Nationalization is a process whereby a national government or State takes over the private industry,

Nationalization is a process whereby a national government or State takes over the private industry, organisation or assets into public ownership by an Act or ordinance or some other kind of orders. This strategy has been frequently adopted by socialist governments for transition from capitalism to socialism. Thus, now it becomes easier to understand that all those banks which were taken over through Banking companies Bill are called nationalised banks .We can define Public Sector Banks (PSBs) in India are banks where a majority stake (i.e. more than 50%) is held by a government. Thus at present all the nationalised banks are Public Sector banks. In addition to these, we can also say that IDBI Bank Ltd and SBI are too Public Sector Bank (though not nationalised bank) as GoI has over 50% stake in these bank too.