A government bank in India, also known as a public sector bank (PSB), is any bank where the Government of India holds more than 50% equity stake. There are currently 12 such banks in India, serving over 500 million customers and holding approximately 60% of total banking assets.
Every india government bank acts as the primary delivery channel for government welfare schemes across urban and rural India. The Reserve Bank of India regulates all public sector banks under the Banking Regulation Act, 1949, ensuring financial stability, capital adequacy, and customer protection.
This complete government bank list covers all 12 with verified data on branches, market cap, interest rates, and services.
What Are Government Banks in India?
Government banks in India, officially called Public Sector Banks (PSBs) or nationalised banks, are banks where the Government of India holds more than 50% of the equity stake.
This makes them accountable to Parliament and subject to government policy directives alongside RBI regulation.
India currently has 12 public sector banks, down from 27 in 2017 following strategic mergers designed to create financially stronger institutions. These banks collectively hold roughly 60% of total banking sector assets.
How Government Banks in India Were Created
The first wave of bank nationalisation occurred on July 19, 1969, when Prime Minister Indira Gandhi nationalised 14 major commercial banks. A second wave on April 15, 1980 added 6 more.
The goal was to direct credit to priority sectors like agriculture, small industries, and underserved communities, and to reduce concentration of economic power.
Government Banks in India List – All Government Banks in India List
This list government bank guide covers all 12 nationalised banks in India ranked by market capitalisation as of early 2026, sourced from official bank disclosures and RBI publications.
| # | Bank Name | Branches | Market Cap | Est. |
|---|---|---|---|---|
| 1 | State Bank of India | 23,085 | ₹9.49 Lakh Cr | 1955 |
| 2 | Bank of Baroda | 8,500 | ₹1.59 Lakh Cr | 1908 |
| 3 | Punjab National Bank | 10,189 | ₹1.48 Lakh Cr | 1894 |
| 4 | Canara Bank | 9,861 | ₹1.40 Lakh Cr | 1906 |
| 5 | Union Bank of India | 8,621 | ₹1.37 Lakh Cr | 1919 |
| 6 | Indian Bank | 5,922 | ₹1.15 Lakh Cr | 1907 |
| 7 | Indian Overseas Bank | 3,269 | ₹70,783 Cr | 1937 |
| 8 | Bank of India | 5,202 | ₹69,531 Cr | 1906 |
| 9 | Bank of Maharashtra | 2,641 | ₹50,678 Cr | 1935 |
| 10 | UCO Bank | 3,302 | ₹37,456 Cr | 1943 |
| 11 | Central Bank of India | 4,608 | ₹34,640 Cr | 1911 |
| 12 | Punjab & Sind Bank | 1,817 | ₹20,620 Cr | 1908 |
Source: BSE/NSE filings, RBI Annual Report 2024–25. Market cap figures are approximate.
Top 12 Government Banks in India
1. State Bank of India (SBI) – Government Bank in India
SBI is India's largest public sector bank and the country's largest bank overall by assets, deposits, branches, and customers. Formed after the nationalisation of the Imperial Bank of India on July 1, 1955, SBI operates in 36 countries with over 450 million customers. Its total business exceeds ₹75 lakh crore.
- Only bank present across all 36 states/UTs and offices in 36 countries
- Introduced Positive Pay System (PPS) for cheque fraud prevention per RBI mandate
- YONO super-app integrates banking, investments, insurance, and shopping
- Participant in RBI's e₹ (digital rupee) CBDC pilot programme
| State Bank of India (SBI) | Details |
|---|---|
| Established | July 1, 1955 |
| Headquarters | Mumbai, Maharashtra |
| Branches | 23,085 |
| ATMs / ADWMs | 63,580+ |
| Market Cap | ₹9.49 Lakh Crore |
| Govt. Stake | ~57% |
| Chairperson | Shri Challa Sreenivasulu Setty |
| Customer Care | 1800 112 211 |
2. Punjab National Bank (PNB) – Government Bank in India
Established in 1894, PNB is India's first fully Indian-owned bank, started in Lahore with ₹2 lakh capital. Today it is the second-largest nationalised bank by branches, after absorbing Oriental Bank of Commerce and United Bank of India in the 2020 merger.
