BANKING AFFAIRS

Detailed explanation-1: -The largest shareholder (in percentage shareholding) of a nationalized bank is ‘Government of India’. Q. A is allocated as a fixed amount per share, with shareholders receiving a dividend in proportion to their shareholding.

Detailed explanation-2: -The nationalized banks are those banks that were ones owned by the private players but due to the financial or socio-economic exigencies, the ownership was acquired by the government. In more technical terms Nationalised Banks have such an ownership structure where the government is the majority shareholder i.e. >50%.

Detailed explanation-3: -As of July 2020 after the recent mergers of government banks, there are a total of 12 nationalized banks in India. The list of nationalised banks is as follows : State Bank of India. Punjab National Bank (With Merger of Oriental Bank of Commerce and United Bank of India)

Detailed explanation-4: -State Bank of India (SBI), state-owned commercial bank and financial services company, nationalized by the Indian government in 1955.

Detailed explanation-5: -On 1 July 1955, the Imperial Bank of India became the State Bank of India. In 2008, the Government of India acquired the Reserve Bank of India’s stake in SBI so as to remove any conflict of interest because the RBI is the country’s banking regulatory authority.