India’s public sector banking system forms the backbone of the country’s financial infrastructure, with 12 government-owned banks currently serving millions of customers nationwide. These banks, where the government holds at least 51% ownership, are trusted institutions that prioritise financial inclusion and provide essential banking services to both urban and rural populations.
State Bank of India (SBI) leads as the largest government bank with a market capitalisation of ₹7.62 lakh crores and an extensive network of over 22,937 branches. Following SBI, other major players include Punjab National Bank, Bank of Baroda, and Union Bank of India, each offering comprehensive banking solutions backed by government guarantee.
Government banks, also known as public sector banks (PSBs) or nationalised banks, are trusted pillars of India’s financial system. They offer secure savings, affordable loans, and support for government schemes like PMJJBY and Atal Pension Yojana. In 2025, with India’s economy booming, these banks will handle massive assets worth trillions of rupees, serving over 1.4 billion people.
Understanding Government Banks in India: A Foundation for Financial Security
Government banks, commonly known as public sector banks (PSBs) or nationalised banks, are financial institutions where the Indian government holds at least 51% ownership. These banks are pillars of India’s economy, promoting financial inclusion, supporting rural development, and implementing government schemes like Pradhan Mantri Jan Dhan Yojana (PMJDY), Mudra Loans, and Atmanirbhar Bharat initiatives. Nationalisation began in 1969 under Prime Minister Indira Gandhi, when 14 major banks were brought under government control to ensure equitable credit distribution and economic stability. A second wave in 1980 added six more, bringing the total to 20.
By 2025, mergers have streamlined the sector to 12 PSBs, enhancing efficiency and reducing non-performing assets (NPAs). Key mergers include Oriental Bank of Commerce and United Bank of India with Punjab National Bank (PNB) in 2020, and Allahabad Bank with Indian Bank. This consolidation has created stronger entities with better capital adequacy ratios and digital capabilities. PSBs control about 60% of India’s banking assets, serving over 1 billion customers with secure, affordable services.
Why choose a government bank? They offer government-backed security (deposits insured up to ₹5 lakh by DICGC), competitive interest rates, low fees, and priority sector lending for agriculture, MSMEs, and education. Unlike private banks, PSBs focus on social welfare, making them ideal for salaried individuals, farmers, and small businesses. However, they may lag in tech innovation compared to private peers, though digital upgrades are bridging this gap.
How we ranked the top 10 government banks in India
To rank the top 10, I prioritised market capitalisation (market cap) as of July 2025, sourced from BSE India via Forbes India, as it reflects investor confidence, stock performance, and overall scale. Alternative metrics like total assets (from RBI and Moneycontrol reports) and branch networks were cross-referenced for a holistic view. Market cap is dynamic, influenced by stock prices, while assets indicate operational size. For instance, State Bank of India (SBI) dominates both, holding nearly 25% of India’s banking market share.
Here’s a comparison table for quick reference:
| Rank | Bank Name | Market Cap (₹ Lakh Crore) | Total Assets (₹ Crore, Approx.) | Branches | ATMs | Founded | Government Stake (%) |
| 1 | State Bank of India (SBI) | 7.37 | 71,70,899 | 22,542 | 65,000+ | 1955 | 57 |
| 2 | Punjab National Bank (PNB) | 1.30 | 25,37,000 | 10,108 | 12,455 | 1894 | 73 |
| 3 | Bank of Baroda (BoB) | 1.26 | 25,64,000 | 9,693 | 10,033 | 1908 | 64 |
| 4 | Union Bank of India | 1.09 | 21,65,726 | 8,500 | 10,000+ | 1919 | 75 |
| 5 | Canara Bank | 1.03 | 15,20,000 | 9,604 | 12,155 | 1906 | 63 |
| 6 | Indian Bank | 0.85 | 8,08,000 | 5,847 | 4,937 | 1907 | 79 |
| 7 | Indian Overseas Bank (IOB) | 0.76 | 4,17,960 | 3,222 | 3,495 | 1937 | 96 |
| 8 | Bank of India (BoI) | 0.52 | 8,00,000 | 5,100 | N/A | 1906 | 81 |
| 9 | Bank of Maharashtra | 0.43 | N/A | N/A | N/A | 1935 | 91 |
| 10 | UCO Bank | 0.39 | N/A | 3,086 | 2,236 | 1943 | 95 |
(Data compiled from Forbes India, ClearTax, Investkraft, and BankBazaar. Assets are approximate based on 2024-25 reports; exact figures may vary.)
This ranking ensures a balanced view, prioritising larger banks for stability while highlighting growth potential in smaller ones.
