In the fast-changing world of Indian markets, choosing the right bank is crucial for those who trade and invest. Why? Because the economy constantly evolves, so do the services offered by banks. We Indians still prioritise safety above all else and thus tend to favour government banks in India. However, it’s important to select the best bank for your financial needs, focusing on the one that provides the best rates, products, and services.
Best banks in India are not only ranked on the basis of their services but also on factors like the adoption of new technology and a wide range of services.
In this blog, we have curated a list of the top 10 government banks in India with detailed analyses of their service, product offerings,
Let us begin!
What are Government Banks
Government banks in India play a crucial role in the country’s financial sector, contributing significantly to economic development and financial inclusion. The roots of many of these banks trace back to the pre-independence era. Those were the times when these top government banks in India 2024 were established to meet the basic financial needs of the public.
8 Reasons Why Government Banks in India Stand Out as Stable and Reliable Choices
When people in India consider the most secure bank, they often choose government or public sector banks.
This preference is common for several reasons:
- Historical Significance:
Many government banks have a rich history that can be traced back to the colonial period. They were initially set up to address the people’s financial requirements and facilitate economic progress.
With such a strong history, people continue to prefer public sector banks over private banks in India.
Explore: Top Private Banks in India – 2024
- Establishment in the Early 20th Century:
In the early 1900s, a considerable number of these banks came into existence. These top government banks in India align with the increasing demand for financial services.
- Evolution and Expansion:
Over the years, these government banks have undergone significant transformations. Thus diversifying their services to encompass a broad spectrum of financial products.
These best government banks in India offer savings accounts, various types of loans, credit facilities, and investment options.
- Government Ownership:
The distinguishing factor of these banks is their ownership by the government. This not only implies financial stability but also acts as a cornerstone for the confidence of depositors. The share of government in these banks serves as the ultimate guarantor, instilling trust in the safety of deposits held.
- Regulatory Framework:
Government banks in India 2024 operate under stringent regulatory specifications set by the Reserve Bank of India. This regulatory oversight ensures the prudent management of these financial institutions and helps maintain the stability of the overall banking sector.
- Financial Products and Services:
These top 10 government banks in India contribute significantly, offering a range of services from basic banking, such as savings accounts, to more complex opportunities like investments.
7. Contribution to Economic Development:
Government banks play a pivotal role in driving economic development by channelling funds to various sectors.
They actively participate in government initiatives such as:
- Fostering economic growth
- Infrastructure development
- Financial inclusion.
8. Stability and Confidence:
The government’s ownership and regulatory oversight contribute to the stability of these banks. This stability instils confidence among depositors and investors alike.
List of Government Banks in India
There are 12 government banks in India in 2024:
- State Bank of India
- Canara Bank
- Indian Bank
- Union Bank of India
- Bank of India
- Punjab National Bank
- Bank of Baroda
- UCO Bank
- Central Bank of India
- Bank of Maharashtra
- Indian Overseas Bank
- Punjab and Sind Bank
These banks play a crucial role in the country’s banking and financial system.
But, out of these, which are the top 10 government banks in India?
Let us take a look!
| Bank | Established | Headquarters | Government Shareholding (in %) | Market Price of Each Share |
| State Bank of India | 1995 | Mumbai, Maharashtra | 56.92 | 521.75 |
| Canara Bank | 1911 | Mumbai, Maharashtra | 62.93 | 283.95 |
| Indian Bank | 1907 | Chennai, Tamil Nadu | 79.86 | 272.7 |
| Bank of Baroda | 1908 | Vadodara, Gujarat | 63.97 | 163.05 |
| Bank of India | 1906 | Mumbai, Maharashtra | 81.41 | 73.44 |
| Union Bank of India | 1919 | Mumbai, Maharashtra | 83.49 | 64.85 |
| Punjab National Bank | 1894 | New Delhi, NCT of Delhi | 73.15 | 47.82 |
| Punjab and Sind Bank | 1908 | New Delhi | 98.25 | 25.86 |
| Bank of Maharashtra | 1935 | Pune | 90.97 | 24.91 |
| UCO Bank | 1943 | Kolkata, West Bengal | 95.39 | 24.85 |
Source– Data.gov.in, listing top 10 government banks in India/ top 10 public sector banks in India 2024.
Top 10 Government Banks in India: An Overview
Here’s a brief overview of each of the best government banks in India, complete with their latest financial insights!
1. SBI
Year of Establishment: 1806 (as Bank of Calcutta), renamed as State Bank of India in 1955
SBI stands as one of the largest banks in India (public sector), holding the first position among the top 10 government banks in India. It commands a substantial market share, exceeding 20% in both deposits and loans.
As a Fortune 500 company, SBI boasts a rich heritage of over 200 years, earning the trust of generations of Indians.
Headquartered in Mumbai, SBI has a legacy of over 200 years, earning the trust of generations of Indians.
Key Highlights:
- Customer Base: Serves over 48 crore customers.
- Branch Network: More than 22,405 branches.
