Union Bank of India is a Government of India owned public sector bank. It is not a private bank. The central government holds a dominant majority stake — making it a fully nationalised, government-controlled banking institution. As a public sector bank, Union Bank of India carries the implicit backing of the Government of India, actively implements all major government schemes, and operates under the oversight of the Ministry of Finance alongside the Reserve Bank of India.
Union Bank of India — Quick Overview
| Detail | Information |
| Bank Name | Union Bank of India |
| Founded | 11 November 1919 |
| Origin | Mumbai, Maharashtra, India |
| Type | Public Sector Bank (Government Bank) |
| Nationalised | 19 July 1969 |
| Headquarters | Mumbai, Maharashtra, India |
| Government Stake | Approx. 74.76% (as of 2025) |
| Listed On | BSE and NSE |
| Regulator | Reserve Bank of India (RBI) |
| Tagline | Good People to Bank With |
The History of Union Bank of India
Union Bank of India was founded on 11 November 1919 in Mumbai — established by a group of Indian business leaders who wanted to create a professionally managed Indian banking institution. The bank was inaugurated by none other than Mahatma Gandhi himself — a historic connection that underscores how deeply Union Bank of India was associated with the Indian nationalist movement and the swadeshi philosophy of building Indian institutions.
From Mumbai, Union Bank grew steadily — developing particular strengths in commercial banking, trade finance, and MSME lending. It built a solid reputation over the following decades as a reliable, professionally managed institution — earning the trust of individual, business, and agricultural customers across India.
The 1969 Nationalisation
Union Bank of India was among the 14 banks nationalised by Prime Minister Indira Gandhi on 19 July 1969. The nationalisation aligned with the bank’s existing community orientation — government ownership reinforced its mandate to serve priority sectors and drive financial inclusion across India. Post-nationalisation, the bank expanded aggressively — extending its reach beyond Maharashtra into other states and rural areas.
The 2020 Mega Merger
In April 2020, the Government of India merged Andhra Bank and Corporation Bank into Union Bank of India — as part of its major banking consolidation exercise. This three-way amalgamation created a significantly larger institution — making Union Bank of India the fifth-largest public sector bank in India by business volume.
The merger brought together three government-owned banks — combining their branch networks, customer bases, and balance sheets into one stronger, larger entity. Post-merger, Union Bank’s scale and geographic reach increased substantially — strengthening its position across South India where both Andhra Bank and Corporation Bank had strong historical presences.
Current Shareholding Pattern
| Shareholder Category | Approximate Stake |
| Government of India | 74.76% |
| Foreign Institutional Investors | 8-10% |
| Domestic Institutional Investors | 8-10% |
| Public and Retail Investors | 8-10% |
Key Facts and Services
Union Bank of India today operates over 8,500 branches and 9,000+ ATMs — one of the largest networks among public sector banks. It employs over 75,000 people. For retail customers, the bank offers savings accounts, home loans, vehicle loans, personal loans, education loans, and gold loans. The Union Bank Mobile app and internet banking platform serve digital customers. Agricultural lending and MSME finance remain core strengths. The bank actively implements PM Awas Yojana, PM Mudra Yojana, and other government schemes.
Frequently Asked Questions (FAQs)
Q: Is Union Bank of India a government or private bank?
A: Union Bank of India is a Government of India-owned public sector bank. The central government holds approximately 74.76% stake.
Q: When was Union Bank of India founded?
A: On 11 November 1919 in Mumbai.
Q: Who inaugurated Union Bank of India?
A: Mahatma Gandhi inaugurated Union Bank of India — a historic connection to India’s independence movement.
Q: When was Union Bank of India nationalised?
A: On 19 July 1969 — as part of PM Indira Gandhi’s nationalisation of 14 major Indian banks.
Q: Which banks merged into Union Bank of India?
A: Andhra Bank and Corporation Bank merged into Union Bank of India in April 2020.
Q: How many branches does Union Bank of India have?
A: Over 8,500 branches across India.
Q: Is Union Bank of India safe for deposits?
A: Yes — government-owned, RBI-regulated, with DICGC insurance up to ₹5 lakh per depositor.
