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Top 10 Government Banks in India 2026: PSU Bank List, Rankings, and Key Features
Author
Shoonya Team
We Indians still prioritise safety above all else and thus tend to favour top government banks in India. Several Sarkari banks offer reliable financial services. If you’re looking for the best government bank in India, it is important to see who provides the best rates, products, and 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, and more!
Government Banks in India
A government bank in India is one where the government owns more than 50% of its shares. These banks, also called public sector banks or Sarkari banks, focus on public welfare by making banking accessible to everyone.
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 were established to meet the basic financial needs of the public.
List of Government Banks in India – 2026
There are 12 government banks in India.
Here is the latest PSU bank list of 2026 based on the latest market capitalisation data:
| Bank | Market Capitalisation (₹ Cr.) |
|---|---|
| State Bank of India (SBI) | 9,54,722.75 |
| Union Bank of India | 1,32,443.09 |
| Bank of Baroda | 1,28,818.63 |
| Punjab National Bank (PNB) | 1,21,882.65 |
| Canara Bank | 1,15,378.68 |
| Indian Bank | 1,14,303.35 |
| Bank of India | 65,808.81 |
| Indian Overseas Bank (IOB) | 65,433.90 |
| Bank of Maharashtra | 62,724.66 |
| UCO Bank | 33,192.22 |
| Central Bank of India | 29,733.85 |
| Punjab & Sind Bank | 17,802.84 |
Note: This list of public sector banks in India reflects market capitalisation as of July 15, 2026.
But, out of these, which are the top 10 government banks in India?
Let us take a look!
Top 10 Public Sector Banks in India – 2026
Be it for savings, loans, or investments, the top 10 government banks in India offer it all.
Here is the government bank list that shows the top 10 public sector banks in India based on market cap in 2026.
Top 10 Government Bank Stocks in India: Establishment Year & Branch Network
Here is the list of the top 10 Sarkari Banks in India – 2026.
| Rank | Bank | Year Established | Approx. Domestic Branches |
|---|---|---|---|
| 1 | State Bank of India (SBI) | 1955 | 23,085+ |
| 2 | Union Bank of India | 1919 | 8,650+ |
| 3 | Bank of Baroda | 1908 | 8,648+ |
| 4 | Punjab National Bank | 1894 | 10,189+ |
| 5 | Canara Bank | 1906 | 9,861+ |
| 6 | Indian Bank | 1907 | 6,003+ |
| 7 | Bank of India | 1906 | 5,306+ |
| 8 | Indian Overseas Bank (IOB) | 1937 | 3,494+ |
| 9 | Bank of Maharashtra | 1935 | 2,641+ |
| 10 | UCO Bank | 1943 | 3,302+ |
Branch counts are approximate and may vary slightly as banks open, merge, or relocate branches. Figures are based on the latest publicly available information from the respective banks and government sources.
Top 10 Government Banks in India 2026: Market Cap, Branches and Key Metrics
Here’s a brief overview of each of the best government banks in India, complete with their latest financial insights!
1. State Bank of India (SBI)
State Bank of India is the largest government bank in India and the leading public sector bank, with a strong presence across the country and overseas.
- Market Capitalisation: ₹9,54,722.75 Cr.
- Branches: 23,085+ domestic branches.
- ATMs: 65,000+ ATMs and cash recyclers across India.
- Revenue / Financial Performance: Total income grew by around 11 to 13% in FY26, supported by strong business growth.
2. Union Bank of India
Union Bank of India is one of the top government banks in India and became one of the country’s largest PSU banks after merging with Andhra Bank and Corporation Bank.
- Market Capitalisation: ₹1,32,443.09 Cr.
- Branches: 8,650+ domestic branches.
- ATMs: 8,700+ ATMs nationwide.
- Revenue / Financial Performance: Total business crossed ₹23.85 lakh crore in FY26, driven by steady loan and deposit growth.
3. Bank of Baroda
Bank of Baroda is one of the best public sector banks in India, with a strong domestic and international presence.
- Market Capitalisation: ₹1,28,818.63 Cr.
- Branches: 8,648+ domestic branches.
- ATMs: 8,000+ ATMs and cash recyclers.
- Revenue / Financial Performance: Revenue remained strong, supported by higher digital banking usage through its bob World platform.
4. Punjab National Bank (PNB)
Punjab National Bank is one of the oldest government banks in India and has one of the largest branch networks in the country.
- Market Capitalisation: ₹1,21,882.65 Cr.
- Branches: 10,189+ branches.
- ATMs: 11,822+ ATMs.
- Revenue / Financial Performance: Better digital transactions and improved asset management supported revenue growth in FY26.
