Central Bank of India

Summary

Central Bank of India (CBI) is an Indian nationalised bank. It is under the ownership of Ministry of Finance , Government of India and is one of the oldest and largest nationalised commercial banks in India. It is based in Mumbai, the financial capital of India and capital city of state of Maharashtra.[5] Despite its name it is not the central bank of India; the Indian central bank is the Reserve Bank of India.

Central Bank of India
TypeNationalised Bank
BSE: 532885
NSE: CENTRALBK
IndustryBanking
Financial services
Founded21 December 1911; 110 years ago (1911-12-21)
HeadquartersMumbai, Maharashtra, India
Key people
  • Tapan Ray
    (Non-Exe Chairman) [1]
  • Matam Venkata Rao
    (MD & CEO)
[2]
RevenueDecrease 25,897.44 crore (US$3.4 billion)(2021)[3]
Increase 4,630 crore (US$610 million) (2021)[3]
Increase −888 crore (US$−120 million) (2021)[3]
Total assetsIncrease369,214.99 crore (US$48 billion) (2021) [3]
Total equityIncrease5,875.56 crore (US$770 million) (2021) [3]
OwnerGovernment of India (93.08%) [4]
Number of employees
32,335 (2021)[4]
ParentMinistry of Finance , Government of India
Capital ratio14.81% (2021)[4]
Websitewww.centralbankofindia.co.in

HistoryEdit

 
A 2010 stamp dedicated to Sorabji Pochkhanawala and the 100th anniversary of the Central Bank of India

The Central Bank of India was established on 21 December 1911 by Sir Sorabji Pochkhanawala with Sir Pherozeshah Mehta as Chairman,[6] and claims to have been the first commercial Indian bank completely owned and managed by Indians.[citation needed]

Early-20th centuryEdit

By 1918 Central Bank of India had established a branch in Hyderabad. A branch in nearby Secunderabad followed in 1925.[citation needed]

In 1923, it acquired the Tata Industrial Bank in the wake of the failure of the Alliance Bank of Simla. The Tata bank, established in 1917, had opened a branch in Madras in 1920 that became the Central Bank of India, Madras.[citation needed]

Central Bank of India was instrumental in the creation of the first Indian exchange bank, the Central Exchange Bank of India, which opened in London in 1936. However, Barclays Bank acquired Central Exchange Bank of India in 1938.[7]

Also before World War II, Central Bank of India established a branch in Rangoon. The branch's operations concentrated on business between Burma and India, and especially money transmission via telegraphic transfer. Profits derived primarily from foreign exchange and margins. The bank also lent against land, produce, and other assets, mostly to Indian businesses.[8]

Post-World War IIEdit

In 1963, the revolutionary government in Burma nationalized Central Bank of India's operations there, which became People's Bank No. 1.[9]

In 1969, the Indian Government nationalized the bank on 19 July, together with 13 others.

 
Nameboard of Central Bank of India, Shankar Sheth Road Branch, Pune

Central Bank of India was one of the first banks in India to issue credit cards in the year 1980 in collaboration with Mastercard.[citation needed]

On its 108th Foundation day Central Bank of India launched its first step towards robotic banking, a robot named "MEDHA".

CBI is one of twelve public sector banks in India that was recapitalised in 2009.[10]

As on 31 March 2021, the bank has a network of 4,608 branches, 3,644 ATMs, ten satellite offices and one extension counter. It has a pan-India presence covering all 28 states, Seven out of eight union territories and 574 district headquarters out of all districts in the country.[3]

ControversiesEdit

In the 1980s the managers of the London branches of Central Bank of India, Punjab National Bank, and Union Bank of India were caught up in a fraud in which they made dubious loans to the Bangladeshi jute trader Rajender Singh Sethia.[11] The regulatory authorities in England and India forced all three Indian banks to close their London branches.

ReferencesEdit

  1. ^ "Dena Bank, Punjab & Sindh Bank, Central Bank of India get new chairpersons". The Economic Times. 24 May 2018. Retrieved 3 September 2018.
  2. ^ "canara-banks-executive-director-matam-venkata-rao-appointed-as-new-md--ceo-of-central-bank". newindianexpress.com. Retrieved 3 March 2021.
  3. ^ a b c d e f "Annual Report of Central Bank of India" (PDF).
  4. ^ a b c "Annual Report of Central Bank of India" (PDF).
  5. ^ Central Bank of India Archived 3 March 2016 at the Wayback Machine. Central Bank of India (19 April 2011). Retrieved on 31 March 2014.
  6. ^ "Central Bank IPO to open on 24 July". The Hindu. Chennai, Tamil Nadu India. 14 July 2007. Retrieved 5 July 2008.
  7. ^ Raychaudhuri, Tappan, Irfan Habib, & Dharma Kumar, eds. (1983) The Cambridge Economic History of India: Volume 2, c.1751-c.1970. (CUP Archive). p. 782. ISBN 9780521228022
  8. ^ Turnell, pp. 116–7.
  9. ^ Turnell, p. 226.
  10. ^ "18 govt banks to be recapitalised". Business Standard India. Business-standard.com. 18 February 2009. Retrieved 2 August 2010.
  11. ^ "Businessman Rajender Singh Sethia fought 34-year-long legal battle to prove innocence". The New Indian Express. Retrieved 23 April 2022.

Cited sourcesEdit

  • Turnell, Sean (2009) Fiery Dragons: Banks, Moneylenders and Microfinnance in Burma. (NAIS Press). ISBN 9788776940409