Here is the comprehensive list of types of banks and a brief introduction about the types of bank with few fact files.
Public Sector Banks
The banks in which the majority shares or equity are held by the government of the country are known as Public sector banks. A Nationalized bank is formed when the assets of the bank is taken under public ownership.
Public sector banks have greater support or backing of the government. The decisions are generally taken keeping in mind the welfare of the general public. At present there are 27 PSBs (6 SBI and Associates+ 20 nationalized banks + 1 IDBI) in India.
Private Sector Banks
The banks whose majority shares or equity are held by private share holders are classified as Private sector banks. Private sector banks are managed and controlled by private lenders. Interest rates are slightly higher in these banks.
Few private sector banks in India are:
- ICICI Bank
- Axis Bank
- ING Vysya Bank
- Federal Bank
- Dhan Laxmi Bank
- Jammu and Kashmir Bank
- Yes Bank
- Kotak Mahendra Bank
- Industrial Bank
- These banks are owned by customers following the principle of “one person one vote”.
- These banks are often regulated by both banking and co-operative legislators.
- They provide services as savings and loans to both members and non-members. Some cooperative banks are also traded in the stock market as such their ownership might get passed onto non-members. This results in the formation of Semi-co-operative banks.
- Local branches form their own board of directors and take their own decisions. But more strategic decisions are taken by the central Board.
Land Development Banks
- Provides long term loans.
- It is based on Cooperative banking.
- Main function: to promote development of land, agriculture and increase agriculture production.
- Land development Banks provide long term loan to their members through their branches.
State Bank of India(SBI)
Established in 1806 as Bank of Calcutta. Later when two other presidential banks: Bank of Bombay and Bank of Madras joined with Bank of Calcutta, it became Imperial Bank of India.
Imperial bank of India was nationalized in 1955 when RBI took over 60% of its shares. In 2008, Government of India took over the shares from RBI.
Currently it is the biggest and the largest banking and financial Service company in India.
The current asset of SBI (December 2013) is US$388billion.
SBI has 17000 branches and 190 foreign branches.
Currently Arundhati Bhattacharya is the Chairperson. She took over from Mr. Pratip Choudhury on October 2013.
Under Pradhan Mantri Jan Dhan Yojana, SBI held 11000 camps and opened over 30 lacs accounts by September 2014. (rural-22 lacs, Urban- 8 lacs)
Logo : Blue circle with a small cut at the bottom – this depicts perfection and common man being at the center of the banks business.
- Banker to every Indian
- Pure banking- nothing else
- With you all the way
- Bank of common man
- Nation banks on US.
LIC is the largest non-promoter share holder. SBI employs over 2 lakh employees
Award: SBI won the “Best bank award” in FxPoll of Polls 2014.
Industrial Credit and Investment Corporation of India Bank or ICICI banks as it is known now is a private sector bank.
In September 2013 started “Pocket of ICICI Banks”. Under this scheme:
- Split and share : allows customer to split and track group expenses. He/ She can also remind a friend for payment.
- Pay –a- friend : allows customer to transfer funds to their friends without knowing their account number, bank branch, Branch IFSC code etc. Through this customers can create electronic coupons that can be redeemed by their friends from bank branch.
Operation Red Spider : High ranking officers involved in money laundering in 2013. CobraPost sting operation named Operation Red Spider exposed the officers who agreed to convert black money into white which is prohibited under banking norms by RBI. ICICI suspended 18 employees and faced fine imposed by RBI.
Award 2014: According to Brand Trust Report 2014, ICICI bank ranked 28th among India’s most trusted brands. (Research conducted by Trust Research Advisory)
Export Credit Guarantee Corporation (ECGC)
Export Credit Guarantee Corporation India Limited is a government of India Undertaking. It is Under Ministry of Commerce.
Slogan: You focus on export. We cover the risks.
- To provide insurance cover in respect of risks in export trade. Risks involve: Loss of money on account of foreign buying becoming bankrupt or sudden import or exchange restrictions resulting in stoppage of payments.
- ECGC offers export credit insurance for bankers and financial institutions to enable exporters to obtain better facilities from them.
- Provide overseas investment insurance to Indian Companies investment in joint ventures abroad in the form of equity or loan.
ECGC has cooperation agreement with MIGA (Multilateral Investment Guarantee Act),an arm of world bank.
- Political insurance for foreign investment in developing countries.
- Technical assistance to improve investment climate.
- Dispute mediation service.