Top 10 government banks in India- In-depth analysis
Each profile is detailed with history, services, contacts, and tips for customers, drawn from official sites and reports for accuracy.
1. State Bank of India (SBI): The Giant of Indian Banking
SBI is India’s largest government bank, commanding a quarter of the market with unparalleled reach. Founded as the Bank of Calcutta in 1806, it evolved into the Imperial Bank of India before nationalisation in 1955. Mergers with associate banks (e.g., State Bank of Hyderabad in 2017) and Bharatiya Mahila Bank strengthened its position. As of 2025, SBI serves 48 crore customers, focusing on digital transformation and financial inclusion.
Key Statistics: Market cap ₹7.37 lakh crore, assets ₹71.7 lakh crore, 22,542 branches, 65,000+ ATMs.
Services Offered: Comprehensive range including savings accounts (2.7-3% interest), fixed deposits (up to 7.5%), home loans (7.45% p.a.), car loans (8.4%), education loans (7.1%), personal loans (10.4%), corporate banking, insurance via SBI Life, mutual funds, and digital payments. Unique schemes: YONO for all-in-one banking, PMJDY for zero-balance accounts, and Mudra Loans for MSMEs. SBI emphasises green financing and ESG compliance.
Contact Details:
- Website: https://sbi.co.in/
- Helpline: 1800 11 2211 (toll-free), 1800 425 3800
- Email: customercare@sbi.co.in
- Head Office: State Bank Bhavan, Madame Cama Road, Nariman Point, Mumbai – 400021
- Branch Locator: https://sbi.co.in/web/interest-rates/branch-locator
Digital Tools: YONO app (Android/iOS) for loans, investments, shopping; online banking at bank.sbi for fund transfers, bill payments.
Useful Customer Tips: Update KYC via app to avoid account freezes. SBI offers higher FD rates for seniors (up to 0.5% extra). Recent update: Q2 2025 net profit ₹18,331 crore, up 28% YoY. Ideal for rural customers due to the vast network.
2. Punjab National Bank (PNB): Pioneer in Swadeshi Banking
PNB, the second-largest PSB by market cap, was founded in 1894 by Lala Lajpat Rai as a Swadeshi institution. Nationalised in 1969, it merged with Oriental and United Banks in 2020, boosting assets to ₹25 lakh crore. PNB excels in international banking and MSME support, with 180 million customers.
Key Statistics: Market cap ₹1.30 lakh crore, assets ~₹25 lakh crore, 10,108 branches, 12,455 ATMs.
Services Offered: Savings (up to 3% interest), FDs (6.5-7.25%), home loans (8.4-9%), vehicle loans (8.75%), education loans (8.15%), business loans, wealth management, and government schemes like PMAY. Unique: Digi Loans for instant approvals, PNB One app for UPI, and forex services.
Contact Details:
- Website: https://www.pnbindia.in/
- Helpline: 1800 180 2222 (toll-free)
- Email: care@pnb.co.in
- Head Office: Plot No. 4, Sector-10, Dwarka, New Delhi – 110075
- Branch Locator: https://www.pnbindia.in/branch-locator.html
Digital Tools: PNB One app (Android/iOS) for mobile banking; net banking at netpnb.com.
Useful Customer Tips: Use PNB Rewardz for loyalty points on transactions. Q3 FY25 business grew 14.3% YoY. Great for NRIs with a global presence in 5 countries.
3. Bank of Baroda (BoB): Global Reach with Local Roots
Founded in 1908 by Maharaja Sayajirao Gaekwad III, BoB was nationalised in 1969. The 2019 three-way merger with Dena and Vijaya Banks made it the third-largest PSB. Known for international operations in 18 countries, BoB focuses on customer satisfaction and green financing.
Key Statistics: Market cap ₹1.26 lakh crore, assets ~₹25.64 lakh crore, 9,693 branches, 10,033 ATMs.
Services Offered: Savings accounts (bob Advantage, Platinum), current accounts, FDs (Monthly Income Plan, up to 7.25%), loans (home 7.45% p.a., car 8.4%, education 7.1%), digital loans for retail/MSME, and schemes like Capital Gain Account for tax savings.
Contact Details:
- Website: https://www.bankofbaroda.in/
- Helpline: 1800 258 4455
- Email: gm.ops@bankofbaroda.com
- Head Office: Baroda Corporate Centre, C-26, G-Block, Bandra Kurla Complex, Mumbai – 400051
- Branch Locator: https://www.bankofbaroda.in/locate-us/branch
Digital Tools: Bob World app (Android/iOS) for easy UI, payments, and internet banking.
