Central Bank of India

Central Bank of India is an Indian public sector commercial bank headquartered in Mumbai. Despite its name, it is not India's monetary authority or central bank; that function belongs to the Reserve Bank of India. Central Bank of India was established on 21 December 1911 by Sir Sorabji Pochkhanawala, with Sir Pherozeshah Mehta serving as chairman. It is generally described as the first commercial bank in India to be completely owned and managed by Indians at the time of its creation. The bank expanded beyond its original base during the early twentieth century. It opened a branch in Hyderabad by 1918 and added a nearby Secunderabad branch in 1925. In 1923, it acquired Tata Industrial Bank following the failure of Alliance Bank of Simla. The institution also participated in the creation of Central Exchange Bank of India, which began operations in London in 1936 as an early Indian exchange bank. Barclays Bank acquired that London institution in 1938. Before the Second World War, Central Bank of India operated a branch in Rangoon, then in British Burma, serving commercial connections between Burma and India. Its business there included remittances, foreign-exchange activity and secured lending to Indian businesses. The Burmese government nationalized those operations in 1963. A defining turning point came in 1969, when the Government of India nationalized Central Bank of India along with 13 other major commercial banks. Nationalization placed the bank within the public-sector banking framework and reinforced its role in extending formal banking, credit and deposit services across the country. The bank later became one of India's early credit-card issuers, introducing cards in 1980 in association with Visa. Its business subsequently broadened across retail banking, corporate and institutional banking, agricultural lending, small-business finance, housing finance, government-related banking and digital channels. Central Bank of India has also used technology initiatives to modernize customer service. On its 108th foundation day, it introduced MEDHA, a robot-banking initiative presented as an early step toward robotic assistance in banking. The bank was among 12 public sector banks recapitalized by the Indian government in 2009. It has maintained a large branch and ATM network with coverage across India. The bank's reported network at 31 March 2021 included 4,608 branches, 3,644 ATMs, ten satellite offices and one extension counter, with a presence across all 28 states, seven of India's eight union territories and 574 district headquarters. The institution has also faced regulatory and reputational challenges. In 2022, it was the last public sector bank to exit the Reserve Bank of India's Prompt Corrective Action framework. While under that framework, restrictions could affect large lending, dividend distribution and operating expenditure. The bank has subsidiaries including Centbank Financial Services Limited and Cent Bank Home Finance; as of 31 March 2025, Central Bank of India held a 64 percent stake in the latter. Its contemporary positioning combines government-backed public-sector credibility with broad geographic reach and a full-service banking model serving households, farmers, businesses and institutions.

Central Bank of India was founded in Bombay on 21 December 1911 by Sir Sorabji Pochkhanawala, with Sir Pherozeshah Mehta as chairman. Its formation was significant in the context of colonial India because it was established as a commercial bank fully owned and managed by Indians. The bank's early development reflected the growth of Indian-controlled financial institutions serving domestic commerce and businesses. The institution expanded geographically in the years before independence. A Hyderabad branch was operating by 1918, followed by a Secunderabad branch in 1925. In 1923, the bank acquired Tata Industrial Bank after the collapse of Alliance Bank of Simla. This transaction strengthened its position and incorporated business associated with an institution founded in 1917 that had opened a Madras branch in 1920. Central Bank of India also participated in Indian international banking. It helped establish Central Exchange Bank of India, which opened in London in 1936. Barclays Bank acquired that exchange bank two years later. Before the Second World War, Central Bank of India maintained a Rangoon branch whose activity focused on commercial links between Burma and India. The branch handled remittances, foreign-exchange transactions and secured loans, with Indian businesses forming much of its customer base. In 1963, Burma's revolutionary government nationalized the operation, which became People's Bank No. 1. The most important post-independence institutional change occurred on 19 July 1969. The Government of India nationalized Central Bank of India together with 13 other large commercial banks. Nationalization moved ownership into the public sector and aligned the bank with national objectives involving deposit mobilization, geographic expansion and wider access to formal credit. It remained a broad-based commercial bank rather than a monetary authority; India's central-bank functions are performed by the Reserve Bank of India. The bank pursued product and service expansion in later decades. In 1980, it was among the first Indian banks to issue credit cards, working with Visa. Its activities developed across deposits, payment products, retail and corporate credit, agricultural lending, small-business banking, housing finance, foreign exchange and electronic banking. It also established or operated financial-services subsidiaries, including Centbank Financial Services Limited and Cent Bank Home Finance. Technology modernization became part of its public-sector banking agenda. On its 108th foundation day, the bank launched MEDHA, a robotic banking initiative intended to provide an early form of automated assistance. In 2009, it was included among 12 public sector banks recapitalized by the Indian government. The bank continued to operate a large national network: figures reported for 31 March 2021 listed 4,608 branches, 3,644 ATMs, ten satellite offices and one extension counter, with coverage across all Indian states, most union territories and hundreds of district headquarters. The bank's recent institutional history includes regulatory stress and subsequent improvement. It was placed within the Reserve Bank of India's Prompt Corrective Action framework, which can limit lending growth, dividends and expenses when a bank has financial or prudential weaknesses. In 2022, Central Bank of India became the last public sector bank to exit that framework. The bank remains an active, government-owned Indian commercial bank with a nationwide distribution model and a service portfolio spanning individuals, farmers, small enterprises, large companies and public institutions.

