A Bank is simply a financial institution which carries out deposit and lending activities at large. Banking Sector in India is broadly classified as Scheduled commercial, differential banks and Co-operative Banks. Public sector banks (PSBs), Private Sector Banks and Foreign Banks come within the category of scheduled commercial banks. While Payments Banks, Small finance banks, Local Area Banks & Regional Rural Banks are classified as differential banks. Co-operative Banks have their internal classification, ranging from State Co-operative Banks at the state level, District Central Co-operative Banks at the district level, Urban C0-operative Banks for urban areas & Primary Agriculture Credit Societies at the village level. Let’s go through them one by one to take an overview of the Indian banking sector:

Reserve Bank of India

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RBI Governor: Urjit Patel

Headquarter: Mumbai

In India, RBI is the central banking authority which is also called the mint street. It was established in 1935 as per the RBI Act 1934 under the recommendations of the Hilton Young Commission. Initially, it was a private bank with very less shareholding with the government. But later in 1949, it was nationalised and enormous powers were given to it under the Banking Regulation Act, 1949. It carries out various functions e.g. acts as bankers banks, decide monetary policy, prints money, acts as forex regulator and so on. Read function in detail at RBI functions.

Public Sector Banks

A bank is called Public Sector Bank if more than 50 per cent shareholding is with the government. Currently, there are 21 Public Sector Banks in India including IDBI. Fourteen banks were nationalised in 1969 while six other were nationalised in 1980. Let’s take an overview with exams point of view:

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(1). Allahabad Bank

  • MD & CEO – SS Mallikarjuna Rao
  • Headquarter – Kolkata
  • Tagline – “A Tradition of Trust”.

(2). Andhra Bank

  • MD & CEO – J Packirisamy
  • Headquarter – Hyderabad
  • Tagline – “Where India Banks”.

(3). Bank of Baroda

  • MD & CEO – PS Jayakumar
  • Headquarter – Vadodara
  • Tagline – “India’s International Bank”.

(4). Bank of India

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  • MD & CEO – Dinabandhu Mohapatra
  • Headquarter – Mumbai
  • Tagline – “Relationship Beyond Banking”.

(5). Bank of Maharashtra

  • MD & CEO – A.S. Rajeev
  • Headquarter – Pune
  • Tagline – “Ek Parivaar, Ek Bank”.

(6). Canara Bank

  • MD & CEO – Rakesh Sharma
  • Headquarter – Bengaluru
  • Tagline – “Together we can”.

(7). Central Bank of India

  • MD & CEO – Pallav Mohapatra
  • Headquarter – Mumbai
  • Tagline – “Central to you since 1911”.

(8). Corporation Bank

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  • MD & CEO – Jai Kumar Garg
  • Headquarter – Mangalore
  • Tagline – “Prosperity of All”.

(9). Dena Bank

  • MD & CEO – Karnam Sekar
  • Headquarter – Mumbai
  • Tagline – “Trusted family bank”.

(10). IDBI Bank

  • MD & CEO – Rakesh Sharma
  • Headquarter – Mumbai
  • Tagline – “Aao Sochein Bdaa”.

(11). Indian Bank

  • MD & CEO – Padmaja Chundru
  • Headquarter – Chennai
  • Tagline – “Your own Bank”.

(12). Indian Overseas Bank

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  • MD & CEO – R Subramania Kumar
  • Headquarter – Chennai
  • Tagline – “Good people to grow with”.

(13). Oriental Bank of Commerce

  • MD & CEO – Mukesh Kumar Jain
  • Headquarter – Gurugram
  • Tagline – “Where every individual is committed”.

(14). Punjab National Bank

  • MD & CEO – Sunil Mehta
  • Headquarter – New Delhi
  • Tagline – “The Name you can Bank upon”.

(15). Punjab & Sind Bank

  • MD & CEO – S Hari Shanker
  • Headquarter – New Delhi
  • Tagline – “Where service is a way of Life”.

(16). State Bank of India

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  • Chairman – Rajnish Kumar
  • Headquarter – Mumbai
  • Tagline – “The Banker to every Indian”.

(17). Syndicate Bank

  • MD & CEO – Mrutyunjay Mahapatra
  • Headquarter – Manipal (Karnataka)
  • Tagline – “Faithful and Friendly”.

(18). UCO Bank

  • MD & CEO – Atul Kumar Goel
  • Headquarter – Kolkata
  • Tagline – “Honours your trust”.

(19). Union Bank of India

  • MD & CEO – Rajkiran Rai G
  • Headquarter – Mumbai
  • Tagline – “Good people to bank with”.

(20). United Bank of India

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  • MD & CEO – Ashok Kumar Pradhan
  • Headquarter – Kolkata
  • Tagline – “The Bank that begins with U”.

(21). Vijaya Bank

  • MD & CEO – R.A. Sankara Narayanan
  • Headquarter – Bengaluru
  • Tagline – “A Friend you can bank upon”.

Payments Bank

Payments Banks are set up to increase financial inclusion further by providing small saving accounts and remittance services to migrant labour workforce, low-income households, small businesses, other unorganised sectors and to other users. RBI has issued licences to start payment banks after the recommendations of Dr Nachiket Mor committee of RBI. Payments banks can accept deposits of up to 1 lakh rupees and are not eligible to issue credit cards and carry out lending activities.

RBI had issued licenses to 11 entities to start operations as payments bank. However, currently, just 6 entities have started operations. These are mentioned as:

(1). Airtel Payments Bank

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  • Headquarter – New Delhi
  • Head – Anubrata Biswas
  • Tagline – “Banking is now at your fingertips”.

