First, all banks in India which was the period before independence in private banks, was the banking needs of individuals. In 1921, Bengal, namely, Bank, Bank, Mumbai, Chennai and three major banks, Bank of India became the Imperial Bank. In 1935, the Reserve Bank of India (RBI) was established and the Imperial Bank of India, IBI's work for commercial banks to transfer the responsibility of the Central Bank took over. After the announcement of the first five in 1955, the year of the plan, Imperial Bank of India State Bank of India (SBI) of the sequence was.

After the nationalization of major banks in India came on 19 July 1969. 14 Government of India and India's largest nationalized bank, Punjab National Bank (BSP), Allahabad Bank, Canara Bank, Central Bank of India, etc., then the banks involved in the public to accept a major role in the banking structure of a rule . In 1980, the Government of India that India's banking business at 91% of control 6 other nationalized banks.

In 1994, the Reserve Bank, the new so called - with banking experience in the production technology of the license number of private banks have a policy of liberalization. Global Trust Bank, the liberalization of the first private bank, but later the Oriental Bank of Commerce (OBC) with merged. The Housing Development Finance Corporation Limited (HDFC) for the first (still available) for a theory "in a private sector bank, the Reserve Bank of India (RBI) of the" been approved.

At present, banks, private banks in India, ICICI Bank, ING Vysya Bank Jammu and Kashmir Bank, Karnataka Bank, Kotak Mahindra Bank, State Bank of India and International Bank of Commerce, etc., are without a doubt, the technology experience and full of experience, private banks in the banking industry in India has an important role in the development. Is that banks are more efficient and easier. The public sector banks and has shaken the complacency and forced to become more competitive in this process.