1. 2024M. V. Rao becomes Indian Banks' Association chairman

   Central Bank of India governor M. V. Rao became chairman of the Indian Banks' Association.

   Source
2. 2022Exits Prompt Corrective Action

   The bank became the final Indian public sector bank to leave the Reserve Bank of India's Prompt Corrective Action framework.

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3. 2009Included in public-sector bank recapitalization

   The Government of India recapitalized Central Bank of India as one of 12 public sector banks.

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4. 1980Credit-card program introduced with Visa

   The bank became one of India's early credit-card issuers through a Visa collaboration.

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5. 1969Indian government nationalizes the bank

   Central Bank of India was nationalized with 13 other major Indian commercial banks.

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6. 1963Rangoon operation nationalized

   The revolutionary government in Burma nationalized Central Bank of India's local operations.

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7. 1938Central Exchange Bank of India acquired by Barclays

   Barclays Bank acquired the London-based exchange bank.

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8. 1936Central Exchange Bank of India begins London operations

   The exchange bank created with Central Bank of India's involvement opened in London.

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9. 1925Secunderabad branch opened

   The bank added a branch in Secunderabad near its Hyderabad operation.

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10. 1923Tata Industrial Bank acquired

    Central Bank of India acquired Tata Industrial Bank following the failure of Alliance Bank of Simla.

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11. 1918Hyderabad branch opened

    The bank had established a branch in Hyderabad by this year.

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12. 1911Bank founded in Bombay

    Sir Sorabji Pochkhanawala established Central Bank of India on 21 December, with Sir Pherozeshah Mehta as chairman.

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A nationwide, government-owned public sector bank combining broad branch access with retail, agricultural, business and institutional banking services.

• Retail bankingBanking services

  The bank's retail business serves individual customers through savings and current accounts, term deposits, payment cards, consumer credit and other personal banking services. Its nationwide branch network supports customers who use both traditional branch channels and digital banking interfaces.

• Retail loansLending

  Central Bank of India provides personal and consumer lending products as part of its retail portfolio. The broader lending business is complemented by housing, education, vehicle and other customer-focused credit categories, although specific product terms and current names are subject to change.

• Agricultural and rural bankingLending

  Agricultural banking supports farmers and rural borrowers through formal credit and related banking services. This line reflects the public-sector bank's role in extending financial access beyond major urban centers and serving India's rural economy.

• Corporate and institutional bankingCommercial banking

  The corporate business provides deposit, credit, transaction and related financial services to companies and institutions. Historically, the bank has also served commercial enterprises engaged in domestic and cross-border activity, including foreign-exchange and remittance-related business.

