Best Bank in India: Discover the Top 10 Government Banks with the Best Interest Rates

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In the fast-changing world of Indian markets, picking the right bank is important for people who trade and invest. Why? Because the economy keeps changing, so do the services that banks offer. It is important to choose the best bank for your financial needs, aiming at the one that offers the best rates, products and services. 

Best banks in India are not only ranked on the basis of their services but also factors like the adoption of new technology and a wide range of services. In this blog, we have designed a list of the best banks in India with detailed analyses of their service, product offerings, and their overall performance review to help you decide the most secure bank for your financial needs.

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 when they 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

  1. 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 financial requirements of the people and facilitate economic progress.
  2. Establishment in the Early 20th Century:
    • A considerable number of these banks were founded in the early 1900s, aligning with the increasing demand for financial services in a developing India.
  3. Evolution and Expansion:
    • Over the years, these banks have undergone significant transformations, diversifying their services to encompass a broad spectrum of financial products. This includes savings accounts, various types of loans, credit facilities, and investment options.
  4. 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 government serves as the ultimate guarantor, instilling trust in the safety of deposits held in these banks.
  5. Regulatory Framework:
    • Government banks operate under stringent regulatory guidelines set by the Reserve Bank of India (RBI) and other relevant regulatory bodies. This regulatory oversight ensures the prudent management of these financial institutions and helps maintain the stability of the overall banking sector.
  6. Financial Products and Services:
    • From basic banking services like savings accounts to more complex offerings such as investment opportunities, they contribute significantly to the financial well-being of individuals and businesses.
  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 aimed at fostering economic growth, infrastructure development, and financial inclusion.
  8. Stability and Confidence:
    • The government’s ownership and regulatory oversight contribute to the stability of these banks. This stability, coupled with the government’s commitment to ensuring the safety of deposits, instils confidence among depositors and investors alike.

Government Banks in India

  1. State Bank of India
  2. Canara Bank
  3. Indian Bank
  4. Union Bank of India
  5. Bank of India
  6. Punjab National Bank
  7. Bank of Baroda
  8. UCO Bank
  9. Central Bank of India
  10. Bank of Maharashtra
  11. Indian Overseas Bank
  12. Punjab and Sind Bank

These banks are among the largest government banks in India, playing a crucial role in the country’s banking and financial system.

List of Top 10 Government Banks in India
List of Top 10 Government Banks in India
BankEstablishedHeadquartersGovernment Shareholding (in %)
State Bank of India- SBI1955Mumbai, Maharashtra56.92 %
Bank of Baroda1908Vadodara, Gujarat63.97 %
Punjab National Bank- PNB1894New Delhi, NCT of Delhi73.15 %
Union Bank of India1919Mumbai, Maharashtra83.49 %
Canara Bank1906Bengaluru, Karnataka62.93 %
Indian Bank1907Chennai, Tamil Nadu79.86 %
Central Bank of India1911Mumbai, Maharashtra93.08 %
Indian Overseas Bank1937Chennai, Tamil Nadu96.38 %
UCO Bank1943Kolkata, West Bengal95.39 %
Bank of India1906Mumbai, Maharashtra81.41 %

As per the latest data shared by on- 21/09/2023.

Overview: Top 10 Government Banks in India


SBI stands as one of the largest public sector banks in India, holding the top position among the country’s top 10 banks. 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.

Extensive Network

Operates through 22,405 branches.

Boasts 65,627 ATMs/ADWMs and 76,089 BC outlets.

Serves over 48 crore customers.

Core Values

Emphasizes Service, Transparency, Ethics, Politeness, and Sustainability.

Global Presence

Operates in 29 foreign countries through 235 offices.

Extends services across different time zones.

Diversification and Subsidiaries

Successfully diversified businesses through subsidiaries like SBI General Insurance, SBI Life Insurance, SBI Mutual Fund, SBI Card, etc.

