What is a Bank?
A bank is a financial institution whose primary function is to grant loans and receive deposits. Other than this it also provides other financial services such as currency exchange, safe despots and wealth management.
Types of banks:
Among various types of banks- the three important banks are as follows:
- Commercial banks: The primary objective of commercial banks is to provide loans to the customer and deposit money. Commercial banks are also known as the backbone of the banking system. As the name suggests it functions with the aim of gaining profit. It provides finance for investment purposes and therefore makes a profit from it. When a bank lends money to their customers it charges them more interest compared to the interest they provide on the money deposited by the customer. This difference in the interest rate is the net profit of the bank.
- Investment banks: Investment bank deals with the creation of capital for companies, government and other financial entities. They perform various functions like -advice on what the worth of a company, how to deal with acquisition, merger or sale, underwrite new debt and equity securities etc.
- Central banks: Central bank is the bank which provides stability and helps in controlling inflation in the economy by infusing/ divesting the money in the market. It is totally dedicated to the country’s interest. It also formulates monetary policy in the country. Every country has its own Central Bank like China have the People’s Bank of China. India also has its own central bank i.e. Reserve Bank of India.
About Mega-Merger of the bank:
The finance minister Smt. Nirmala Sitamraman has announced the further merger of 10 PSU into 4 after the merger of Vijaya Bank and Dena Bank into the anchor bank- Bank of Baroda on 1st April 2019. Previously in 2017, the government had merged State bank of India with Bhartiya Mahila bank and the rest of the subsidiaries of SBI. The following are the banks which are further to be merged by the government.
- Union Bank of India is the anchor bank in which Andhra bank and corporation bank will be merged.
- Punjab and National Bank is the anchor bank in which Oriental Bank of Commerce and United bank of India will be merged
- Syndicate bank will be merged with Canara bank.
- Allahabad bank will be merged with Indian bank.
Other important points:
- The first bank that was established in India was Bank of Hindustan in the year 1770.
- The second bank that was established after Bank of Hindustan was General Bank of India in the year 1786.
- The oldest bank that still existed in India is SBI. It was earlier named as Imperial Bank of India which was formed in the year 1921 after the merger of three banks i.e. Bank of Calcutta, Bank of Bombay and Bank of Madras.
- The First payment bank in India is Airtel Payments Bank.
- The first Small Finance Bank is the Capital Local Area Bank.
- After the merger, there will be only 12 Public Sectors Banks left in the year 2020 from 27 PSU’s in 2017.
Below is the list of important bank names with headquarters and taglines.
|Bank Name||Bank Headquarters||Official Tagline|
|Allahabad Bank||Kolkata||A tradition of trust|
|Andhra Bank||Hyderabad||Where India Banks|
|Axis Bank||Mumbai||Badhti ka naam zindagi|
|Bank of Baroda||Vadodara||India’s international Bank|
|Bank of India||Mumbai||Relationship beyond Banking|
|Bank of Maharashtra||Pune||Ek parivaar, ek Bank|
|Bandhan Bank||Kolkata||Apka bhala, sabki bhalai|
|Canara Bank||Bengaluru||Together we can|
|Central Bank of India||Mumbai||Central to since 1911|
|Corporation Bank||Mangalore||Prosperity to all|
|Citi union Bank||Tamil Nadu||Trust and excellence since 1904|
|Dena Bank||Mumbai||Trusted family Bank|
|Dhanlaxmi Bank||Kerala||Tan. Mann. Dhann|
|Federal Bank||Kochi||Your perfect Banking partner|
|HDFC Bank||Mumbai||We understand your world|
|Indian overseas Bank||Chennai||Good people to grow with|
|Indian Bank||Chennai||Your own Bank|
|IDBI Bank||Mumbai||Banking for all aao soche bada|
|ICICI Bank||Mumbai||Hum Hai na/ Khayal apka|
|Indulsand Bank||Mumbai||We make you feel richer|
|IDFC Bank||Mumbai||Banking hatke|
|Kotak Mahindra Bank||Mumbai||Let’s make money simple|
|Karur vyasa Bank||Tamil Nadu||Smart way to Bank|
|Karnataka Bank||Mangalore||Your family Bank across India|
|Lakshmi vilas Bank||Chennai||The changing face of prosperity|
|Oriental Bank of commerce||Gurgaon, Haryana||Where Every individual is committed|
|Punjab national Bank||New Delhi||The name you can Bank upon|
|Punjab and Sindh Bank||New Delhi||Where service is a way of life|
|RBL Bank||Mumbai||Apno ka Bank|
|Syndicate Bank||Manipal , Karnataka||Faithful and friendly|
|State Bank of India||Mumbai||The Banker to every Indian|
|South Indian Bank||Thrissur, Kerala||Experience next generation Banking|
|Union Bank of India||Mumbai||Good people to Bank with|
|United Bank of India||Kolkata||The Bank that begins with “U”|
|UCO Bank||Kolkata||Honours your trust|
|Vijaya Bank||Bengaluru||A friend you can Bank upon|
|Yes Bank||Mumbai||Experience our expertise|
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