Public Sector Banks
There are in all 27 banks in the public sector, comprising the State Bank of India and its 7 associate banks viz. State Bank of Patiala, Travancore, Hyderabad, Bikaner and Jaipur, Mysore, Indore and Saurashtra, 14 commercial banks in the private sector nationalised in July 1969, and 6 more commercial banks nationalised in April 1980. (One public sector bank, New Bank of India was merged with Punjab National Bank in September 1993).

The State Bank of India is the largest commercial bank. It has close association with the Reserve Bank and by virtue of being the Bank's principal agent, it has been entrusted with the conduct of government business at a number of its branches. The State Bank has delegated the agency functions to some of the branches of its seven associate banks.