In India, the Banking Sector has been dominated by Government or Public Sector Banks for last 64 years. In 1954 the All India Rural Credit Survey Committee submitted its report recommending creation of a strong, integrated, state-sponsored, state-partnered commercial banking institution with an effective machinery of branches spread all over the country. The recommendation of this committee led to establishment of first Public Sector Bank in the name of State bank of India on July 01, 1955 by acquiring the substantial part of share capital by Reserve Bank of India, of then Imperial Bank of India. Similarly during 1956-59, as a result of reorganization of princely states, the State Bank of India associate Bank came into
fold of Public sector banking.
On July 19, 1969, the Govt. promulgated Banking Companies (Acquisition and Transfer of Undertakings) ordinance 1969 to acquire 14 bigger commercial banks with with deposits over 50 crores. The main objective behind this bank nationalization was to spread banking infrastructure in rural India and make cheap finance available to Indian farmers.
The second phase of bank nationalization took place in 1980 during the prime ministerial tenure of Indira Gandhi, in which 7 more banks were nationalized with deposits over 200 crores.
List of Nationalized Banks in India:
1. Allahabad Bank
2. Andhra Bank
3. Bank of Baroda
4. Bank of India
5. Bank of Maharashtra
6. Canara Bank
7. Central Bank of India
8. Corporation Bank
9. Dena Bank
10. Indian Bank
11. Indian Overseas Bank
12. Oriental Bank of Commerce
13. Punjab and Sind Bank
14. Punjab National Bank
15. Syndicate Bank
16. UCO Bank
17. Union Bank of India
18. United Bank of India
19. Vijaya Bank