- First Indian bank to appoint external auditors (1895), before it was legally required
- Pioneered the "teller" system in India (1944)
- First nationalised bank to fully migrate all branches to Core Banking Solution (2008–09)
| Punjab National Bank (PNB) | Details |
|---|---|
| Established | May 19, 1894 |
| Founder | Dyal Singh Majithia |
| Headquarters | Dwarka, New Delhi |
| Branches | 10,189 |
| ATMs | 11,822+ |
| Market Cap | ₹1.48 Lakh Crore |
| Govt. Stake | ~73% |
| Customer Care | 1800 1800 |
3. Bank of Baroda – Government Bank in India
Founded in 1908 by Maharaja Sayajirao Gaekwad III, Bank of Baroda has the widest international footprint among Indian PSBs, operating in 17 countries. It absorbed Vijaya Bank and Dena Bank in 2019 and serves 130+ million customers with total business exceeding ₹15 lakh crore.
- Operations in 17 countries, widest international presence among Indian PSBs
- BOB World mobile app enables video KYC account opening for non-customers
| Bank of Baroda | Details |
|---|---|
| Established | July 20, 1908 |
| Founder | Maharaja Sayajirao Gaekwad III |
| Headquarters | Vadodara, Gujarat |
| Branches | 8,500 |
| ATMs | 13,400+ |
| Market Cap | ₹1.59 Lakh Crore |
| Govt. Stake | 63.97% |
| Customer Care | 1800 258 4455 |
4. Canara Bank – Government Bank in India
Founded in 1906 by Shri Ammembal Subba Rao Pai, Canara Bank is headquartered in Bengaluru and absorbed Syndicate Bank in 2020. Known for its strong rural and financial inclusion programmes, it serves 80+ million customers with total business exceeding ₹15 lakh crore.
- Swarna Loan (gold loan) and four categories of personal loans at competitive rates
- Consistently recognised for financial inclusion and rural banking programmes
| Canara Bank | Details |
|---|---|
| Established | July 1, 1906 |
| Founder | Shri Ammembal Subba Rao Pai |
| Headquarters | Bengaluru, Karnataka |
| Branches | 9,861 |
| ATMs | 12,801+ |
| Market Cap | ₹1.40 Lakh Crore |
| Govt. Stake | ~63% |
| Customer Care | 1800 425 0018 |
5. Union Bank of India – India Government Bank
Established in 1919, Union Bank has the Government of India holding 83.49% stake, one of the highest among listed PSBs. It was the first major PSB to fully implement Core Banking Solutions and absorbed Andhra Bank and Corporation Bank in 2020.
- Nari Shakti scheme offers collateral-free working capital loans of ₹2–10 lakh for women-led businesses at ~1% below standard MSME rates
- Multiple national awards for MSME lending, financial inclusion, and HR development
| Union Bank of India | Details |
|---|---|
| Established | November 11, 1919 |
| Founder | Seth Sitaram Poddar |
| Headquarters | Mumbai, Maharashtra |
| Branches | 8,621 |
| ATMs | 8,910+ |
| Market Cap | ₹1.37 Lakh Crore |
| Govt. Stake | 83.49% |
| Customer Care | 1800 208 2244 |
6. Indian Bank – Government Bank in India
Indian Bank, established in 1907 in Chennai, started with a capital of ₹20 lakh and grew to cross ₹12 lakh crore in global business by 2024. It merged with Allahabad Bank in 2020. Indian Bank is among the nine banks selected by RBI for the e₹ (digital rupee) wholesale CBDC pilot launched in November 2022.
| Indian Bank | Details |
|---|---|
| Established | August 15, 1907 |
| Headquarters | Chennai, Tamil Nadu |
| Branches | 5,922 |
| ATMs | 4,937+ |
| Market Cap | ₹1.15 Lakh Crore |
| Govt. Stake | ~73% |
| Customer Care | 1800 4250 0000 |
7. Bank of India – Government Bank in India
Founded in 1906 by prominent Mumbai businessmen and nationalised in 1969, Bank of India is known for zero-balance savings accounts, video KYC-based account opening, and international operations across 22 countries.