(2). FINO Payments Bank

  • Headquarter – Mumbai
  • Head – Rishi Gupta
  • Tagline – “Qadar aapki mehnat ki”.

(3). Indian Post Payments Bank

  • Headquarter – New Delhi
  • Head – Suresh Sethi
  • Tagline – “Aapka Bank, Aapke Dwaar”.

(4). Jio Payments Bank

  • Headquarter – Mumbai
  • MD & CEO – H. Srikrishnan
  • Tagline – “Your everyday bank…”.

(5). Paytm Payments Bank

  • Headquarter – Noida
  • CEO – Satish Kumar Gupta
  • Tagline – “Simplifying Payments for India”.

(6). Aditya Birla Payments Bank

  • Headquarter – Mumbai
  • MD & CEO – Sudhakar Ramasubramanian
  • Tagline – “Get to know us better”.

While Airtel Payments Bank was the first to start operating as a payments bank and JIO payments bank is the latest one which has started its operations. Out of 11 entities Cholamandalam Distribution Services, Sun Pharmaceuticals and Tech Mahindra have surrendered their licenses.

Small Finance Banks

The External Advisory Committee for evaluating Applications of Small Finance Banks was headed by Usha Thorat. Small finance banks provide basic banking services of taking the deposit from the public and forwarding loans. These banks were set up with a motive to improve financial inclusion and to provide banking services to sectors which are not served by other banks like small and marginal farmers, small business firms, micro and small industries and unorganised sector.

Currently, ten small finance banks are operating in the country. Out of which Capital Local Area Bank was the first to start operations while Jana small finance bank is the latest one to start operating as a small finance bank. Let’s take a look at them:

(1). Au Small Finance Bank

  • Headquarter – Jaipur
  • Head – Sanjay Agarwal
  • Tagline – “Chalo Aage Badhe”.

(2). Capital Small Finance Bank

  • Headquarter – Jalandhar (Punjab)
  • Head – Sarvjit Singh Samra
  • Tagline – “Vishwas se Vikas tak”.

(3). Equitas Small Finance Bank

  • Headquarter – Chennai
  • Head – P.N. Vasudevan
  • Tagline – “It’s fun banking”.

(4). ESAF Small Finance Bank

  • Headquarter – Thrissur, Kerala
  • Head – R. Prabha
  • Tagline – “Joy of Banking”.

(5). Fincare Small Finance Bank

  • Headquarter – Bengaluru
  • Head – Rajeev Yadav
  • Tagline – “Banking on more”.

(6). Jana Small Finance Bank

  • Headquarter – Bengaluru
  • Head – Ajay Kanwal
  • Tagline – “Paise ki Kadar”.

(7). North East Small Finance Bank

  • Headquarter – Guwahati
  • Head – Rupali Kalita
  • Tagline – “Your doorstep banker”.

(8). Suryoday Small Finance Bank

  • Headquarter – Navi Mumbai
  • Head – R Baskar Bapu
  • Tagline – “A Bank of Smiles”.

(9). Ujjivan Small Finance Bank

  • Headquarter – Bengaluru
  • Head – Samit Ghosh
  • Tagline – “Bhrosa aapke Bhrose par”.

(10). Utkarsh Small Finance Bank

  • Headquarter – Varanasi
  • Head – Govind Singh
  • Tagline – “Aapki Umeed ka khaata”.

Private Sector Banks

When the government shareholding in a bank is less than 50 per cent, it is called a private sector bank. Some major private sector banks are given as:

(1). Axis Bank

  • Headquarter – Mumbai
  • MD & CEO – Amitabh Chaudhary
  • Tagline – “Badhti Ka Naam Zindagi”.

(2). Bandhan Bank

  • Headquarter – Kolkata
  • MD & CEO – Chander Shekhar Ghosh
  • Tagline – “Aapka Bhala, Sabki Bhalai”.

(3). Dhanlaxmi Bank

  • Headquarter – Kerala
  • MD & CEO – T. Latha
  • Tagline – “Tann Mann Dhan”.

(4). Federal Bank

  • Headquarter – Kochi
  • MD & CEO – Shyam Srinivasan
  • Tagline – “Your perfect banking partner”.

(5). HDFC Bank

  • Headquarter – Mumbai
  • MD & CEO – Aditya Puri
  • Tagline – “We understand your world”.

(6). ICICI  Bank

  • Headquarter – Mumbai
  • MD & CEO – Sandeep Bakshi
  • Tagline – “Hum hai naa, Khyaal aapka”.

(7). IDFC Bank

  • Headquarter – Mumbai
  • MD & CEO – Rajiv Lal
  • Tagline – “Banking Hatke”.

(8). Induslnd Bank

  • Headquarter – Mumbai
  • MD & CEO – Ramesh Sobti
  • Tagline – “We make you feel richer”.

(9). Kotak Mahindra Bank

  • Headquarter – Mumbai
  • Head – Uday Kotak
  • Tagline – “Let’s make money simple”.

(10). YES Bank

  • Headquarter – Mumbai
  • Head – Rana Kapoor
  • Tagline – “Experience our Expertise”.

Regional Rural Banks

RRBs sharholding

To read about Regional Rural banks in detail read our post “Detailed overview of Regional Rural Banks“.

Cooperative Banks

The Structure of the Cooperative Banks in India can be broadly classified into two types i.e. Urban Cooperative Banks and Rural Cooperative Banks. Urban Cooperative Banks caters to the financial needs of the customers in the urban and semi-urban areas. While the Rural Cooperative Banks are primarily mandated to ensure the credit flow to the agriculture sector in the rural areas.

Cooperative Banks

Click here to read in detail about Cooperative Banks in India.

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