Government banks play a crucial role in India's financial system. They serve as pillars of stability and support for the country's economy. Currently, there are 12 government banks operating in India. They offer various financial services, such as deposits, loans, and digital banking services, primarily aimed at driving financial inclusion and economic development.

In this article, you will get a comprehensive overview of government banks in India, including the current list of public sector banks (2025), largest government banks by market capitalisation, and important details.

What are the Government Banks in India?

In India, nationalised banks are public sector banks which are commonly known as government banks. A public sector bank in India refers to a bank in which the government owns at least 51% of its stakes. 

Largest Government Bank in India

The State Bank of India (SBI) is the largest government bank in India. Founded in 1806 as Bank of Calcutta, SBI currently has:

• Branches: Over 22,542
• ATMs: Over 65,000
• Business Correspondence Outlets: Over 85,000

It is also India's oldest commercial bank and the largest lender by market capitalization.

Government Banks in India: List of Public Sector Banks in India 2025

Currently, there are 12 nationalised banks in the country. Here is the list of government banks in India in 2025: 

• 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 public sector banks in India in terms of their market capitalisation:

*Data is as of 21 April 2025 sourced from BSE India 

Overview of the Top 10 Government Banks in India

Given below are the top government banks in India:

State Bank of India (SBI)

• Largest and oldest government bank in India.
• Offers diverse financial services, including retail banking, corporate lending, and digital banking.
• Extensive network with over 22,542 branches and 65,000+ ATMs.

Bank of Baroda (BOB)

• Known for its robust domestic and international presence.
• Provides retail and corporate banking solutions such as savings accounts, loans, and credit cards.
• Operates more than 9,693 branches and 10,033+ ATMs across India.

Punjab National Bank (PNB)

• One of the oldest banks, established initially in Lahore (now Pakistan).
• Specialises in retail banking, corporate banking, and wealth management services.
• Extensive reach with over 10,108 branches and 12,455 ATMs nationwide.

Indian Overseas Bank (IOB)

• Established to cater primarily to international trade and overseas banking needs.
• Offers services in retail banking, international trade solutions, MSME lending, and corporate finance.
• Known for its global banking initiatives and extensive domestic network.

Canara Bank

• Founded in 1906, headquartered in Bangalore.
• Specialises in MSME financing, agriculture, retail banking, and project finance.
• Operates through a network of over 9,604 branches and 12,155 ATMs.

Union Bank of India

• Offers a wide array of financial services including retail banking, corporate banking, and financial inclusion programs.
• Strong nationwide presence with over 8,500 branches and more than 10,000 ATMs.
• Noted for digital banking innovations and customer-centric solutions.

Indian Bank

• Established in 1907, known for comprehensive retail and corporate banking solutions.
• Provides various products including loans, savings accounts, credit cards, and digital banking services.
• Network consists of over 5,847 branches and 4,937 ATMs across India.

UCO Bank

• Founded in 1943 with a strong focus on financial inclusion and rural development.
• Offers microfinance, retail banking services, and corporate solutions.
• Operates over 4,000 branches with international presence in Hong Kong and Singapore.

Bank of India (BOI)

• Recognised for diverse banking products including personal banking, corporate finance, and MSME lending.
• Headquartered in Mumbai, operating more than 5,100 branches nationwide.
• Known for providing competitive loan schemes and digital banking services.

Central Bank of India

• Established in 1911, known for its extensive rural and semi-urban outreach.
• Specialises in agricultural lending, MSME financing, and government-sponsored schemes.
• Operates through a widespread network of more than 4,500 branches nationwide.

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 work under the supervision of RBI and SEBI, which are regulatory bodies. They adhere to strict regulations and rules to ensure the safety and transparency of the interest of the depositors.

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.

Public sector banks in India play a vital role in the country's financial system. It provides a wide spectrum of financial services to people to cater for their diverse service requirements. As India continues its journey towards becoming a global economic powerhouse, the role of government banks remains crucial. It ensures quick access to banking services and fosters inclusive growth for all segments of society.

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