Best Government Bank in India - List of Bank & Private Banks

1. State Bank of 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

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)

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

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

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

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.

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.

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.

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.

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.

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.

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.