Private Banks in India – A bank is a financial institution that accepts various types of deposits from the public and builds credit and allows bank depositors to withdraw their money from accounts. The banking system plays a major role in promoting economic growth by efficiently allocating resources. It helps in boosting the economy by converting your savings into investments.
The first bank was established by goldsmiths in Italy in the 12th century. During the British period, the modern banking system in India began with the establishment of the Bank of Hindustan in Calcutta (now Kolkata) by M/s Alexander in 1770, which ceased to function in 1832. The first limited liability bank managed by Indians, the Oudh Commercial Bank, was established in 1881. Subsequently, Punjab National Bank was established in 1894.
India has a rich banking tradition dating back to the Vedic period. In those days, they were known as “Ashraya” (shelter) for the needy and “Karshapana” (money changer) for businessmen.
Benefits of Banks
Banks help you save your money, invest it in a good investment option, and transact through internet banking. Nowadays, a bank account helps us to pay our bills, recharge our mobile, shop online, and make utility payments like electricity bills, gas bills, and telephone bills. If you are planning to buy a car or a house then a bank account helps you in the process of getting a loan for the same. Banks also provide different types of credit cards to their customers where they can access their bank accounts.
In recent years, the banking industry has been booming in terms of technological advancements. There are many benefits associated with having a bank account, and not only is a bank account a secure storage place for your money, but it also gives you online access to your money anytime and anywhere. An online bank account is one of the most popular types of bank accounts today, and with this type of account, you can easily conduct banking transactions on your smartphone, tablet, or computer at the click of a button.
Types of Banks in India
Banks in India are classified into four major categories, which are:
- Commercial Banks
- Private Sector Banks
- Public Sector Banks
- Regional rural banks
- Foreign banks
- Small Finance Banks
- Payments Banks
- Co-operative Banks
What are private sector banks?
Private Sector banks can be defined as banking institutions. Private sector banks are not owned or controlled by the government. It is owned and controlled by the shareholders and is operated for profit. They are also called commercial banks. It is one of the oldest and most important institutions in an economy.
These banks accept deposits from the public and provide loans to individuals and organizations. They also provide other services like safe deposit boxes, currency exchange, forex, international banking services, etc. Private banks are not regulated by the government in any way, whereas public sector banks are highly regulated.
In India, private sector banks are classified into two divisions, which are:
- Old Private sector banks (these banks emerged before 1968)
- New Private sector banks (these banks emerged after the 1990s)
List of Private Banks in India – 2022
|4||City Union Bank||700+||1904||Kumbakonam,|
|6||Dhanlaxmi Bank||270+||1927||Thrissur city,|
|7||Federal Bank||1284||1931||Aluva, Kochi|
|11||IDFC FIRST Bank||260||2015||Mumbai,|
|15||Karur Vysya Bank||779||1916||Karur,|
|16||Kotak Mahindra Bank||1500+||2003||Mumbai,|
|19||South Indian Bank||876||1929||Thrissur,|
|20||Tamilnad Mercantile Bank||509||1921||Tuticorin,|