| Bank of India | Details |
|---|---|
| Established | September 7, 1906 |
| Headquarters | Mumbai, Maharashtra |
| Branches | 5,202 |
| ATMs | 5,551 |
| Market Cap | ₹69,531 Crore |
| Govt. Stake | ~73% |
| Customer Care | 1800 103 1906 |
8. Central Bank of India – Government Bank in India
Established in 1911, Central Bank of India was the first pure Indian commercial bank managed solely by Indians. With ~93% government stake, it serves retail, corporate, agricultural, and rural clients across 4,500+ branches nationwide.
| Central Bank of India | Details |
|---|---|
| Established | December 21, 1911 |
| Headquarters | Mumbai, Maharashtra |
| Branches | 4,608 |
| ATMs | 4,085 |
| Market Cap | ₹34,640 Crore |
| Govt. Stake | ~93% |
| Customer Care | 1800 203 1911 |
9. Indian Overseas Bank – Government Bank in India
Founded in 1937 by M. Ct. M. Chidambaram Chettyar with a vision to specialise in foreign exchange and overseas banking, Indian Overseas Bank (IOB) is headquartered in Chennai. With ~96% government stake, among the highest of all listed PSBs, IOB serves retail, MSME, and NRI customers through 3,269 branches. It is a key participant in RBI's Priority Sector Lending and Jan Dhan Yojana rollout across Tamil Nadu and Andhra Pradesh.
| Indian Overseas Bank | Details |
|---|---|
| Established | 1937 |
| Headquarters | Chennai, Tamil Nadu |
| Branches | 3,269 |
| Market Cap | ₹70,783 Crore |
| Govt. Stake | ~96% |
| Customer Care | 1800 425 4445 |
10. Bank of Maharashtra – India Government Bank
Established in 1935 and headquartered in Pune, Bank of Maharashtra is the only public sector bank with its roots exclusively in Maharashtra. Despite being one of the smaller PSBs with 2,641 branches, it has consistently ranked among the top PSBs in business growth per employee and net profit margin in recent years. The government holds ~87% stake. The bank is strongly focused on MSME lending, housing loans, and agricultural credit across Maharashtra and Goa.
| Bank of Maharashtra | Details |
|---|---|
| Established | 1935 |
| Headquarters | Pune, Maharashtra |
| Branches | 2,641 |
| Market Cap | ₹50,678 Crore |
| Govt. Stake | ~87% |
| Customer Care | 1800 233 4526 |
11. UCO Bank – Government Bank in India
Founded in 1943 as United Commercial Bank by G. D. Birla, UCO Bank is headquartered in Kolkata and has a particularly strong presence across West Bengal, Odisha, and northeastern states. With ~95% government stake, it serves retail, agricultural, and MSME customers through 3,302 branches. UCO Bank plays a critical role in financial inclusion in eastern India and is an active participant in government-backed schemes such as Pradhan Mantri Jan Dhan Yojana and Kisan Credit Card.
| UCO Bank | Details |
|---|---|
| Established | 1943 |
| Headquarters | Kolkata, West Bengal |
| Branches | 3,302 |
| Market Cap | ₹37,456 Crore |
| Govt. Stake | ~95% |
| Customer Care | 1800 103 0123 |
12. Punjab & Sind Bank – Government Bank List India
Established in 1908 by Bhai Vir Singh, Sir Sunder Singh Majithia, and Sardar Tarlochan Singh, Punjab & Sind Bank carries deep historical roots in serving the Sikh community and Punjab region. Headquartered in New Delhi, it is the smallest PSB by branch count (1,817) and market cap, with the government holding ~98% stake, the highest of all listed public sector banks. Despite its size, it remains a vital banking partner for agriculture-dependent communities in Punjab, Haryana, and Delhi-NCR.
| Punjab & Sind Bank | Details |
|---|---|
| Established | 1908 |
| Headquarters | New Delhi |
| Branches | 1,817 |
| Market Cap | ₹20,620 Crore |
| Govt. Stake | ~98% |
| Customer Care | 1800 419 8300 |
What Services Do Government Banks in India Offer?
Deposit Products – Government Bank in India
All 12 PSBs offer savings accounts (including zero-balance Basic Savings Bank Deposit Accounts under RBI's BSBDA scheme), current accounts, salary accounts, NRI accounts (NRE/NRO/FCNR), fixed deposits, and recurring deposits. If you are looking for a government bank with zero balance account, every PSB offers this under Jan Dhan Yojana and BSBDA. Per RBI guidelines, zero-balance account holders are entitled to a free debit card, 25-leaf cheque book per year, free internet and mobile banking, and at least 4 free ATM withdrawals per month.
