Government Banks in India: List of Public Sector Banks in India 2026

Government banks in India, also known as public sector banks (PSBs), are banks in which the Government of India holds a majority stake. The government bank list for 2026 comprises 12 public sector banks, including the State Bank of India and 11 nationalised banks, operating across retail, corporate, and rural banking segments.

Key Highlights

• A government bank is a public sector bank in which the Government of India holds at least a 51% stake.
• State Bank of India is the largest government bank in India by assets and market capitalisation.
• Government banks operate under the regulation of the Reserve Bank of India (RBI).
• Public sector banks play a major role in financial inclusion and government scheme implementation.

List of Public Sector Banks in India 2026

Currently, there are 12 public sector banks (PSBs) in India, comprising the State Bank of India (SBI) and 11 nationalised banks. Here is the latest government bank list:

• State Bank of India
• Bank of Baroda
• Punjab National Bank
• Bank of India
• Union Bank of India
• Canara Bank
• Bank of Maharashtra
• Central Bank of India
• Indian Overseas bank
• Indian Bank
• UCO Bank
• Punjab and Sind Bank

Top 10 Government Banks in India based on Market Capitalisation

Here are the top ten government bank list in India in terms of their market capitalisation:

Note: Market capitalisation changes daily based on stock market movements. The figures below are indicative and may vary over time.

Overview of the Top 10 Government Banks in India

Given below is the top 10 government bank list in India:

1. State Bank of India (SBI)

India’s largest government bank by market capitalisation and business volume. It offers retail, corporate, agricultural, and digital banking services with one of the widest branch and ATM networks in the country.

2. Bank of Baroda

A major public sector bank with strong domestic and international operations. It provides retail banking, corporate lending, MSME financing, and global banking services.

3. Punjab National Bank (PNB)

One of the oldest public sector banks in India. PNB offers retail, corporate, and priority sector lending services with a large nationwide presence.

4. Union Bank of India

Provides retail banking, corporate banking, treasury operations, and financial inclusion services. It has a strong nationwide branch network and expanding digital infrastructure.

5. Canara Bank

Established in 1906, Canara Bank specialises in MSME financing, agricultural lending, retail banking, and project finance across India.

6. Indian Bank

Offers retail and corporate banking solutions including loans, deposits, and digital banking services with a balanced urban and rural footprint.

7. Indian Overseas Bank

Initially focused on overseas trade finance, it now provides retail banking, MSME lending, and corporate financial services nationwide.

8. Bank of India

Headquartered in Mumbai, Bank of India provides personal banking, corporate finance, international banking, and digital services.

9. UCO Bank

Known for financial inclusion and rural outreach, UCO Bank offers retail banking, MSME lending, and limited international banking services.

10. Bank of Maharashtra

A government bank with strong regional presence and growing national footprint, offering retail, MSME, and agricultural banking services.

Features of Government Banks

1. Comprehensive Banking Services

Various financial products, such as savings accounts, fixed deposits, loans, credit cards, and insurance, are available for individuals and companies.

2. Facilitating Transactions

They provide services like forex, remittances, and money transfers, which help clients efficiently conduct their foreign and domestic financial dealings.

3. Protection of Deposits

Government banks stabilise and secure deposits as the custodians of public funds. Depositors are guaranteed that their deposits are safe in the bank.

4. Regulatory Compliance

They operate under the regulation of the Reserve Bank of India (RBI). Listed public sector banks also comply with the regulations of the Securities and Exchange Board of India (SEBI).

5. Strong Leadership and Risk Management

They follow strict corporate governance guidelines and risk management processes, are accountable even during economic downturns, and make decisions safeguarding the bank and its consumers.

Role of Government Banks in India’s Economy 

Government banks in India are crucial to the economic ecosystem by:

• Providing affordable credit to various sectors like agriculture, MSME, infrastructure, and retail.
• Driving financial inclusion and extending banking services in rural and semi-urban areas.
• Implementing government welfare schemes like PMJDY, Mudra Loan, PMAY, and more.
• Stabilizing the banking sector, ensuring trust and safety for depositors.

Government banks in India play a vital role in the country's financial system by providing banking services, supporting financial inclusion, and implementing various government welfare schemes. Whether you are looking for the latest government bank list or want to understand the role of a government bank, public sector banks continue to remain an integral part of India's banking sector and economic development.

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