Banking Institutions and History

Indian Overseas Bank (IOB) acquired Bharat Overseas Bank in 2007. This was part of the consolidation phase in Indian banking where larger public sector banks acquired smaller ones to strengthen the banking system.

Rabobank, a Dutch bank specializing in food and agriculture, launched India's first food and agriculture private equity fund. Rabobank is globally renowned for its focus on food and agricultural financing, making it the logical choice for this pioneering initiative in India.

NABARD (National Bank for Agriculture and Rural Development) is India's apex bank for agricultural and rural credit. It was established in 1982 to oversee and refinance agricultural credit institutions, promote rural development, and support agriculture-related activities. NABARD does not handle real estate or small scale industries directly - those are served by other specialized institutions.

Regional Rural Banks (RRBs) were established in 1975 under the Regional Rural Banks Act specifically to provide banking services and credit to rural areas, particularly farmers and villagers. They combine the local feel and rural outreach of cooperatives with the professional discipline and regulatory framework of commercial banks. ICICI Bank and SBI are commercial banks serving broader segments, while EXIM Bank focuses on foreign trade.

Andhra Bank was the first public sector bank to launch Visa Card services in India, pioneering credit card access through the public sector banking system. While SBI is larger and Bank of Baroda is also major, Andhra Bank took the lead in Visa Card introduction. This was part of financial sector liberalization and modernization efforts in the Indian banking industry.

Bank of India was the first Indian bank to open an international branch, establishing its London branch in 1946. This marked a significant milestone in Indian banking history, paving the way for global expansion of Indian banks.

IDBI is the apex organisation of industrial finance in India.

General Insurance Corporation of India, Life Insurance Corporation of India and UTI provide long term finance to industries.

Unit Trust of India is not affiliated to the Reserve Bank of India.

Correct answer is (1).  

State Bank of Saurashtra was the first subsidiary of SBI to be merged, with the merger completed in 2008. The other subsidiaries listed (Bikaner and Jaipur, Hyderabad, Patiala, Travancore) were merged later in 2017. The question asks which subsidiary nationalized in 1960 has now been merged with SBI - Saurashtra fits this criterion as it was one of the original eight subsidiaries nationalized in 1960 and was the first to be merged back into the parent bank.

The Bank of Hindustan, established in 1770 in Calcutta, was among the first modern banks in India and introduced the cheque facility. Generalised notion of cheques as a payment instrument gained traction in India during the colonial period. The Bank of Hindustan was a pioneering institution in India's banking history, though it eventually failed in 1832-33.

The second wave of bank nationalization in 1980 involved 6 banks: Andhra Pradesh Bank, Corporation Bank, New Bank of India, Oriental Bank of Commerce, Punjab and Sind Bank, and Vijaya Bank. Corporation Bank (founded 1905) was indeed one of these banks, bringing the total nationalized banks to 28 by 1980.