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Hi guys, today we will talk about the Privatisation of Banks and Bank Mergers. Let's explore then.

New Economic Policy was introduced in 1991 that introduced and promoted liberalisation, privatisation and globalisation of the Indian economy with the global economy. To provide support to the Nationalised Public sector Banks, the Government set up a committee under the leadership of Shri. M. Narasimham to advise on the various reforms in the Indian banking industry.

<h2 id="content-id-0">Narasimham committee 1, 1991</h2>

This committee was formed to provide solutions to a vast variety of problems that the banking sector was facing. Some problems were rising NPAs (non-performing assets), lack of rural expansion, high cost for credit, low credit availability and accessibility, lack of financial inclusion.

10 private banks were given licences: Global Trust Bank, ICICI Bank, HDFC Bank, UTI Bank, Bank of Punjab, IndusInd Bank, Centurian Bank, IDBI Bank, Times Bank, Development Credit Bank. 

Out of these 10 banks, 6 are still running: ICICI Bank, HDFC Bank, UTI (Now Axis Bank), IDBI Bank, IndusInd Bank, Development Credit Bank

<h2 id="content-id-1">Privatisation</h2>

India adopted privatisation as a policy in the historic reforms budget of 1991, also known as ‘New Economic Policy’. The IndusInd Bank was the first private bank in India set up in Mumbai in April 1994.

Private Banks: A private sector bank is one in which a private entity, an individual, or a group of people owns the majority of the stock.

Banking Regulation Act of 1949: This Act governs India’s banking sector. The Banking Companies Act of 1949 was passed, and on March 1, 1966, it was renamed the Banking Regulation Act of 1949

Under this legislation, the Reserve Bank of India (RBI):

<ol>
	<li>Issues licenses to commercial banks.</li>
	<li>Regulates shareholder voting and ownership rights.</li>
	<li>Ensures that boards and management are properly appointed.</li>
	<li>Bank operations are regulated, with auditing guidelines.</li>
	<li>Control moratoriums, mergers, and liquidations are all things that need to be considered.</li>
</ol>

Here is a list of some of the private sector banks in India:

<table cellspacing="0" class="Table" style="border-collapse:collapse; border:none; margin-left:27px">
	<tbody>
		<tr>
			<td>
			Bank Name
			</td>
			<td>
			Headquarter
			</td>
			<td>
			Tagline
			</td>
		</tr>
		<tr>
			<td>
			HDFC Bank Ltd.
			</td>
			<td>
			Mumbai, Maharashtra
			</td>
			<td>
			We Understand Your World
			</td>
		</tr>
		<tr>
			<td>
			ICICI Bank Ltd., Industrial Credit and Investment Corporation of India
			</td>
			<td>
			Vadodara, Gujarat
			</td>
			<td>
			Khayal Apka
			</td>
		</tr>
		<tr>
			<td>
			Axis Bank Ltd.
			</td>
			<td>
			Mumbai, Maharashtra
			</td>
			<td>
			Badhti Ka Naam Zindagi
			</td>
		</tr>
		<tr>
			<td>
			Kotak

			Mahindra Bank Ltd.
			</td>
			<td>
			Mumbai, Maharashtra
			</td>
			<td>
			Let’s Make Money Simple Ab 

			Kona Kona

			Kotak
			</td>
		</tr>
		<tr>
			<td>
			IndusInd Bank Ltd.
			</td>
			<td>
			Mumbai, Maharashtra
			</td>
			<td>
			We Care Dil Se, We Make You Feel Richer
			</td>
		</tr>
		<tr>
			<td>
			IDFC First Bank Ltd.
			</td>
			<td>
			Mumbai, Maharashtra
			</td>
			<td>
			Always You First
			</td>
		</tr>
		<tr>
			<td>
			Bandhan Bank Ltd.
			</td>
			<td>
			Kolkata, West Bengal
			</td>
			<td>
			Aapka Bhala, Sabki Bhalai
			</td>
		</tr>
		<tr>
			<td>
			Federal Bank Ltd.
			</td>
			<td>
			Kerala
			</td>
			<td>
			Your Perfect Banking Partner
			</td>
		</tr>
		<tr>
			<td>
			CBS Bank Ltd.
			</td>
			<td>
			Thrissur, Kerala
			</td>
			<td>
			Support all the way
			</td>
		</tr>
		<tr>
			<td>
			DCB Bank Ltd.
			</td>
			<td>
			Mumbai
			</td>
			<td>
			We Value You
			</td>
		</tr>
		<tr>
			<td>
			Dhanlaxmi Bank Ltd.
			</td>
			<td>
			Thrissur, Kerala
			</td>
			<td>
			Tann, Mann Dhan
			</td>
		</tr>
		<tr>
			<td>
			Jammu And Kashmir Bank Ltd
			</td>
			<td>
			Srinagar
			</td>
			<td>
			Serving to Empower
			</td>
		</tr>
		<tr>
			<td>
			Karnataka Bank Ltd
			</td>
			<td>
			Mangalore
			</td>
			<td>
			Your family bank across India
			</td>
		</tr>
		<tr>
			<td>
			Karur Vysya Bank Ltd.
			</td>
			<td>
			Tamil Nadu
			</td>
			<td>
			Smart way to bank
			</td>
		</tr>
		<tr>
			<td>
			Lakshmi Vilas Bank Ltd
			</td>
			<td>
			Tamil Nadu
			</td>
			<td>
			The Changing Face of prosperity
			</td>
		</tr>
		<tr>
			<td>
			Nainital Bank Ltd.
			</td>
			<td>
			Nainital
			</td>
			<td>
			Banking with personal touch
			</td>
		</tr>
		<tr>
			<td>
			RBL Bank Ltd.
			</td>
			<td>
			Maharashtra
			</td>
			<td>
			Apno ka Bank
			</td>
		</tr>
		<tr>
			<td>
			South Indian Bank Ltd.
			</td>
			<td>
			Kerala
			</td>
			<td>
			Apno ka Bank
			</td>
		</tr>
		<tr>
			<td>
			Tamil Nadu Mercantile Bank Ltd.
			</td>
			<td>
			Tamil Nadu
			</td>
			<td>
			 
