Financial Institutions
The Indian banking sector is at its peak at this time with many national and international banks offering the best of their services and products to the consumers. The history of Indian banking industry goes back to the 18th century. Bank of Hindustan was the country’s first bank which was established in 1770. It, however, was liquidated later in 1829-32. General Bank of India was the other bank which was established in 1786.
These financial institutions are the very important part of any economy. They offer banking and investment services to the customers by acting as an intermediary between the consumer and the capital/debt markets. They control the supply of money in the economy and market by transferring the funds from the pockets of investors to the companies and individuals in the form of loans, investments and deposits. Some big financial groups are key players in controlling the flow of money in the economic system of the country.
Financial institutions are not just limited to banks. It is a broad term which encompasses investment banks, commercial banks, insurance companies, brokerage firms, credit unions, finance firms, asset management funds among others.
Indian banks come under the aegis of the Reserve bank of India which controls the operations and monetary aspects of the banks in the country. RBI was established in April 1935 and was nationalised in January 1949. Its main function is to ensure smooth and strict guidance and look over the Indian banks.
Indian banks are broadly categorised as- Public Sector Banks and Private Sector Banks. Currently, India has 27 Public Sector Banks and 19 nationalized banks. Apart from these, RBI has also categorised two banks viz. IDBI and Bhartiya Mahila Bank under “Other Public Sector Banks”. Along with these, the country also has a total of 91 commercial banks.
The major banks in the country are:
- Abhyudaya Co-operative Bank Limited
- India Post Payments Bank
- Allahabad Bank
- American Express
- Andhra Bank
- Axis Bank
- Bajaj Finserv
- Bank of Baroda
- Bank of India
- Bank of Maharashtra
- Canara Bank
- Capital First
- Central Bank of India
- Citi Bank
- Citicorp Finance (India) Limited
- Corporation Bank
- Cosmos Bank
- Credila
- DBS Bank
- Dena Bank
- Deutsche Bank
- Dhanlaxmi Bank
- DHFL
- Federal Bank
- HDFC Bank
- HSBC Bank
- ICICI Bank
- IDBI Bank
- India Infoline Finance Limited
- Indiabulls
- Indian Bank
- Indian Overseas Bank
- IndusInd Bank
- J&K Bank
- Karnataka Bank
- Karur Vysya Bank
- Kotak Mahindra Bank
- LIC Housing Finance Limited
- Manappuram Finance
- Muthoot Finance
- Nabard Bank
- Oriental Bank of Commerce
- PNB Housing
- Punjab National Bank
- RBL Bank
- Reliance Home Finance
- Saraswat Bank
- Shriram Housing Finance
- South Indian Bank
- Standard Chartered Bank
- State Bank of Bikaner and Jaipur
- State Bank of Hyderabad
- State Bank of India
- State Bank of Mysore
- State Bank of Patiala
- Sundaram Finance
- Syndicate Bank
- Tamilnad Mercantile Bank
- Tata Capital
- UCO Bank
- Union Bank of India
- Vijaya Bank
- Yes Bank
- United Bank of India
- Shamrao Vithal Co-operative Bank
- Lakshmi Vilas Bank
- City Union Bank
- Punjab and Sind Bank
Some important Small Finance Banks in the country are:
- Small Finance Banks
- Ujjivan Small Finance Bank
- Jana Small Finance Bank
- Equitas Small Finance Bank
- AU Small Finance Bank
- Capital Small Finance Bank
- Fincare Small Finance Bank
- ESAF Small Finance Bank
- North East Small Finance Bank
- Suryoday Small Finance Bank
- Utkarsh Small Finance Bank
These financial institutions are the roots of the economic sector. Lenders, borrowers, investors all play a key role herein. These financial institutions may be governed by RBI but have different products and services on offer. Thus, it is always advisable to compare different financial institutions of their offerings before making the final decision about the products or services one is choosing to opt for. Fintechs like LoansJagat offers an excellent platform for the consumers wherein they can compare different lenders for their offerings on loan in terms of interest rate, loan tenure, EMI etc and choose the most suitable one.
)