Useful Customer Tips: Bob EaseMyTrip Debit Card for lounge access. Q4 FY25 global business up 11.74% YoY. Perfect for exporters with overseas branches.
4. Union Bank of India: Customer-Centric Innovation
Established in 1919 and inaugurated by Mahatma Gandhi, Union Bank was nationalised in 1969. The 2020 merger with Andhra and Corporation Banks elevated its status. It emphasises financial inclusion and digital banking, with 74,000+ employees.
Key Statistics: Market cap ₹1.09 lakh crore, assets ~₹21.65 lakh crore, 8,500 branches, 10,000+ ATMs.
Services Offered: Retail banking, corporate finance, savings (3%), FDs (7%), loans (personal 10.4%, home 8.35%), MSME schemes, and digital products like Union e-Passbook.
Contact Details:
- Website: https://www.unionbankofindia.co.in/
- Helpline: 1800 22 2244
- Email: customercare@unionbankofindia.bank
- Head Office: Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai – 400021
- Branch Locator: https://www.unionbankofindia.co.in/english/branch-locator.aspx
Digital Tools: Union Mobile app; net banking.
Useful Customer Tips: New Rupay debit cards for HNIs and women. Q3 FY25 net profit ₹2,910 crore. Suited for urban professionals.
5. Canara Bank: Legacy of Philanthropy and Growth
Founded in 1906 by Ammembal Subba Rao Pai, Canara Bank was nationalised in 1969. The 2020 merger with Syndicate Bank expanded its footprint. It’s renowned for MSME financing and rural banking.
Key Statistics: Market cap ₹1.03 lakh crore, assets ~₹15.2 lakh crore, 9,604 branches, 12,155 ATMs.
Services Offered: Savings, FDs (up to 7.25%), loans (home 8.4%, vehicle 8.7%, education 8.15%), government subsidy schemes, and digital hubs.
Contact Details:
- Website: https://canarabank.com/
- Helpline: 1800 103 0018
- Email: customercare@canarabank.com
- Head Office: 112, J C Road, Bengaluru – 560002
- Branch Locator: https://canarabank.com/Locator
Digital Tools: Canara AI app (Android/iOS); online banking with floating/fixed rates.
Useful Customer Tips: Vidya Lakshmi Portal for education loans. Strong in South India for local customers.
6. Indian Bank: Sustainable Growth and Digital Focus
Founded in 1907, Indian Bank merged with Allahabad Bank in 2020. It prioritises retail and corporate banking with a southern India focus.
Key Statistics: Market cap ₹0.85 lakh crore, assets ~₹8.08 lakh crore, 5,847 branches, 4,937 ATMs.
Services Offered: Loans, savings, credit cards, MSME lending, digital banking.
Contact Details:
- Website: https://www.indianbank.in/
- Helpline: 1800 425 0000
- Email: ibhocustomerservice@indianbank.co.in
- Head Office: 254-260, Avvai Shanmugam Salai, Royapettah, Chennai – 600014
- Branch Locator: https://www.indianbank.in/branch-locator/
Digital Tools: IndOASIS app; net banking.
Useful Customer Tips: Q3 FY25 net profit ₹2,910 crore, EPS up 26%. Good for sustainable investments.
7. Indian Overseas Bank (IOB): International Trade Specialist
Founded in 1937 by M. Ct. M. Chidambaram Chettyar, IOB focuses on forex and global banking. Nationalised in 1969, it has branches in Malaysia and Myanmar.
Key Statistics: Market cap ₹0.76 lakh crore, assets ~₹4.18 lakh crore, 3,222 branches, 3,495 ATMs.
Services Offered: Savings, current accounts, credit cards, MSME schemes, mutual funds, government schemes, and digital account opening.
Contact Details:
- Website: https://www.iob.in/
- Helpline: 1800 425 4445
- Email: customer@iobnet.co.in
- Head Office: 763, Anna Salai, Chennai – 600002
- Branch Locator: https://www.iob.in/branch-locator
Digital Tools: IOB Mobile app; digital banking portal.
Useful Customer Tips: Top in digital transactions among PSBs. Approved for a ₹10,000 crore fund raise in 2025. Ideal for importers/exporters.
8. Bank of India (BoI): Oldest with Modern Edge
Founded in 1906, BoI was nationalised in 1969. It boasts a history of supporting industrial development and now emphasises digital accessibility.
Key Statistics: Market cap ₹0.52 lakh crore, assets ~₹8 lakh crore, 5,100 branches.
