Bank of India is a Government of India owned public sector bank. It is not a private bank. The central government holds a decisive majority stake in Bank of India — classifying it firmly as a nationalised, government-controlled banking institution. This means your deposits carry the implicit backing of the Indian government, the bank participates in all major government welfare and lending schemes, and its top leadership appointments involve government approval.
Bank of India — Quick Overview
| Detail | Information |
| Bank Name | Bank of India |
| Founded | 7 September 1906 |
| Origin | Mumbai, Maharashtra, India |
| Founded By | Group of eminent businessmen from Mumbai |
| Type | Public Sector Bank (Government Bank) |
| Nationalised | 19 July 1969 |
| Headquarters | Mumbai, Maharashtra, India |
| Government Stake | Approx. 81.41% (as of 2025) |
| Listed On | BSE and NSE |
| Regulator | Reserve Bank of India (RBI) |
| Tagline | Relationship Beyond Banking |
The History of Bank of India
Bank of India was established on 7 September 1906 in Mumbai — founded by a distinguished group of businessmen from the city who wanted to create a professionally managed Indian bank that could serve both domestic and international commerce.
From its very beginning, Bank of India had a distinctly international orientation — reflecting the commercial character of Mumbai as India’s financial capital. The bank opened its first overseas branch in London in 1946, making it one of India’s pioneering banks in international banking. This global ambition was woven into the bank’s identity from early on — and is reflected in its tagline “Relationship Beyond Banking” and its extensive overseas network today.
Through the first half of the 20th century, Bank of India grew steadily — building a solid reputation for commercial banking, trade finance, and international transactions. By the time of nationalisation, it was one of India’s most important financial institutions, with a well-established presence across the country and beyond.
The 1969 Nationalisation — How Bank of India Became a Government Bank
The single most important event in Bank of India’s ownership history is the nationalisation of 1969. On 19 July 1969, Prime Minister Indira Gandhi made one of the most consequential economic decisions in independent India’s history — nationalising 14 major Indian banks through a Presidential Ordinance. Bank of India was among these 14 banks.
The government’s decision to nationalise these banks was driven by several key objectives. The ruling government wanted to direct banking resources towards priority sectors such as agriculture, small industries, and rural development — areas that private commercial banks had been neglecting in favour of more profitable urban and corporate lending. There was also a desire to prevent the concentration of economic power in a few private business families who controlled the major banks, and to ensure that banking services reached the masses across India’s villages and small towns.
From 19 July 1969 onwards, Bank of India formally became a government-owned public sector bank — with the Government of India replacing private shareholders as the controlling authority. This ownership structure has remained unchanged to this day, with the government continuing to hold over 80% of the bank’s equity.
Current Shareholding Pattern
Bank of India is publicly listed on both BSE and NSE — which means retail investors, mutual funds, and foreign institutions can and do hold minority stakes in the bank. However, the Government of India’s majority stake ensures full government control over the institution’s strategic direction, leadership appointments, and policy priorities.
| Shareholder Category | Approximate Stake |
| Government of India | 81.41% |
| Foreign Institutional Investors | 5-7% |
| Domestic Institutional Investors | 6-8% |
| Public and Retail Investors | 5-7% |
The government’s approximately 81.41% stake is one of the highest among India’s nationalised banks — reflecting the Centre’s strong and continued commitment to owning this institution. This high ownership percentage also means that the bank’s decisions are closely aligned with national economic priorities and government banking policies.
Key Facts About Bank of India Today
Bank of India has grown into one of India’s major banking institutions over its 118-year history. Here are the key numbers that define its current scale:
- Branches — Over 5,100 branches spread across India
- ATMs — Over 5,000 ATMs nationwide
- International Presence — Operations in 22+ countries across 5 continents — making it one of India’s most internationally active public sector banks
- Total Business — Consistently among India’s top public sector banks by loan book and deposit base
- Employees — Over 45,000 employees across domestic and overseas operations
Services Offered by Bank of India
Being a full-service public sector bank, Bank of India offers an extensive range of banking and financial products that serve individuals, businesses, farmers, and government programmes alike.
For individual customers, the bank provides savings accounts, current accounts, fixed and recurring deposits, home loans, personal loans, vehicle loans, education loans, and gold loans. Senior citizen schemes and special savings products cater to retired and elderly customers.
For businesses, Bank of India offers working capital finance, term loans, trade finance, cash management, and treasury services — leveraging its strong international network for trade-related banking. Small and medium enterprises have access to dedicated MSME lending products and government guarantee-backed schemes.
Agriculture remains a core focus — Kisan Credit Cards, crop loans, farm equipment financing, and rural infrastructure lending fulfil Bank of India’s priority sector obligations and its broader financial inclusion mandate.
On the digital front, Bank of India’s StarConnect mobile banking application, internet banking, UPI integration, and digital payment services have modernised its customer interface significantly — bridging the gap between traditional government banking and the digital-first expectations of today’s consumers.
Bank of India vs Private Banks — Key Differences
Many customers compare Bank of India with private sector banks before making their banking choice. Here are the key differences:
| Feature | Bank of India (Government) | Private Banks |
| Ownership | Government of India majority | Private shareholders |
| Home Loan Rates | Often competitive — especially for government schemes | Competitive but vary |
| Government Schemes | Primary implementation partner for PM schemes | Limited participation |
| Branch Network | Extensive pan-India including rural areas | Stronger in urban areas |
| Deposit Safety | Government backing plus DICGC insurance | DICGC insurance |
| International Banking | Strong — 22+ country network | Varies by bank |
| Digital Services | Improving steadily | Generally stronger |
Is Bank of India Safe for Deposits?
As a majority government-owned bank, Bank of India carries the implicit backing of the Government of India — which is the strongest possible assurance for depositors in the Indian banking system. Additionally, all deposits up to ₹5 lakh per depositor are statutorily insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC) — a subsidiary of the Reserve Bank of India.
Bank of India is also fully regulated and supervised by the Reserve Bank of India — ensuring compliance with all prudential norms, capital adequacy requirements, and consumer protection regulations. For Indian depositors, a government-owned bank like Bank of India represents one of the safest homes for their savings.
Frequently Asked Questions (FAQs)
Q: Is Bank of India a government or private bank?
A: Bank of India is a Government of India-owned public sector bank. The central government holds approximately 81.41% stake — making it a nationalised government bank.
Q: When was Bank of India founded?
A: Bank of India was founded on 7 September 1906 in Mumbai by a group of prominent businessmen.
Q: When was Bank of India nationalised?
A: On 19 July 1969 — as part of PM Indira Gandhi’s historic decision to nationalise 14 major Indian banks.
Q: Who owns Bank of India?
A: The Government of India is the majority owner with approximately 81.41% stake. The remaining equity is held by institutional investors and public shareholders on BSE and NSE.
Q: How many branches does Bank of India have in India?
A: Over 5,100 branches spread across the country.
Q: Does Bank of India operate internationally?
A: Yes — Bank of India operates in 22+ countries across 5 continents, making it one of India’s most internationally active public sector banks.
Q: Is Bank of India safe for deposits?
A: Yes — as a government-owned bank regulated by RBI, with implicit government backing and DICGC insurance up to ₹5 lakh per depositor, Bank of India is considered very safe.
Q: Is Bank of India listed on stock exchanges?
A: Yes — Bank of India is listed on both BSE and NSE, though the government retains the majority equity stake.
Q: What is Bank of India’s tagline?
A: “Relationship Beyond Banking.”
Q: What digital banking services does Bank of India offer?
A: Bank of India’s StarConnect mobile app, internet banking, UPI services, and digital payment solutions serve the bank’s digital banking customers.