- ATMs/ADWMs: 65,627.
- Business Correspondents: 76,089 outlets.
Global Presence:
- International Offices: 235 offices in 29 foreign countries.
Subsidiaries:
- Insurance: SBI General Insurance, SBI Life Insurance.
- Investment: SBI Mutual Fund.
- Credit Cards: SBI Card.
Here are the highlights for FY2024 for the State Bank of India:
- Total Assets: ₹61,79,694 Crore, increased by 12.01%.
- Deposits: ₹49,16,077 Crore, increased by 11.13%.
- Advances: ₹37,67,535 Crore, increased by 15.24%.
- Fee Income: ₹28,126 Crore, increased by 7.17%.
- Market Share in Debit Card Spends 25.04%.
- Women in the SBI Workforce: 27%.
- Profit After Tax (PAT): ₹61,077 Crore.
2. Canara Bank
Year of Establishment: 1906
Founded in July 1906 by the visionary Shri Ammembal Subba Rao Pai, Canara Bank is one of the top government banks in India, ranking second on the list.
Canara Bank is a the second largest public sector bank in India.
Key Highlights (March 2024 vs. March 2023):
- Global Business: ₹22,72,968 crore, grew by 11.31%.
- Gross Advances: ₹9,60,602 crore, grew by 11.34%.
- Global Deposits: ₹13,12,366 crore, grew by 11.29%.
- Net-Interest Income: Grew by 11.18%.
- Net Profit: ₹3,757 crore, grew by 18.33%.
- Return on Assets: 1.01%, improved by 20 basis points.
Branch Network and Other Touchpoints (as of 31st March 2024):
- Total Branches: 9,604
- Rural: 3,103
- Semi-Urban: 2,751
- Urban: 1,907
- Metro: 1,843
- ATMs: 10,209
- International Branches: 4 (London, New York, Dubai, and GIFT City, Gujarat)
3. Indian Bank
Year of Establishment: 1907
It is one of the best government banks in India.
Indian Bank was incorporated with an authorised capital of ₹20 lakhs and commenced its business on August 15, 1907. The bank’s emblem featured a Banyan tree, symbolising progress, growth, and prosperity.
Currently, it ranks as the 3rd largest public sector bank in India.
Key Highlights (as of 31st March 2024):
- Global Business: Surpassed ₹12 lakh crore.
- Branch Network:
- Domestic branches: 5,847 (including 3 DBUs).
- Overseas branches: 3.
- International Banking Unit (IBU): 1.
- ATMs & BNAs: 4,937.
- Business Correspondents: 11,297.
Performance:
- Total Deposits: Increased by 11% YoY to ₹6.88 lakh crore.
- CASA Deposit Growth: 8%.
- Savings Deposit Growth: 7%.
- Current Deposit Growth: 9%.
- Domestic CASA Ratio: 42.31%.
- Gross Advances: Increased by 13% YoY to ₹5.34 lakh crore from ₹4.74 lakh crore in Mar’23.
4. BOB- Bank of Baroda
Year of Establishment: 1908
Bank of Baroda (BOB) is an Indian government-owned bank with its main office in Vadodara, Gujarat. It holds the 4th position among the top 10 government banks in India.
Established by Maharaja Sayajirao Gaekwad III on July 20, 1908, the bank today holds the 4th position among the top 10 government banks in India.
It was nationalised on July 19, 1969, along with 13 other commercial banks in India.
Key Offerings:
- Home Loan Interest Rate: 8.40% P.A.*
- Car Loan Interest Rate: 8.85% P.A.*
- Education Loan Interest Rate: 8.15% P.A.*
- Personal Loan Interest Rate: 10.80% P.A.*
5. Bank of India
Year of Establishment: 1906
Bank of India was established on 7th September 1906 by a group of prominent businessmen from Mumbai.
The bank remained under private ownership and control until July 1969, when it, along with 13 other banks, was nationalized.
It has a network of over 5,100 branches across all states and union territories, including specialised branches.
Ranked fifth among the top government banks in India, this bank went public with its maiden issue in 1997. It also conducted a Qualified Institutions Placement in February 2008.
Key Highlights:
- BOI is the first nationalised bank to establish a fully computerised branch and ATM at Mahalaxmi Branch, Mumbai, in 1989.
- SWIFT: Founder Member of SWIFT in India.
- Overseas Presence: 47 branches/offices in 15 foreign countries across 5 continents, including 4 subsidiaries, 1 representative office, and 1 joint venture.
- Key locations include Tokyo, Singapore, Hong Kong, London, Paris, New York, DIFC Dubai, and IBU at GIFT City Gandhinagar.
6. Union Bank of India
Year of Establishment: 1919
Union Bank of India, headquartered in Mumbai, is a leading public sector bank in India.
Established on November 11, 1919, as a limited company, it stands on 6th rank among top 10 government banks in India.
It expanded significantly with the amalgamation of Andhra Bank and Corporation Bank on April 1, 2020.