• Credit cardsPayments1980

  Central Bank of India entered credit-card issuance in 1980 in collaboration with Visa, making it one of the early Indian banks to offer this payment product. Credit cards form part of its wider card and payments portfolio.

• Digital and robotic bankingDigital banking

  The bank operates electronic banking channels and has experimented with technology-led customer assistance. Its MEDHA robot initiative, launched on the bank's 108th foundation day, represented an early publicized effort to introduce robotic interaction into banking services.

• Cent Bank Home FinanceHousing finance subsidiary

  Cent Bank Home Finance is a housing-finance subsidiary associated with Central Bank of India. As of 31 March 2025, Central Bank of India held a 64 percent stake in the company.

• Centbank Financial Services LimitedFinancial-services subsidiary

  Centbank Financial Services Limited is identified as a wholly owned subsidiary of Central Bank of India and extends the group's activities beyond its core commercial-bank structure.

• 2022Exit from Prompt Corrective ActionStrategy

  The Reserve Bank of India's Prompt Corrective Action framework had restricted aspects of the bank's lending, dividend and expenditure decisions.

  What changed. Central Bank of India exited the framework.

  Aftermath. It became the last public sector bank to leave the framework, removing the cited PCA restrictions.

  Source
• 2009Public-sector bank recapitalizationOther

  The Indian government recapitalized a group of public sector banks.

  What changed. Central Bank of India was included among the 12 banks receiving recapitalization.

  Aftermath. The measure supported the bank within the government-owned banking system; the available reference does not specify the amount allocated to it.

  Source
• 1980Visa credit-card launchProduct launch

  Credit cards were still an emerging banking product in India.

  What changed. The bank introduced credit cards in collaboration with Visa.

  Aftermath. Central Bank of India became one of the early Indian issuers of credit cards.

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• 1969Acceptance of nationalizationStrategy

  The Government of India nationalized 14 major commercial banks as part of a broad public-sector banking policy.

  What changed. Central Bank of India was placed under government ownership on 19 July.

  Aftermath. The bank became part of India's public sector banking system and continued operating as a nationwide commercial bank.

  Source
• 1923Acquisition of Tata Industrial BankM&A

  The acquisition followed the failure of Alliance Bank of Simla and expanded Central Bank of India's institutional base.

  What changed. Central Bank of India acquired Tata Industrial Bank.

  Aftermath. The transaction brought Tata Industrial Bank's operations into Central Bank of India.

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• London branch loan fraudControversy

  During the 1980s, managers at the London branches of Central Bank of India, Punjab National Bank and Union Bank of India were caught up in a fraud involving questionable loans to Bangladeshi jute trader Rajender Singh Sethia. Regulatory authorities in England and India forced the three Indian banks to close their London branches.

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• 2024Central Bank of India chairman elected to lead the Indian Banks' Association

  Central Bank of India governor M. V. Rao became chairman of the Indian Banks' Association.

  Leadership change
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• 2022Central Bank of India exits the Reserve Bank of India's Prompt Corrective Action framework

  The bank became the last public sector bank to come out of the framework, which had imposed restrictions relating to lending, dividends and expenses.

  RegulationOther
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• 2009Government recapitalizes Central Bank of India

  Central Bank of India was one of 12 Indian public sector banks included in a government recapitalization program.

  OtherRegulation
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• 1980Central Bank of India introduces credit cards with Visa

  The bank became one of the early Indian banks to issue credit cards, doing so in collaboration with Visa.

  Product launch
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• 1969Central Bank of India is nationalized by the Government of India

  The bank was nationalized on 19 July together with 13 other major Indian commercial banks, making it part of the country's public sector banking network.

  RegulationOther
  Source
• MEDHA robotic banking initiative is launched

  On its 108th foundation day, the bank introduced MEDHA, a robot-based customer-assistance initiative described as an early move toward robotic banking.

  Product launchOther
  Source

1. Central Bank of India
2. Central Bank of India official website