Question

Arrange the following banks of India in ascending order of their establishment from early to latest.
(A) HDFC Bank
(B) Kotak Mahindra Bank
(C) Bank of Baroda
(D) Union Bank of India
Choose the correct answer from the options given below:

• A. (D), (C), (B), (A).
• B. (C), (D), (A), (B).
• C. (C), (D), (B), (A).
• D. (D), (C), (A), (B).

Hint:

- Swadeshi era banks (Bank of Baroda, Union Bank) are pre-independence institutions.
- HDFC belongs to the first wave of post-1991 private banks, whereas Kotak Mahindra transitioned to a commercial bank in the early 2000s.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
The banking system in India evolved through distinct phases: the pre-independence era, the nationalization phase, and the post-liberalization era which saw the rise of new-generation private banks.

Step 2: Detailed Explanation:
Let us trace the founding years of each bank:
- (C) Bank of Baroda:
Founded on July 20, 1908, by Maharaja Sayajirao Gaekwad III of Baroda, making it one of the oldest public sector banks established during the Swadeshi movement.
- (D) Union Bank of India:
Inaugurated by Mahatma Gandhi on November 11, 1919, and incorporated as a joint-stock company before nationalization.
- (A) HDFC Bank:
Incorporated in August 1994 as a new-generation private sector bank following the financial sector liberalizations of 1991.
- (B) Kotak Mahindra Bank:
Originally established as a non-banking financial company in 1985, it received a commercial banking license from the RBI and began operations in February 2003.
Arranging the banks in ascending order from early to latest:
\[ \text{Bank of Baroda (C) [1908]} \rightarrow \text{Union Bank of India (D) [1919]} \rightarrow \text{HDFC Bank (A) [1994]} \rightarrow \text{Kotak Mahindra Bank (B) [2003]} \]
This matches the sequence (C), (D), (A), (B).

Step 3: Final Answer:
The correct option is (B).