Economy PYQ 38 of 50 · Banking and Financial Inclusion

The first Indian commercial bank which was wholly owned and managed by Indians was:

  1. AState Bank of India
  2. BCentral Bank of India
  3. CPunjab National Bank
  4. DOudh Commercial Bank

BPSC Assistant Section Officer Prelims 2025

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Correct answer: (b) Central Bank of India

Explanation

The Central Bank of India, founded in 1911 in Bombay by Sir Sorabji Pochkhanawala (with Sir Pherozeshah Mehta as its chairman), is recorded as the first Indian commercial bank wholly owned and managed by Indians.

  • The Oudh Commercial Bank (1881, Faizabad) and Punjab National Bank (1894, Lahore) were earlier banks started with Indian capital and boards.
  • The State Bank of India was formed in 1955 from the Imperial Bank of India.
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