Earlier before independence all the banks in India were private banks. Private banking in India was experienced when the banking system in India have started. IndusInd Bank was the first private bank in India. It is now one of the fastest growing private sector banks in India. Private bank was run by the group of people who holds all the share of bank. Government don’t hold any share in these banks, Private Banks are publicly listed and traded on stock exchanges. In 1921, the Imperial Bank of India was formed by merging three major private banks Bank of Bengal, Bank of Bombay and Bank of Madras. And in 1935, the Reserve Bank of India has taken all the banking responsibilities from the Imperial Bank of India.

In 1969, the government of India nationalized the 14 largest commercial banks in India. The private sector banks invigorated to take up leading role in the banking structure. There are many private banks in India like Axis bank, ICICI bank, IDBI bank and Federal bank that are providing different services to their customer. People can easily deposit or withdraw their money. They can take advantage of the loans program. In private banks the process of giving loan is quick and easy. You don’t have to show many documents for the loan. Private Banks in India offer different loans like Education loan, Home loan, Car loan, Personal loan, Loan against property.