5. Canara Bank
Canara Bank ranks 5th among the top 10 government banks in India, known for its customer service and digital banking initiatives.
- Market Capitalisation: ₹1,15,378.68 Cr.
- Branches: 9,861+ branches.
- ATMs: 10,500+ ATMs across India.
- Revenue / Financial Performance: Growth in loans and advances helped improve its net interest income during FY26.
6. Indian Bank
Indian Bank is a well-established public sector bank in India with a strong presence across the country.
- Market Capitalisation: ₹1,14,303.35 Cr.
- Branches: 6,003+ branches.
- ATMs: 5,676+ ATMs and BNAs.
- Revenue / Financial Performance: Strong deposit growth supported the bank’s overall financial performance in FY26.
7. Bank of India (BOI)
Bank of India is another one of the oldest government banks in India, offering retail, corporate, and international banking services.
- Market Capitalisation: ₹65,808.81 Cr.
- Branches: 5,306+ branches.
- ATMs: 8,003+ ATMs.
- Revenue / Financial Performance: Stable asset quality and steady lending helped maintain healthy profits in FY26.
8. Indian Overseas Bank (IOB)
Indian Overseas Bank is a trusted PSU bank known for its focus on rural banking, agriculture, and international banking services.
- Market Capitalisation: ₹65,433.90 Cr.
- Branches: 3,494+ branches.
- ATMs: 3,651+ ATMs.
- Revenue / Financial Performance: Growth in rural lending and treasury operations supported its financial performance.
9. Bank of Maharashtra
Bank of Maharashtra ranks 9th among the top PSU banks in India, recognised for its strong financial performance and low NPAs.
- Market Capitalisation: ₹62,724.66 Cr.
- Branches: 2,641+ branches.
- ATMs: 2,300+ ATMs.
- Revenue / Financial Performance: Better operational efficiency helped improve its revenue and profitability in FY26.
10. UCO Bank
UCO Bank is another trusted government bank with a strong presence in eastern India and a growing focus on MSME banking.
- Market Capitalisation: ₹33,192.22 Cr.
- Branches: 3,302+ branches.
- ATMs: 2,400+ ATMs.
- Revenue / Financial Performance: Growth in non-interest income supported the bank’s overall financial performance.
The market capitalisation figures are based on publicly available data as of 15 July 2026 and may change with stock market movements.
Top 10 Government Bank Stocks in India (Based on CMP)
| Rank | Bank | CMP (₹) |
|---|---|---|
| 1 | State Bank of India (SBI) | 1,034.30 |
| 2 | Indian Bank | 848.60 |
| 3 | Bank of Baroda | 249.10 |
| 4 | Union Bank of India | 173.50 |
| 5 | Bank of India | 144.55 |
| 6 | Canara Bank | 127.20 |
| 7 | Punjab National Bank (PNB) | 106.05 |
| 8 | Bank of Maharashtra | 81.55 |
| 9 | Indian Overseas Bank (IOB) | 33.98 |
| 10 | Central Bank of India | 32.85 |
Various Types of Banks in India
Banks in India are divided into different categories based on their role in the financial system.
| Types of Banks | Working and Role |
|---|---|
| Central Bank | The Reserve Bank of India (RBI) acts as the country’s central bank and monetary authority. It regulates and supervises all other banks in India. |
| Commercial Banks | These provide banking services such as deposits, loans, payments, and other financial services to individuals and businesses. They include both public sector and private sector banks. |
| Cooperative Banks | These operate on a cooperative model, primarily at the state and district level. They cater to rural and agricultural sectors by offering affordable credit and easy banking access. |
| Regional Rural Banks (RRBs) | Established in 1975 to extend banking services to rural areas. These banks focus on lending to small farmers, artisans, and village-based enterprises. |
| Payments Banks | Designed to promote financial inclusion by offering basic banking services such as savings accounts and fund transfers, but without loan or credit facilities. |
Key Developments & PSU Bank Consolidation Timeline (1969–2026)
| Year / Period | Development | Details / Outcome |
|---|---|---|
| 1969 | First Wave of Nationalisation | The government nationalised 14 major private commercial banks to expand banking services and improve access to credit, especially in rural areas. |
| 1980 | Second Wave of Nationalisation | 6 more private banks were nationalised, increasing government control of the banking sector to over 90%. |
| 1993 | New Bank of India Merger | The New Bank of India merged with Punjab National Bank (PNB) due to severe financial distress. This was the first merger between two nationalised banks. |
| 2017 | State Bank of India Consolidation | 5 associate banks and Bharatiya Mahila Bank merged with State Bank of India (SBI), making SBI one of the world’s largest banks. |
| 2018 | Bank of Baroda Mega Merger | Vijaya Bank and Dena Bank merged with Bank of Baroda, marking the first major multi-bank consolidation in the modern PSU banking era. |
| April 2020 | Structural PSB Overhaul | The government consolidated 10 public sector banks into 4, reducing the number of public sector banks from 27 (before successive rounds of consolidation) to 12. |
