Public and Private sector Banks, Co-Operative, Retail, Commercial, Scheduled, Investment and Rural bank

What’s the difference between public sector and private sector bank

In Public sector banks, government holds more than 50% stake. All nationalized banks are public sector banks. There are a total of 27 public sector banks in India. The first nationalized bank was Imperial Bank of India (1955), which later named as State Bank of India. In 1969 14 banks were nationalized and in 1980 another 7 banks were nationalized. Eg: Canara Bank, Syndicate Bank, Corporation bank, Punjab National bank

In private sector banks, stakes are owned by individuals/ general public. Eg: ICICI, HDFC, AXIS Bank, South Indian Bank

Co-operative bank: All co-operative banks are private banks. Co operative Banks in India are registered under the Co-operative Societies Act. In India there are three Tiers of co-operative banking State level, District level and Village level. Co-operative banks are constituted by different states under co-operative societies act. To define “a co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise.” A co-operative bank are formed and owned by members, customers of the banks are also the members. Financial assistance provided by the government for promoting agriculture is generally delivered through co-operative banks. Eg: Kerala State co-operative Bank (Sate), Cannanore District Co-Operative Bank (District), Mayyil Service Co-operative bank (Village)

Scheduled Bank: . One which is listed in RBI’s schedule for schedule banks act of 1934. All nationalized banks are scheduled banks, but not all scheduled banks are nationalized. Scheduled bank can be public, private, foreign banks. Eg: SBI (public), ICICI(Private), American Express Bank Ltd (foreign bank in india)

Investment Bank and Retail Bank: Retail banks are the ones deals with the consumers. They provide savings account, loans etc. Investment banks raise money by selling securities to the government or companies. Eg for Investment Banks: Bajaj Capital, ICICI Securities, Cholamandalam Investment & Finance company. Retails Bank Eg: SBI, ICICI, HDFC etc.

Rural bank: Regional Rural Banks (RRB) was set up to take banking services to rural areas where there is no access to banking services. Eg: North Malabar Gramin Bank, Sarva UP Gramin Bank, Aryavart Gramin bank

Commercial banks: Collect deposit and provide loans to corporate. Eg: SBI & Associative, most of other public and private banks is also have commercial banking.