NATIONALISATION OF BANKS

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MOHAN P

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Jul 18, 2026, 11:44:34 PM (2 days ago) Jul 18

to bankpensioner

Dear Friends,

As usual we used to remember this day every year,especially our generation who were part of it.

While nationalising PSBs on 19th July 1969, the primary objectives were for financial inclusion making banking services including savings and credit facilities accessible to rural and unbanned populations to reduce urban and rural divide.

Promoting priority sector lending , preventing monopolies ,reducing regional imbalances, mobilizing public savings and supporting Govt developments programmes were the concern of then Govt.( may political reasons too might be there)Certainly achievement was remarkable, which we have witnessed

At this juncture,it may be interesting to look back to events took place in banking industry in post nationalisation period.The banks in which many of us worked for three or four decades have become part of the history

and vanished on account of mergers taken place in subsequent years.

Let us see the current scenario of PSBs,after nationalisation of first batch in 1969 and and remaining banks in 1980.

On July 19, 1969, the Government of India nationalised 14 major private commercial banks (those with deposits exceeding ₹50 crores). These banks were:

1. Allahabad Bank

2. Bank of Baroda

3. Bank of India

4. Bank of Maharashtra

5. Canara Bank

6. Central Bank of India

7. Dena Bank

8. Indian Bank

9. Indian Overseas Bank

10. Punjab National Bank

11. Syndicate Bank

12. UCO Bank

13. Union Bank of India

14. United Bank of India

In the second phase of nationalisation on April 15, 1980, the government took control of 6 more banks (those with deposits exceeding ₹200 crores). These were:

1. Andhra Bank

2. Corporation Bank

3. New Bank of India

4. Oriental Bank of Commerce

5. Punjab and Sind Bank

6. Vijaya Bank

Following a series of major consolidations and mergers (most notably in 2017 and 2020), the total number of PSBs has been reduced to 12.Mean while Associate banks of SBI too have merged with SBI.

Currently, the active Public Sector Banks in India are:

· State Bank of India (SBI)

· Punjab National Bank (PNB)

· Bank of Baroda

· Canara Bank

· Union Bank of India

· Bank of India

· Indian Bank

· Central Bank of India

· Indian Overseas Bank

· UCO Bank

· Bank of Maharashtra

· Punjab & Sind Bank

Now talks on further mergers are in the air to reduce the numbers to three or less in the name of making 'Big Bank's to cope up with international ranking!Threat of disinvestment is also cannot be ruled out.

Whatever general public have gained through Nationalisation is slowly vanishing.We may witness further changes in banking industry in coming years!