Key Highlights as of March 2024
- Over 8,400 domestic branches, 8,900+ ATMs, 75,800+ employees, and 18,900+ BC Points.
- Total Business (as of 31st December 2023): ₹20,68,429 crore.
- Deposits: ₹11,72,455 crore.
- Advances: ₹8,95,974 crore.
- Overseas Presence: 2 branches (Dubai, UAE & Sydney, Australia), 1 banking subsidiary (London, UK), 1 banking joint venture (Malaysia).
- Domestic Subsidiaries: 4 para-banking subsidiaries, 2 joint ventures, 1 associate (Chaitanya Godavari Gramin Bank).
- First largest bank in India (public sector) to implement a 100% core banking solution.
7. PNB- Punjab National Bank
Year of Establishment: 1894
Punjab National Bank (PNB) is a government-owned bank in India, and its main office is in New Delhi.
It was founded on May 19, 1894, at the instance of Rai Mool Raj and Lala Lajpat Rai.
Lala Harkrishan Lal, inspired by his ideas on commerce and industry, helped shape the bank’s practical approach. The founding board included members from diverse regions and faiths, united by the goal of creating a truly national bank.
Key Highlights (Q4 FY’24 vs. Q4 FY’23):
- Net Profit increased by 159.8% Y-o-Y and 35.4% Q-o-Q to ₹3,010 crore.
- Operating Profit increased by 9.4% Y-o-Y to ₹6,416 crore.
- Total Retail Credit increased by 12.6% to ₹2,22,574 crore in March 2024.
- The number of Digital Transactions increased to 659 crore during FY’24.
PNB has introduced various new initiatives, such as Digital Transformation, the issuance of Rupay Credit Card through the BHIM PNB App, cash withdrawal using UPI, etc.
8. Punjab & Sind Bank
Year of Establishment: 1908
Punjab & Sind Bank was founded with the vision of leaders like Bhai Vir Singh, Sir Sunder Singh Majitha, and Sardar Tarlochan Singh.
One of the leading government banks in India, it focuses on helping the weaker sections of society to improve their standard of living.
Key Highlights (FY’24 vs. FY’23):
- Total Business: ₹205,374 crore.
- Deposits: ₹119,410 crore.
- Gross NPA: 5.43%.
- Operating Profit: ₹336 crore.
- Net Profit: ₹139 crore.
9. Bank of Maharashtra
Year of Establishment: 1935
Bank of Maharashtra is a prominent government bank in India.
With a rich heritage, it stands as one of the earliest financial institutions in Maharashtra and plays a crucial role in the region’s economic development.
Financial Results for the Quarter and Year Ended 31st March 2024:
- Total Business grew by 15.94% to ₹474,411 crore.
- Total Deposits increased by 15.66% to ₹270,747 crore.
- Gross Advances increased by 16.30% to ₹203,664 crore.
- Credit-Deposit (CD) Ratio improved to 75.22%.
- Gross NPA declined to 1.88% as of 31.03.2024.
10. UCO Bank
Year of Establishment: 1943
UCO Bank is one of the oldest and most trusted government bank in India. It was founded in 1943 in Kolkata by eminent businessmen and visionaries.
UCO Bank offers its customers multiple financial and banking services, such as personal, corporate, rural, MSME, digital, and international banking.
When deciding whether to open an account with a public sector (government) or private sector bank in India, it’s essential to weigh the advantages and disadvantages of each.
Pros of Government Banks
Here are some benefits of choosing public sector banks:
- Public sector banks are seen as safe because the government supports and manages them.
- They often have a lower minimum balance requirements compared to private banks.
- Their long-standing presence and established reputation contribute to public trust.
Cons of Government Banks
However, you may face certain challenges:
- Government banks in India are often considered slower in adopting the latest technology than private banks.
- They are known to offer fewer schemes, especially digital solutions.
- People often perceive government banks as less customer-friendly.
Why Does Your Choice of Bank Matter?
In a country where economic growth is tied to technological progress, your government bank choice can either push you forward or hinder your progress.
The banking industry has undergone a substantial digital transformation.
These top government banks in India are not just financially strong but also utilise advanced technology to improve customer service. We hope our list of the best government banks in India serves as a purposeful guide for you.
FAQs| Top Banks in India
RBI (Reserve Bank of India) handles the working of banks in India. The State Bank of India- SBI, Punjab National Bank, HDFC Bank, and ICICI Bank are widely recognised for their robustness and stringent safety protocols.
SBI is a public sector bank with a vast branch network, lower minimum balance requirements, and higher deposit interest rates. In contrast, HDFC Bank is a private sector bank known for excellent customer service, advanced technology, and lower interest rates on loans. You can choose based on whether you prefer a public or private bank.
A public sector bank is a financial institution owned and operated by the government. It focuses mainly on the weaker sections of society.
As of 2024, there are 12 government banks in India.
The State Bank of India (SBI) is the largest public sector bank in India.
Source- https://financialservices.gov.in/beta/en/public-sector-banks
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.