SBI’s Distribution and Market Presence as of March 2023:

  • Total Branches: SBI operates a network of 22,405 branches.
  • ATMs and ADWMs: The bank provides access to a vast network of 65,627 ATMs and ADWMs.
  • Customer Service Points (CSPs): SBI extends its services through 76,089 CSPs.
  • Market Share of Deposits: SBI holds a significant market share in deposits, capturing 22.99%.
  • Market Share of Advances: The bank commands a substantial market share in advances, accounting for 19.68%.
  • Market Share of ATMs: SBI is a major player in the ATM space, holding a market share of 29.90%.

Profitability Highlights for SBI in FY23:

  • Net Profit: The net profit for FY23 exceeded ₹50,000 crores, reaching ₹50,232 crores, showing a substantial growth of 58.58% YoY. In Q4FY23 alone, the net profit surged by 83.18% to ₹16,695 crores.
  • Operating Profit: The operating profit for FY23 saw a YoY growth of 11.18% to ₹83,713 crores. Q4FY23 recorded a YoY growth of 24.87%, reaching ₹24,621 crores.

BOB- Bank of Baroda

Bank of Baroda (BOB) is an Indian government-owned bank with its main office in Vadodara, Gujarat. It holds the second position among the top 10 government banks in India and is the largest public sector bank in the country, following the State Bank of India. BOB serves a vast customer base of 153 million, conducts a total business of US$218 billion, and maintains a global presence with 100 overseas offices. Established on 20th July 1908 by Sayajirao Gaekwad III, the bank has been a significant player in the banking sector for 115 years.

Key Information:

  • Headquarters: Vadodara, Gujarat, India
  • Number of Locations: 9,693 Branches, 10,033+ ATMs (as of March 2023)

PNB- Punjab National Bank

Punjab National Bank (PNB) is a government-owned bank in India with its main office in New Delhi. It was established in May 1894 and is currently the third-largest public sector bank in India based on its business activities. As of September 2023, PNB has earned an income of 9.58 trillion rupees.

  • By the end of September 2023, the bank has a total of 51,519 service points, including 10,092 branches within India, 2 international branches, 12,645 ATMs, and 28,782 Business Correspondents. 
  • PNB holds a significant position as a Public Sector Bank (PSB) in the country, with a Global Gross Business of ₹22,51,631 Crore. 
  • The bank is particularly strong in attracting low-cost CASA deposits, constituting 42.15% of its share (as of September 2023).

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, UPI International on the BHIM PNB App, and Integrated Payments and Collection Services tailored for Corporate and Institutional Customers.  

Union Bank of India

Union Bank of India is a public sector bank that was established in 1919 in Mumbai. It is one of the largest government-owned banks in India, with a network of over 8500 branches and 10,000 ATMs across the country. 

The bank offers multiple banking and financial services to its customers, such as personal, corporate, rural, SME, digital, and international banking. 

  • Domestic Branches: 8,500+
  • ATMs: 10,000+
  • Employees: 76,700+
  • Business Correspondent (BC) Points: 18,000+
  • Total Business (as of September 30, 2023): Rs. 1,984,842 crore
  • Deposits: Rs. 11,37,628 crore
  • Advances: Rs. 8,47,214 crore
  • Revenue (2023 TTM): $12.4 billion
  • Net Income (2023 TTM): $100 million

Indian Overseas Bank 

Indian Overseas Bank is a public sector bank that was founded in 1937 in Chennai. It is the first bank in India to venture into overseas banking, with branches in Singapore, Hong Kong, Colombo, Seoul, and Bangkok. 

The bank also has a focus on digital banking, with its own mobile app, internet banking, and UPI platform. The bank’s mission is to provide customer-centric banking with excellence.

  • The bank operates a widespread ATM network consisting of 1,151 ATMs and 2,331 Cash Recyclers (CRs) across the nation (As of 2 June 2023). This extensive network ensures that customers are conveniently located near an ATM or CR for their banking needs. 
  • The bank’s ATMs and CRs accept all major debit/ATM cards issued by members of NFS, as well as those from Visa, MasterCard, Discover, JCB, and UnionPay.

Canara Bank

Founded in July 1906 by the visionary and philanthropist Shri Ammembal Subba Rao Pai, Canara Bank has earned acclaim for its customer-centric approach. 