Services Offered: Internet banking, mobile banking, pension services, SGB, share demat conversion.
Contact Details:
- Website: https://bankofindia.co.in/
- Helpline: 1800 220 229 (toll-free)
- Email: head.office@bankofindia.co.in
- Head Office: Star House, C-5, G Block, Bandra Kurla Complex, Mumbai – 400051
- Branch Locator: https://bankofindia.co.in/branch-locator
Digital Tools: BOI Mobile Omni Neo app (new version 2025); online banking at uaibconnect.bankofindia.co.in.
Useful Customer Tips: STQC certified for accessibility. Update KYC per RBI guidelines. Recent: Revised charges from Feb 2025.
9. Bank of Maharashtra: Focus on Inclusivity
Founded in 1935, nationalised in 1969, it’s known for low NPAs and rural focus.
Key Statistics: Market cap ₹0.43 lakh crore.
Services Offered: Retail, agriculture loans, deposits, and digital services.
Contact Details:
- Website: https://bankofmaharashtra.in/
- Helpline: 1800 233 4526
- Email: cmcustomerservice@mahabank.co.in
- Head Office: Lokmangal, 1501, Shivajinagar, Pune – 411005
- Branch Locator: https://bankofmaharashtra.in/branch-locator
Digital Tools: MahaMobile app; net banking.
Useful Customer Tips: Top performer in PSU stocks with high returns. Suited for Maharashtra residents.
10. UCO Bank: Honouring Trust Since 1943
Founded in 1943 by Ghanshyam Das Birla, UCO Bank is known for innovative digital products and rural outreach.
Key Statistics: Market cap ₹0.39 lakh crore, branches 3,086, ATMs 2,236.
Services Offered: Savings, loans, forex, and microfinance.
Contact Details:
- Website: https://www.ucobank.com/
- Helpline: 1800 103 0123
- Email: customercare.calcutta@ucobank.co.in
- Head Office: 10, BTM Sarani, Kolkata – 700001
- Branch Locator: https://www.ucobank.com/branch-locator
Digital Tools: UCO mBanking app; net banking.
Useful Customer Tips: Tagline “Honours Your Trust.” Approved for fundraising in 2025. Excellent for eastern India customers.
Why choose a government bank?
- Security and Trust: Government ownership means low risk of failure.
- Affordable Services: Lower loan rates (e.g., 7-9% for home loans vs. private’s 8-10%), higher FD returns for seniors.
- Financial Inclusion: Extensive rural branches, zero-fee accounts under PMJDY.
- Government Schemes Access: Direct benefits for subsidies, pensions.
- Digital Advancements: Apps like YONO, bob World for seamless UPI, bill pay.
How to Choose the Right Government Bank for You
Consider your needs: SBI for nationwide access, IOB for international trade, Canara for MSMEs. Check interest rates, branch proximity via locators, and app ratings. For loans, compare EMIs; for savings, look at CASA ratios. Always verify KYC and avoid scams—use official sites only.
Emerging Trends in Public Sector Banking 2025
PSBs are digitising rapidly: AI chatbots, blockchain for loans, green bonds for eco-projects. RBI’s push for fintech integration and reduced NPAs (average 3-5%) signals growth. Expect more mergers and IPOs for capital.
Banking Services Offered by Top 10 Government Banks in India
Personal Banking Services
Deposit Products:
- Savings Accounts: 2.50% – 4.00% p.a. interest rates
- Fixed Deposits: 3.00% – 7.30% p.a. across different tenures
- Recurring Deposits: Systematic savings with competitive returns
- Current Accounts: For business and professional use
Loan Products:
- Personal Loans: 10.30% – 15.30% p.a. interest rates
- Home Loans: Starting from 8.50% p.a. with flexible tenures
- Vehicle Loans: Car and two-wheeler financing
- Education Loans: Support for higher studies
Digital Banking Services
Government banks have significantly upgraded their digital infrastructure to compete with private sector banks:
Mobile Banking:
- Comprehensive Apps: Full banking on mobile devices
- UPI Integration: Seamless digital payments
- Bill Payments: Utility and credit card bill payments
- Fund Transfers: NEFT, RTGS, IMPS services
Internet Banking:
- 24×7 Access: Round-the-clock online banking
- Account Management: Balance inquiry, statements
- Investment Services: Mutual funds, insurance
- Loan Applications: Online loan processing
Business Banking Services
MSME Banking:
- Working Capital: Business operation funding
- Term Loans: Equipment and expansion financing
- Trade Finance: Import-export solutions
- Cash Management: Corporate banking solutions
Interest Rates and Charges (2025) of government banks in India
Deposit Rates Comparison
| Bank | Savings Account | 1-Year FD | 5-Year FD |
| SBI | 2.70% – 3.00% | 6.80% | 6.50% |
| PNB | 2.75% – 3.00% | 7.30% | 7.00% |
| Bank of Baroda | 2.75% – 3.00% | 6.75% | 6.25% |
| Indian Bank | 2.50% – 2.65% | 6.25% | 5.50% |
Rates are indicative and subject to change
Loan Interest Rates
Personal Loans: 10.30% – 15.30% p.a.