Loan Products – Government Bank in India
PSBs are the primary lenders for priority-sector credit in India. Key categories include home loans (with PSB rates often 15–25 bps lower than private banks), personal loans, vehicle loans, education loans (under the Central Sector Interest Subsidy scheme), Kisan Credit Cards for farmers, MUDRA loans for micro-enterprises, and MSME term loans.
Digital Banking – India Government Bank Apps
Every PSB offers internet banking, a mobile app, UPI services, and IMPS/NEFT/RTGS. Notable digital products include SBI's YONO super-app, BOB World, PNB One, and Union Bank's Union Mobile. SBI and Indian Bank are pilot participants in RBI's e₹ (digital rupee) CBDC programme.
Government Schemes – India Government Bank
PSBs are the primary delivery channels for Jan Dhan Yojana, PM Kisan direct benefit transfers, Atal Pension Yojana, PMSBY, PMJJBY, Sukanya Samriddhi, and the Senior Citizens Savings Scheme, programmes private banks do not uniformly offer.
International Banking – Government Bank List India
SBI operates in 36 countries with 229 overseas offices. Bank of Baroda covers 17 countries including the UK, USA, UAE, and Mauritius. Bank of India operates in 22 countries. Key NRI products include NRE/NRO/FCNR accounts, foreign currency loans, and remittance services like SBI's ExpresMoney.
Government Bank Interest Rates (2026)
Indicative rates as of early 2026. Verify at official bank websites before applying.
| Bank | Savings A/C | 1-Yr FD | Home Loan (from) | Personal Loan (from) |
|---|---|---|---|---|
| SBI | 2.70% | 6.80% | 8.50% p.a. | 11.05% p.a. |
| PNB | 2.70% | 6.80% | 8.45% p.a. | 11.40% p.a. |
| Bank of Baroda | 2.75% | 6.85% | 8.40% p.a. | 11.05% p.a. |
| Canara Bank | 2.90% | 6.80% | 8.45% p.a. | 11.25% p.a. |
| Union Bank | 2.75% | 6.70% | 8.35% p.a. | 11.00% p.a. |
⚠️ Rates are indicative. Senior citizens typically get 0.25–0.50% extra on FDs. Always confirm at the bank's official website.
Why Choose a Government Bank in India?
1. Safety and Security Deposits are backed by the sovereign guarantee of the Government of India. Under the DICGC, deposits up to ₹5 lakh per depositor are insured, and the implicit backing of PSBs goes further, as the government has historically never let a nationalised bank fail.
2. Widest Geographic Reach PSBs collectively operate 78,000+ branches and 1.6 lakh+ ATMs, reaching Tier-3, Tier-4 towns and villages where private banks have minimal presence.
3. Affordable Banking Minimum balance requirements are generally lower (zero for Jan Dhan accounts), service charges are regulated, and penalty fees are capped.
4. Priority Sector Lending RBI mandates PSBs to lend 40% of ANBC to priority sectors: agriculture, MSMEs, education, housing, and weaker sections, ensuring credit access where private banks often don't go.
5. Government Scheme Access Jan Dhan, MUDRA, PM Kisan, PM Awas Yojana subsidies, and dozens of Central/State schemes are primarily disbursed through PSBs.
6. Competitive Loan Rates Home loans, education loans, and crop loans from PSBs often carry the most competitive market rates, especially for government employees and farmers.
7. Pension and Salary Disbursements Central and state government salary and pension accounts are routed primarily through SBI, PNB, and Canara Bank.