| 2020 (Specifics) | PNB Expansion | Oriental Bank of Commerce and United Bank of India merged with Punjab National Bank (PNB). |
| 2020 (Specifics) | Union Bank Expansion | Andhra Bank and Corporation Bank merged with Union Bank of India. |
| 2020 (Specifics) | Canara Bank Expansion | Syndicate Bank merged with Canara Bank. |
| 2020 (Specifics) | Indian Bank Expansion | Allahabad Bank merged with Indian Bank. |
| November 2024 | RRB Amalgamation Proposal | The Ministry of Finance proposed the Phase-4 consolidation of Regional Rural Banks (RRBs) to improve operational efficiency and strengthen rural banking. |
| April 2025 | Phase-4 RRB Merger Executed | The Department of Financial Services (DFS) merged 26 RRBs, leaving 28 Regional Rural Banks operating across 26 states under the “One State, One RRB” framework. |
| March 2026 | IDBI Bank Privatisation Standoff | The proposed sale of the government’s and LIC’s combined 60.72% stake in IDBI Bank stalled after initial financial bids fell below the government’s reserve valuation. |
| July 2026 | Revised IDBI Bids & PSU Privatisation Update | DIPAM invited revised financial bids for IDBI Bank from shortlisted bidders, including Fairfax Financial Holdings and Emirates NBD. At the same time, the Ministry of Finance clarified in Parliament that there are no active plans to privatise the remaining 12 mainstream public sector banks. |
How to Choose the Right Government Bank in 2026
With every public sector bank now offering digital services, low-cost accounts, and online loans, the decision depends on what you value more. Is it accessibility, service, or technology?
What are the Pros of Government Banks
- Public sector banks are seen as safe because the government supports and manages them.
- They often have lower minimum balance requirements compared to private banks.
- Their long-standing presence and established reputation contribute to public trust.
What are the Cons of Government Banks
- 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.
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.
Also check out our list of the top 10 private banks in India 2026!
Top Public Banks in India- FAQs
Which is the largest government bank in India?
As of 15 July 2026, the largest government bank in India by market capitalisation is the State Bank of India (SBI), with a market cap of ₹9,54,722.75 crore.
Which is the No. 1 government bank in India?
The State Bank of India (SBI) ranks first among government banks in India based on market capitalisation as of 15 July 2026.
How many government banks are there in India?
As of 2026, there are 12 government-owned public sector banks (PSBs) in India.
What are the 12 government banks in India?
The 12 government banks in India are State Bank of India, Union Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Indian Bank, Bank of India, Indian Overseas Bank, Bank of Maharashtra, UCO Bank, Central Bank of India, and Punjab & Sind Bank.
Which are the top 5 government banks in India?
Based on market capitalisation as of 15 July 2026, the top five government banks in India are State Bank of India, Union Bank of India, Bank of Baroda, Punjab National Bank, and Canara Bank.
Which is the third-largest government bank in India?
As of 15 July 2026, Bank of Baroda is the third-largest government bank in India by market capitalisation.
Is SBI a 100% government-owned bank?
No. The Government of India holds a majority stake in SBI, while the remaining shares are publicly traded on the stock exchanges.
Is RBI a government bank?
No. The Reserve Bank of India (RBI) is India’s central bank and banking regulator. It is not a commercial public sector bank.
Which bank is better, SBI or HDFC Bank?
SBI offers an extensive branch network and government backing, while HDFC Bank is known for its digital banking services and customer experience. The better choice depends on your banking needs.
What are the 12 nationalised banks in India?
As of 2026, the 12 government-owned public sector banks in India are State Bank of India, Union Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Indian Bank, Bank of India, Indian Overseas Bank, Bank of Maharashtra, UCO Bank, Central Bank of India, and Punjab & Sind Bank.
Which 5 banks are privatised?
As of 2026, the Government of India has not privatised any of the 12 public sector banks. However, IDBI Bank is undergoing a strategic disinvestment process, with the government and LIC planning to sell their combined majority stake.
When were the 14 banks nationalised?
The Government of India nationalised 14 major commercial banks on 19 July 1969 to expand banking services across the country and improve access to credit.
Is RBI a public sector bank?
No. RBI is not a public sector bank. It is India’s central bank, while public sector banks are commercial banks in which the Government of India holds a majority stake.
Source: Screener.in
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