Home Loans: 8.50% – 11.00% p.a.
Vehicle Loans: 7.50% – 12.00% p.a.
Education Loans: 7.00% – 10.50% p.a.
Customer Protection and Grievance Redressal
DICGC Insurance Coverage
All government banks are covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance, protecting deposits up to ₹5 lakh per depositor per bank. This coverage includes:
- Savings Accounts: Full protection up to the limit
- Fixed Deposits: Principal and interest covered
- Current Accounts: Business account protection
- Recurring Deposits: Systematic deposit safety
Banking Ombudsman Scheme
The RBI Integrated Ombudsman Scheme 2021 provides free grievance redressal for banking disputes. Customers can file complaints:
Online: https://cms.rbi.org.in
Physical: Centralised Receipt Centre, Chandigarh
Coverage: All banking services and digital transactions
Complaint Process:
- First, approach the bank directly
- Wait 30 days for the bank response
- File with the Ombudsman if unsatisfied
- Free service with up to ₹10 lakh compensation
Recent Consolidation and Mergers
The Indian government has undertaken significant banking consolidation to create stronger, more efficient institutions:
Completed Mergers (2020):
- PNB: Merged with Oriental Bank and United Bank
- Union Bank: Absorbed Andhra Bank and Corporation Bank
- Canara Bank: Integrated Syndicate Bank
- Indian Bank: Combined with Allahabad Bank
Future Consolidation Plans:
Reports suggest a potential merger of four smaller PSU banks:
- UCO Bank
- Bank of Maharashtra
- Punjab & Sind Bank
- Central Bank of India
This consolidation aims to create larger, more competitive banks capable of supporting India’s growing economy.
Branch and ATM Locator Services
All government banks provide comprehensive branch and ATM locator services:
Online Locators:
- Bank Websites: Individual bank locator tools
- Mobile Apps: In-app branch finder
- NPCI Portal: Unified ATM locator
- Google Maps: Integrated location services
Search Options:
- By Location: City, state, PIN code
- By Services: Specific banking services
- By Distance: Nearest branch/ATM
- By Accessibility: Disability-friendly locations
FAQs on Top Government Banks in India
- Which is the No. 1 government bank in India? SBI, by market cap and assets.
- How many government banks are there in 2025? 12 PSBs.
- Are government banks safe? Yes, with DICGC insurance and government backing.
- What’s the best PSB for home loans? SBI or BoB, with rates starting at 7.45%.
- How to locate a branch? Use the bank’s official locator tool via their website.
Conclusion
India’s government banks continue to play a fundamental role in the country’s financial ecosystem, serving over 65 crore customers with their extensive network and comprehensive services. With strong government backing, DICGC insurance protection, and continuous digital transformation, these banks offer a reliable and secure banking experience.
The top 10 government banks profiled in this guide represent the backbone of Indian banking, combining traditional strengths with modern digital capabilities. Whether you’re looking for personal banking, business solutions, or investment services, these institutions provide a trusted financial partnership backed by a government guarantee.
As India continues its journey toward becoming a $5 trillion economy, government banks remain committed to financial inclusion, rural development, and digital innovation, ensuring that banking services reach every corner of the nation.
Sources
- https://www.forbesindia.com/article/explainers/public-sector-banks-in-india/89933/1
- https://cleartax.in/s/government-banks-in-india
- https://www.investkraft.com/blog/list-of-government-banks-2024
- https://www.bankbazaar.com/banks/public-sector-banks-in-india.html
- https://en.wikipedia.org/wiki/List_of_banks_in_India
- https://www.forbesindia.com/article/explainers/public-sector-banks-in-india/89933/1
- https://blog.shoonya.com/government-banks-in-india/
- https://lakshmishree.com/blog/government-banks-in-india/
- https://canarabank.com/
- https://www.bankofbaroda.in/
- https://bankofindia.co.in/
- https://www.iob.in/
All information is accurate as of August 2025 and subject to change. Please verify current rates and terms directly with the respective banks.
