IBPS Exam Guide 2020

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Difference between Nationalized, Public and Private Sector Bank

Difference between Nationalized, Public and Private Sector Bank

First it is important to know about that there are  how many types of banks. Approximately 75% of aspirant don’t know about that, you know?—Most of the interviewer asks about the difference between nationalized, public and private sector banks. Where most of the aspirant fails to answer the question

So, Banks are classified as public sector or private sector depends on who holds the majority of shares in the bank.


The banks where Government holds the majority share are known as public sector banks. And when private (individuals) hold more than 50% of the shares are known as private sector banks.

To more clarity to topic take an example:


SBI is under public sector bank because govt. is holding approximately 58.60%.

And PNB is also a public sector bank as the government holding 58.87% of share

ICICI is a private sector bank an individual have majority of shares.


Difference between Public Sector Bank and Nationalized Banks

Nationalized banks mean those banks which were “nationalized” under the “Banking Companies Bill”.


In public sector bank government holds a major portion of the shares.  Government holds more than 50% share in public sector banks.


There are 27 public sector banks


SBI and its branch banks – State Bank of India, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Patiala, State Bank of Mysore, and State Bank of Travancore

Some nationalized banks are – Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce, Punjab & Sind Bank, Punjab National Bank, Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India, Vijaya Bank, and The Karur Vysya bank, IDBI bank and Bhartiya Mahila Bank

Private Sector Banks –

Private sector banks are owned by private lenders and controlled by private promoters.

Only 14 private banks were nationalized in 1969

The main reason of that some bank left out because they are very small or a very regional focus to be included in nationalized Banks.


Private sector banks which are nationalized under parliament act 1969 Axis Bank, Development Credit Bank, HDFC Bank, ICICI Bank, IndusInd Bank, Kotak Mahindra Bank, Yes Bank.



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