  • Launch of Inter-City ATM Network
  • Obtaining ISO Certification for a branch
  • Introduction of “Good Banking” through Banks Citizen Charter
  • Establishment of an Exclusive Mahila Banking Branch
  • Launching a subsidiary for IT Consultancy
  • Issuing credit cards specifically for farmers
  • Providing Agricultural Consultancy Services
  • Strengthening market position and evolving into a major Financial Conglomerate
  • Thirteen subsidiaries/sponsored institutions in India and abroad
  • Serving over 11.19 crore customers as of September 2023
  • Vast network with 9,518 branches and 12,118 ATMs/Recyclers across all Indian states and Union Territories.

Indian Bank

It is one of the best public sector banks in India. indian Bank received its charter on March 5, 1907, and officially commenced operations on August 15, 1907.

It was established in 1907 as part of the Swadeshi movement. 

Branch Network

  • Domestic Branches: 5,819 (Including 3 DBUs)
  • Overseas Branches: 3
  • IBU (International Banking Unit): 1
  • Total ATMs & BNAs: 4,866
  • Business Correspondents: 10,825

Performance Highlights as of September 30, 2023:

  • Total Business Growth: The bank recorded a year-on-year (YoY) growth of 10%, with total business reaching ₹1,13,3091 Crore in September 2023, compared to ₹1,02,6801 Crore in September 2022.
  • Advances Growth: Advances increased by 12% to ₹4,92,288 Crore in September 2023, up from ₹4,37,941 Crore a year ago. Notably, the Retail, Agriculture, and MSME sectors witnessed growth of 14%, 16%, and 5% YoY, respectively.
  • Deposit Growth: Deposits grew by 9% YoY, reaching ₹6,40,803 Crore in September 2023, compared to ₹5,88,860 Crore during the corresponding period a year ago.

UCO Bank

UCO Bank is one of the oldest and most trusted public sector banks in India. It was founded in 1943 in Kolkata by a group of eminent businessmen and visionaries. UCO Bank offers multiple financial and banking services to its customers, such as personal, corporate, rural, MSME, digital, and international banking.

Bank of India

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 underwent nationalization along with 13 other banks.

  • Branch Network:
    • The bank boasts a vast network of over 5,100 branches in India, covering all states and union territories.
    • Specialised branches are also part of this extensive network.
  • Organizational Structu₹re:
    • Branches are organised and managed through 69 Zonal Offices and 13 NBG (National Banking Group) Offices.
  • International Presence:
    • Bank of India has a global footprint with 45 branches/offices abroad.
      • This includes 23 own branches.
      • 1 representative office.
      • 4 subsidiaries with a total of 20 branches.
      • 1 joint venture.

Central Bank of India

Central Bank of India was established in 1911, making it the first Indian commercial bank wholly owned and managed by Indians.

  • Geographical Reach:
    • Central Bank of India is distinguished among Public Sector Banks as an All India Bank.
    • It has a widespread network covering all 28 States and 7 out of 8 Union Territories in India.
  • Branch Network:
    • The bank’s prominence is reflected in its extensive branch network:
      • 4,493 Branches
      • 1 Extension counter
      • 10 Satellite Offices (as of March 2023)

Why Does Your Choice of Bank Matter?

In a nation where economic growth intertwines with technological advancements, your banking choice can either move you forward or hold you back. The banking sector has undergone a digital revolution, and the best banks in India are not only financially robust but also embrace cutting-edge technology to enhance customer experience. We hope our list of best banks in India serves as a purposeful guide for you.


Which is the safest bank in India?

The Reserve Bank of India (RBI) regulates the working of banks in India. The State Bank of India- SBI, Punjab National Bank- PNB, HDFC Bank, and ICICI Bank are widely recognised for their robustness and stringent safety protocols.

Which bank is better, SBI or HDFC?

SBI and HDFC Bank, both leading banks in India, exhibit distinct strengths. SBI, a public sector bank, boasts a vast branch and ATM network, a lower minimum balance requirement, and higher interest rates on deposits. On the other hand, HDFC Bank, a private bank, excels in customer service, advanced technology, and lower interest rates on loans. Choosing between them depends on individual needs and preferences.


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