Government Banks vs Private Banks in India
Many people search for a government bank and private bank list before deciding where to open an account or apply for a loan. Understanding government bank vs private bank differences helps you pick the right option. Whether you are choosing a government bank or private bank, the table below covers every key parameter.
| Parameter | Government Banks (PSBs) | Private Banks |
|---|---|---|
| Ownership | Govt. holds 50%+ stake | Private shareholders majority |
| Safety | Very High (sovereign backing) | High (DICGC insured up to ₹5L) |
| Branch Network | 78,000+ (rural + urban) | ~35,000 (mostly urban) |
| Loan Rates | Generally lower (8.35–8.50%) | Slightly higher (8.50–9.00%) |
| Digital Services | Good, improving rapidly | Excellent (faster innovation) |
| Customer Service Speed | Moderate | Generally faster |
| Minimum Balance | Low / Zero (Jan Dhan) | ₹5,000–₹25,000 typically |
| Priority Sector Schemes | Full access (MUDRA, PM schemes) | Limited |
| NRI Services | Available (SBI, Bank of Baroda lead) | Superior range |
| Govt. Salary / Pension A/C | Primary channel | Limited |
| Premium Credit Cards | Basic to moderate | Wider, premium options |
How Government Banks in India Have Changed Over the Years
Bank Nationalisation – Government Bank in India History
The nationalisations dramatically expanded credit access. Agricultural credit grew from 2% to over 18% of total bank advances within two decades. Branch expansion into rural India was mandated, creating the widest banking network in the developing world.
PSB Mergers – Government Bank List Reduced to 12
The government merged 10 PSBs into 4, reducing the total from 27 to 12. Larger banks have better capital buffers, can absorb NPAs more easily, and can lend more to large infrastructure projects. This was the most significant structural change to Indian PSBs since nationalisation.
EASE Reforms – How Government Bank in India Improved
The Enhanced Access and Service Excellence (EASE) Banking Reforms Index, developed by the Finance Ministry and IBA, has driven PSBs to improve digital services, grievance resolution, MSME credit, and HR governance. By EASE 6.0 (2024), PSBs significantly reduced NPA ratios and improved profitability.
How Government Bank in India Became Profitable
PSBs' gross NPA ratio fell from a historic peak of 14.58% in March 2018 to 2.50% as of September 2025 per RBI data, a multi-decade low. PSBs recorded their highest-ever aggregate net profit of ₹1.41 lakh crore in FY2024, up 30.2% year-on-year. The Capital to Risk-weighted Assets Ratio (CRAR) improved to 15.43% by September 2024, up from 11.45% in March 2015.
RBI Rules Every Government Bank in India Must Follow
.
Capital Adequacy (Basel III) PSBs must maintain a minimum CRAR of 11.5% (including Capital Conservation Buffer), higher than the Basel III minimum of 10.5%.
Priority Sector Lending (PSL) All PSBs must direct 40% of ANBC to priority sectors: 18% for agriculture, 7.5% for micro enterprises, and 10% for weaker sections.
Statutory Liquidity Ratio (SLR) Banks must maintain 18% of NDTL in government securities, cash, or gold.
Cash Reserve Ratio (CRR) PSBs maintain 4% of NDTL as cash with the RBI, a monetary policy tool.
Customer Protection RBI's Banking Ombudsman Scheme provides free grievance redressal. Complaints must be resolved within 30 days or they escalate to the Ombudsman. For authoritative data, refer to the RBI Annual Reports.
Government Banks in India – FAQs
1. How Many Government Banks Are There in India?
There are 12 government banks in India as of 2026, reduced from 27 in 2017 after strategic mergers by the Government of India.
2. Which Government Bank Is Best in India?
SBI is the largest and most trusted government bank in India with 23,085 branches, ₹9.49 lakh crore market cap, and presence in 36 countries.
3. What Are the Government Banks in India?
The 12 government banks in India are SBI, PNB, Bank of Baroda, Canara Bank, Union Bank, Indian Bank, Bank of India, Indian Overseas Bank, Bank of Maharashtra, UCO Bank, Central Bank, and Punjab & Sind Bank.
4. Can Government Access Your Bank Account in India?
Yes, under the Income Tax Act and PMLA, the government can access and freeze accounts with proper legal authority and court orders if required.
Conclusion -
Government banks in India continue to serve as the cornerstone of the nation's financial system. Whether you need a home loan, a savings account, or access to government welfare schemes, every government bank in India on this government bank list offers trusted, RBI-regulated services backed by sovereign guarantee.
Related Articles
- Fastest Instant Loan App
- 7 Days Loan App List in India
- Urgent 500 Loan Without Salary Proof
- 1000 Rupees Loan Instantly App in India
