Public Sector banks

Public Sector banks

These Banks are characterized by maiority ownership (51 % or more share capital) held by the Government of India. They account for (as at the end of March 2007) about 72% of the banking business of the country. The following is the further classification of Public sector banks

a. The State Bank Group:State Bank of India is the largest bank in India and has more than 1 0,000 branches. It has 7 associate banks namely State Bank of Patiala, State Bank of I ndore, State Bank of Bikaner and Jaipur, State Bank of Saurashtra, State Bank of Mysore, State Bank of Hyderabad and State Bank of Travancore. State Bank of India has many financial subsidiaries such as SBI Life Insurance Company, SBI Mutual Funds, SBI Factors, SBI DFHI, SBI Capitol Markets, and SBI Cards etc. The fist of subsidiaries is indicative of the variety of services that banks render these days.

b. Nationatised BanksNationalised Banks are twenty in number. This group has the largest numberof branches in metro! urban/rural areas throughout the country. [ach of these banks has very large branch network spread over all parts of the country, large deposits and assets base and performs all kinds of core and modern banking functions.

c. Regional Rural Banks (RRBs):Regional Rural Banks were started with a focus on rural development. These are also scheduled banks, but, unlike commercial banks, they are small localized banks operating at district level with 3 or 4 districts as there area of operation. RRBs have been sponsored by public sector banks. Their ownership/capitol is provided jointly by Central Government (50%), concerned State Government (1 5%) and the sponsoring public sector bank (35%). To ensure better viability, RRBs ore being merged at State level.