposits, mutual funds, debit card, credit card, NRI account, Money transfer facility, Remittance facility, various loan facilities, senior citizen account, etc. For corporate it offers various products and services such as corporate accounts, loans, RTGS, NEFT, CMS, etc.

 

 Fundamentals

 Shareholdings

Indian Overseas Bank

Indian Overseas Bank (IOB) is a major Indian nationalised bank. It is under the ownership of Ministry of Finance, Government of India based in Tamil Nadu, India, with about 3,214 domestic branches, about 4 foreign branches and representative office. Founded in February 1937 by M. Ct. M. Chidambaram Chettyar with twin objectives of specialising in foreign exchange business and overseas banking.
The services offered by the bank includes: Personal banking -IOB provides a wide range of products and services such as saving bank accounts, current accounts, term deposit, retail loans, home loans and mortgages, depository services, gold investment products, debit and credit cards, multi city cheque facilities, insurance and mutual funds, and real time gross settlement services.NRI banking -Under this the bank offers remittances, resident foreign currency accounts, NRI home loans and many other products for their NRI clients. Corporate banking- IOB offers services such as term loans and working capital loans for micro, small, and medium enterprises; and loans for professional and self employed individuals, and information technology (IT) and ITes BPO sectors, as well as NRI accounts, and Internet and mobile banking services. In addition, they provide agricultural short term loans and agri business consultancy services; and forex collection services. They also conduct government businesses like payment of direct taxes, indirect taxes, pension payment scheme, sales tax collections, provident fund scheme, etc
 Fundamentals

 Shareholdings

UCO Bank

UCO Bank, formerly United Commercial Bank, established in 1943 in Kolkata, is one of the nationalised banks in India. It is under the ownership of Ministry of Finance, Government of India During FY 2020–21, its total business was 3.24 lakh crore. Based on 2020 data, it is ranked 80 on the Fortune India 500 list. UCO Bank was ranked 1948 in Forbes Global 2000 list of year 2018. As of 30 March 2017 the bank had 4,000 plus service units 49 zonal offices spread all over India. It also has two overseas branches in Singapore and Hong Kong. UCO Bank’s headquarters is on BTM Sarani, Kolkata.
The products offered by the bank includes Personal Banking- Under this segment the bank offers several products and services such as deposit, saving, personal loans, educational loans, car loans, RTGS, debit card, etc.NRI banking- The bank offers products and services to NRI Clients such as FCNR accounts, remittance services, etc. The bank also provides working capital finance, term loans, loans against securities issued by government/RBI, short term loan for pensioners, etc. They also offer services to the agricultural and SME sectors.

 Fundamentals

 

 Shareholdings

Bank of Maharashtra

 

Bank of Maharashtra is a nationalised bank under the ownership of Ministry of Finance , Government of India. The bank had 29 million customers across the country with 2022 branches as of Mar 2022. It has the largest network of branches of any nationalised bank in the state of Maharashtra. The total business of the bank crossed ₹ 3,15,620 lakh crore as on 31 December 2021.
Bank Of Maharashtra has the largest network of branches than any other public sector banks in Maharashtra. The services offered by the bank include Personal Banking – under which they offer services & products such as deposits, savings, personal loans, educational loans, RTGS, demat services, credit cards, etc.; NRI banking under which they offer products and services to NRI clients such as FCNR accounts, remittance services, etc. The PSU bank also offers services to agricultural and SME sectors.

 Fundamentals

 Shareholdings

Punjab & Sind Bank

Punjab & Sind Bank is an Indian nationalised bank. It is under the ownership of Ministry of Finance, Government of India with its head office located in New Delhi. As of 31 March 2020, the bank has 1526 branches which are widely spread across India out of which 635 branches are in the state of Punjab, and 25 zonal offices located all over India.
Punjab & Sind Bank`s primary business is taking deposits, and making advances and investments, and is principally divided into retail banking, corporate banking, priority sector banking, treasury operations and other banking services such as agency functions for insurance, distribution of mutual funds and pension and tax collection services. The bank has various deposit products, such as current, savings and term deposits for their customers. In retail banking, bank provides loan and advances for housing, trade, automobiles, consumer durables, education and personal loans. The bank also provides commercial banking products and services to corporate customers, including mid-sized and small businesses and government entities. In corporate banking, their loan products include term loans to finance capital expenditure of assets across various industries as well as short-term loans, cash and export credit and other working capital financing and bill discounting facilities.
 Fundamentals

 Shareholdings