History of Banking In India


The story of banking starts from Bank of Hindustan established in 1770 and it was first bank at Calcutta under European Management.
In 1786,General Bank of India was set up.
Three Presidency Banks were set up under charters from the British East India Company-Bank of Calcutta,Bank of Bombay & Bank of Madras.
1)Bank of Calcutta established in 1806 immediately became the Bank of Bengal.
2)Bank of Bombay(1840)
3)Bank of Madras(1843)

In 1921,these 3 banks merged with each other and Imperial bank of India got birth and in 1955 its nationalized and became the State Bank of India.So,the State Bank of India is the oldest bank of india.

Allahabad Bank which was established in 1865 & working even today.Allahabad bank is also known as Oldest Joint Stock Bank.

The first purely managed by Indian was Punjab National Bank established in Lahore in 1895.

The first Indian commercial Bank which was wholly owned & managed by Indian was Central Bank of India which was established in 1911.Central Bank of India was dream come true of Sir Sorabji Pochkanwala, founder of the bank.

Bank of India was the first Indian bank to open a branch outside India in London in 1946 and the first to open a branch in Europe at Paris.

In major process of nationalization, 7 subsidiaries of the State Bank of India were nationalized by the Indira Gandhi regime.In 1969, 14 major private commercial bank were nationalized with capital of 50 crore.
These 14 banks Nationalized in 1969 are as follows:-
1)Central Bank of India
2)Bank of Maharastra
3)Dena Bank
4)Punjab National Bank
5)Syndicate Bank
6)Canara Bank
7)Indian Bank
8)Indian Overseas Bank
9)Bank of Baroda
10)Union Bank
11)Allahabad Bank
12)Union Bank of India
13)UCO Bank
14)Bank of India

In 1980, 6 more banks were nationalized with the capital of 200 crore.
1)The Andhra Bank
2)The Corporation Bank
3)The New Bank of India(Merged with PNB in 1993)
4)The Oriental Bank of Commerce
5)The Punjab & Sindh Bank
6)The Vijaya Bank

On 19 November 2013,on the occasion of the 94th birth anniversary of former Indian Prime Minister Indira Gandhi ,the first woman bank of india “Bharatiya Mahilla Bank” was established.

Some Facts:
a)Andhra Bank was founded by a Freedom Fighter Dr. Bhogaraju Pattabhi Seetaramayya
b)Canara Bank was the first bank to be given an ISO 9002 cerificate for one of it branches.
c)Punjab National Bank is formed on the effect of Lala Lajpat Rai
d)UCO Bank is the bank which was conceived by Shri GD Birla
e)Union Bank of India is the bank which was inaugurated by Mahatama Gandhi(1919)
f)Bank of Baroda has largest no of branches abroad.It punchline is “India International Bank”.
g)Bengal Bank (1784) first introduced cheque system in India.
h)ICICI bank first introduced internet banking in India
i)SBI first introduced Mutual Fund
j)Central bank of India first introduced Credit card in India

RBI in 1993 gave license to 12 Private bank in 2nd phase. 10 private bank in 1993 and 2 private bank in 2003-04.