Which of the following banks was not nationalized during the nationalization of banks in 1969?

Correct option is B

• The nationalization of banks began on July 19, 1969, during the tenure of Indira Gandhi.
• The whole process took place in two phases. In 1969, 14 Private Sector Banks were nationalized that accounted for around 80% of the money deposited in banks.
• This major financial step was taken up to reform the lending sector and provide credit to some priority sectors like agriculture and small scale businesses. Then in 1980, another 6 banks were nationalized.
• State Bank of India: The merger of Bank of Calcutta, Bank of Madras and Bank of Bombay in 1921 laid the foundation of Imperial Bank of India.
• In 1955 after the enactment of the State Bank of India Act Imperial Bank was renamed as State Bank of India (SBI).
• Its 60% stake was bought by RBI and SBI came under the control of the Government as Public Sector Undertaking.
• In 1969, SBI was already under the control of the government hence there was no need to nationalize it.
• Therefore, although SBI is a Public Sector Bank but is not included in the list of nationalized banks. Currently, SBI is headquartered in Mumbai.
• Industrial Development Bank of India (IDBI) is another Public Sector Bank that is not nationalized.