Which among the following is the oldest Public Sector Bank of India?

Question

Question

This question was previously asked in

NPCIL Assistant Grade-1 (Preliminary) Official Paper-I (Held On: 08 Sept, 2018)

Answer 1

The correct answer is Allahabad Bank.

Key Points

Allahabad Bank was founded on 24 April 1865, making it the oldest public sector bank in India.
The bank was established in Allahabad, Uttar Pradesh, during the British Raj.
In 2020, Allahabad Bank merged with Indian Bank as part of a consolidation plan by the Government of India.
Before its merger, Allahabad Bank had a wide presence with over 3,000 branches across India.

Additional Information

Public Sector Banks (PSBs):
- These are banks where the majority stake is held by the Government of India.
- PSBs play a crucial role in the financial inclusion and economic development of the country.
Bank Mergers in India:
- In recent years, the Indian government has merged several PSBs to create larger and stronger banks.
- The mergers aim to improve efficiency, reduce the number of non-performing assets (NPAs), and enhance the overall financial stability of the banking sector.
Indian Bank:
- Founded in 1907 and headquartered in Chennai, Tamil Nadu.
- After the merger with Allahabad Bank, Indian Bank became one of the largest public sector banks in India.
Banking Sector Reforms:
- The Indian government has undertaken various reforms to strengthen the banking sector, including the introduction of the Insolvency and Bankruptcy Code (IBC) and recapitalization plans.
- These reforms aim to address issues such as NPAs, improve governance, and ensure better management of resources.