Public sector banking was enlarged on 15th April 1980 with the nationalization of six more Indian banks, whose demand and time liabilities exceeded Rs. 200 crore on 14th March 1980. The six banks were acquired under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980. The names of the banks are given below.
Even after nationalisation, the names of the banks were retained. However, the term Ltd. was dropped from the names as Central Government has now become the only shareholder of each nationalised bank.
The Government as a shareholder will not have ‘limited liability’ as in the case with shareholders of limited companies or institutions. Hence, the word ‘Limited’ was dropped. The nationalised banks are subsequently referred as ‘Public Sector Banks’.