			</td>
		</tr>
		<tr>
			<td>
			Yes Bank Ltd.
			</td>
			<td>
			Mumbai
			</td>
			<td>
			Experience our expertise
			</td>
		</tr>
		<tr>
			<td>
			IDBI Bank Ltd.
			</td>
			<td>
			Mumbai
			</td>
			<td>
			Banking for All, Aao Sochein Bada
			</td>
		</tr>
	</tbody>
</table>

<h2 id="content-id-2">Bank Mergers</h2>

<table cellspacing="0" class="Table" style="border-collapse:collapse; border:none">
	<tbody>
		<tr>
			<td>
			Banks
			</td>
			<td>
			Merged Banks
			</td>
		</tr>
		<tr>
			<td rowspan="2">
			Punjab National Bank (2020)
			</td>
			<td>
			Oriental Bank of Commerce
			</td>
		</tr>
		<tr>
			<td>
			United Bank of India
			</td>
		</tr>
		<tr>
			<td>
			Canara Bank (2020)
			</td>
			<td>
			Syndicate Bank
			</td>
		</tr>
		<tr>
			<td>
			Indian Bank (2020)
			</td>
			<td>
			Allahabad Bank
			</td>
		</tr>
		<tr>
			<td rowspan="2">
			Union Bank of India (2020)
			</td>
			<td>
			Andhra Bank
			</td>
		</tr>
		<tr>
			<td>
			Corporation Bank
			</td>
		</tr>
		<tr>
			<td rowspan="2">
			Bank of Baroda (2019)
			</td>
			<td>
			Dena Bank
			</td>
		</tr>
		<tr>
			<td>
			Vijaya Bank
			</td>
		</tr>
		<tr>
			<td rowspan="3">
			State Bank of India
			</td>
			<td>
			Subsidiaries of SBI and

			Bhartiya Mahila Bank (2017)
			</td>
		</tr>
		<tr>
			<td>
			State Bank of Indore (2010)
			</td>
		</tr>
		<tr>
			<td>
			State Bank of Saurashtra

			(2008)
			</td>
		</tr>
	</tbody>
</table>

List of Public Sector Banks after Merger:

<table cellspacing="0" class="Table" style="border-collapse:collapse; border:none">
	<tbody>
		<tr>
			<td>
			Bank Name
			</td>
			<td>
			Headquarters
			</td>
			<td>
			Founded (Nationalization)
			</td>
			<td>
			Tagline
			</td>
		</tr>
		<tr>
			<td>
			Bank of Baroda
			</td>
			<td>
			Baroda
			</td>
			<td>
			1908

			(1969)
			</td>
			<td>
			India’s International Bank
			</td>
		</tr>
		<tr>
			<td>
			Canara Bank
			</td>
			<td>
			Bengaluru
			</td>
			<td>
			1906

			(1969)
			</td>
			<td>
			It’s easy to change for those who you love, Together we can
			</td>
		</tr>
		<tr>
			<td>
			Bank of India
			</td>
			<td>
			Mumbai
			</td>
			<td>
			1906

			(1969)
			</td>
			<td>
			Relationships Beyond Banking
			</td>
		</tr>
		<tr>
			<td>
			Central Bank of India
			</td>
			<td>
			Mumbai
			</td>
			<td>
			1911

			(1969)
			</td>
			<td>
			Build a Better Life Around Us
			</td>
		</tr>
		<tr>
			<td>
			Bank of Maharash tra
			</td>
			<td>
			Pune
			</td>
			<td>
			1935

			(1969)
			</td>
			<td>
			One Family One Bank
			</td>
		</tr>
		<tr>
			<td>
			Indian Bank
			</td>
			<td>
			Chennai
			</td>
			<td>
			1907

			(1969)
			</td>
			<td>
			Taking Banking Technology to Common Man, Yourtech- friendly bank
			</td>
		</tr>
		<tr>
			<td>
			Indian Overseas Bank
			</td>
			<td>
			Chennai
			</td>
			<td>
			1937

			(1969)
			</td>
			<td>
			Good People to grow with
			</td>
		</tr>
		<tr>
			<td>
			State Bank of India
			</td>
			<td>
			Mumbai
			</td>
			<td>
			1955
			</td>
			<td>
			Pure Banking, Nothing Else
			</td>
		</tr>
		<tr>
			<td>
			Punjab and Sindh Bank
			</td>
			<td>
			New Delhi
			</td>
			<td>
			1908

			(1980)
			</td>
			<td>
			Where service is a way of life
			</td>
		</tr>
		<tr>
			<td>
			UCO Bank
			</td>
			<td>
			Kolkata
			</td>
			<td>
			1943

			(1969)
			</td>
			<td>
			Honours your trust
			</td>
		</tr>
		<tr>
			<td>
			Punjab National Bank
			</td>
			<td>
			New Delhi
			</td>
			<td>
			1895

			(1969)
			</td>
			<td>
			The name you can bank upon
			</td>
		</tr>
		<tr>
			<td>
			Union Bank of India
			</td>
			<td>
			Mumbai
			</td>
			<td>
			1919

			(1969)
			</td>
			<td>
			Good people to bank with
			</td>
		</tr>
	</tbody>
</table>

Hope learned well. Stay tunned with us for more such blogs.

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