The Central Bank of India (CBI) is an Indian public sector bank headquartered in Mumbai. Despite its name, it is not the central bank of India. The Central Bank of India is the Reserve Bank of India.

History

2010 stamp commemorating the 100th anniversary of Sorabji Pochkhanawala and the Central Bank of India

The Central Bank of India was founded on December 21, 1911 by Sir Sorabjee Pochkhanawala and chaired by Sir Perozhisha Mehta. It was the first commercial bank in India to be fully owned and managed by Indians.

Early 20th Century

By 1918, the Central Bank of India established a branch in Hyderabad. In 1925, a branch was opened in nearby Sekonderabad.

In 1923, following the collapse of Union Bank of Shimla, it acquired Tata Industrial Bank. Founded in 1917, Tata Bank opened a branch in Madras in 1920, becoming the Central Bank of India, Madras.

The Central Bank of India played an important role in creating the first Indian foreign exchange bank, the Central Foreign Exchange Bank of India, which opened in London in 1936. However, Barclays acquired the Central Bank of India for Foreign Exchange in 1938.

Also before the Second World War, the Central Bank of India established a branch in Yangon. The branch's business was mainly focused on business between Burma and India, especially remittances through telegraphic transfers. Profits were mainly derived from foreign exchange and margin deposits. The bank also provided loans against land, agricultural products and other assets, mainly to Indian businesses.

After World War II

In 1963, the revolutionary government of Burma nationalized the operations of the Central Bank of India there and became the First People's Bank.

In 1969, the Indian government nationalized the bank along with 13 other banks on July 19.

Nameplate of the Central Bank of India, Shankar Sheth Road Branch, Pune.

Central Bank of India, Brabburn Road Branch (Blue), Kolkata.

The Central Bank of India was one of the first banks in India to issue credit cards in partnership with Visa in 1980.

On the 108th Inauguration Day, the Central Bank of India launched the first step towards a robotic bank, a robot called "MEDHA".

CBI is one of 12 public sector banks in India that was recapitalised in 2009.

As at 31 March 2021, the bank had 4,608 branches, 3,644 ATMs, 10 satellite offices and 1 extension counter. Its pan-India presence covers all 28 states, seven of the eight union territories and 574 district headquarters in all regions of the country.

The Reserve Bank of India's Prompt Corrective Action (PCA) came last in the public sector in 2022. The PCA framework discourages large loans and limits dividend payments and disbursements.

In 2024, the governor of the Reserve Bank of India, MV Rao, became the chairperson of the Association of Indian Banks.

Controversies

In the 1980s, managers of the London branches of the Central Bank of India, Punjab State Bank and Union Bank of India were implicated in a fraud case in which they made questionable loans to Bangladeshi jute trader Rajender Singh Sethia. Regulators in the UK and India forced the three Indian banks to close their London branches.