The Central Bank of India, the country’s first swadeshi (national, indigenous) bank founded and managed by the Parsis of India, is considered as much a Parsi institution as the Tata companies, despite currently being state-owned.
The Parsi community plans to urge the government to safeguard the unique identity of the Central Bank of India, which was established on December 21, 1911, in Bombay by Sir Sorabji Pochkhanawala and freedom fighter Sir Pherozeshah Mehta. As India’s first swadeshi bank, it remains a source of pride for the Parsi community, even under government ownership.
Community Concerns Over a Possible Merger:
Recently, the Surat Parsi Panchayat, the leading charitable body of the Parsi community in Surat, voiced concerns about reports suggesting the bank might merge with another institution to form a larger banking entity.
In a letter to Prime Minister Narendra Modi, Dr. Homi Doodhwala, president of the Surat Parsi Panchayat, emphasized the risk, stating:
“If this merger proceeds, the Central Bank of India will cease to exist under its historic name, losing its original identity as the first swadeshi bank of India.”
The Historical Importance of the Bank
Zerxes Dorz, president and trustee of the Bombay Parsi Panchayat, highlighted the heritage of the Central Bank of India. He said:
“Some have suggested that steps should be taken to preserve this bank. I will certainly write about it. Its history shows that it had ties with the Tata family.”
The bank’s establishment was a direct outcome of the swadeshi movement and is regarded as one of the Parsi community’s most significant contributions to India. In 1969, under Indira Gandhi, it was nationalized and became a prominent government bank, known for pioneering innovations and employing or serving generations of Parsi staff and clients.
Government’s Bank Consolidation Plan
The Indian government is pursuing a plan to merge public sector banks to form larger, more profitable entities. Between 2019 and 2020, banks like Dena Bank, Allahabad Bank, and Syndicate Bank were merged with larger institutions such as Canara Bank, Punjab National Bank, and Bank of Baroda.
The Central Bank of India, with 93.08% government ownership, is among the four banks scheduled for the next round of mergers. The Indian Banks’ Association has not provided any comment on the matter.
