This article provides a complete, up-to-date list of government banks in India (the 12 public sector banks or PSBs), explains the 2020 consolidations that reshaped the sector and helps you compare public sector banks with private banks on rates, speed and access to government schemes.
India currently has 12 government banks. That number matters whether you are choosing where to park savings, applying for a loan or trying to understand why the sarkari bank near you has a different name than it did a few years ago. These banks, commonly referred to as public sector banks (PSBs) or nationalised banks, are regulated by the Reserve Bank of India (RBI). The count fell from 27 in 2017 after a series of mergers, the last major round of which took effect in April 2020.
QUICK STAT
India’s 12 PSBs collectively held over 56% of total bank deposits and accounted for 57% of incremental credit in FY 2024-25. Source: Industry data / RegisterKaro, 2025
What Makes a Bank a Government Bank?
The simple test: if the Government of India owns more than 50% of a bank’s shares, it is a public sector bank. That majority stake gives the government control and a responsibility to serve public interest. PSBs follow RBI guidelines like any other bank, but they also run wide-reaching welfare-oriented schemes such as the PM Jan Dhan Yojana and Mudra Loans that purely profit-driven institutions may not prioritise.
The modern PSB landscape evolved through two major waves of nationalisation and later consolidation. The State Bank of India originated from the Imperial Bank of India in 1955 with RBI taking a controlling stake. In 1969, 14 major private banks were nationalised, and six more in 1980. For many years India had 27 PSBs; overlapping branch networks and capital constraints prompted consolidation after 2017, resulting in the current 12.
All 12 Government Banks in India
Below is the complete list of public sector banks in India as of 2026. Six of these are products of post-2017 mergers; the other six remain independent entities.
| # | Bank Name | Headquarters | Status | Key Strength |
|---|---|---|---|---|
| 1 | State Bank of India (SBI) | Mumbai, Maharashtra | Merged (absorbed 5 subsidiaries, 2017) | Largest PSB; 22,600+ branches, 53 crore customers, presence in 32 countries |
| 2 | Punjab National Bank (PNB) | New Delhi | Merged (absorbed OBC and United Bank, 2020) | Second largest PSB; strong rural network in North India |
| 3 | Bank of Baroda (BoB) | Vadodara, Gujarat | Merged (absorbed Vijaya Bank and Dena Bank, 2019) | Leading NRI banking PSB; broad international reach |
| 4 | Canara Bank | Bengaluru, Karnataka | Merged (absorbed Syndicate Bank, 2020) | Advanced digital services; extensive retail footprint |
| 5 | Union Bank of India | Mumbai, Maharashtra | Merged (absorbed Andhra Bank and Corporation Bank, 2020) | Strong presence in western and southern India |
| 6 | Indian Bank | Chennai, Tamil Nadu | Merged (absorbed Allahabad Bank, 2020) | Robust MSME and corporate banking in South India |
| 7 | Bank of India | Mumbai, Maharashtra | Independent | Presence in multiple international markets including Singapore |
| 8 | Central Bank of India | Mumbai, Maharashtra | Independent | One of India’s oldest nationalised banks |
| 9 | Indian Overseas Bank (IOB) | Chennai, Tamil Nadu | Independent | Focus on foreign exchange and overseas services |
| 10 | UCO Bank | Kolkata, West Bengal | Independent | Extensive branch network in eastern India; trade finance expertise |
| 11 | Bank of Maharashtra | Pune, Maharashtra | Independent | Reportedly among the lowest personal loan rates in the PSB segment |
| 12 | Punjab and Sind Bank | New Delhi | Independent | Smaller PSB with strong rural presence in North India |
DID YOU KNOW?
As of 2026 there are exactly 12 government banks in India. Six—SBI, PNB, Bank of Baroda, Canara Bank, Union Bank and Indian Bank—are merged entities. The other six operate as independent PSBs.
The 2020 Mergers: What Changed
Customers of Allahabad Bank, Oriental Bank of Commerce, Syndicate Bank, United Bank, Andhra Bank or Corporation Bank saw their local branch names change after these banks were absorbed by larger PSBs on 1 April 2020. Account balances and transaction history were migrated automatically. Account numbers changed in many cases, creating temporary confusion but no loss of funds.
| Banks Merged | Absorbed Into | Result |
|---|---|---|
| Oriental Bank of Commerce + United Bank of India | Punjab National Bank (PNB) | PNB became the second largest PSB |
| Syndicate Bank | Canara Bank | Canara Bank strengthened its retail network |
| Andhra Bank + Corporation Bank | Union Bank of India | Union Bank expanded its national footprint |
| Allahabad Bank | Indian Bank | Indian Bank significantly increased scale |
| Vijaya Bank + Dena Bank (2019) | Bank of Baroda | Bank of Baroda became a major consolidated PSB |
Each surviving PSB has carved out practical strengths: PNB is dominant across rural North India, Bank of Baroda is widely used by NRIs, Canara Bank has made major strides in digital banking, Indian Bank focuses on MSMEs in the south, and UCO Bank and Bank of Maharashtra have niche strengths in regional trade and competitive retail loan pricing respectively.
PRO TIP
If you are unsure whether your old branch still operates under the same name, call the branch number or search using your old account number on the acquiring bank’s website. Account history is preserved after mergers.
How Government Banks Compare to Private Banks
PSBs and private banks each have advantages depending on situation and customer needs.
Example 1: A salaried customer with a long-standing account at a PSB may qualify for lower personal loan rates and simpler documentation, making a PSB the better choice for cost-sensitive borrowers.
Example 2: A customer needing funds urgently may prefer a private bank or digital lender that offers pre-approved loans and same-day disbursal, even if the interest rate is slightly higher.
| Factor | Government Banks (PSBs) | Private Banks / NBFCs |
|---|---|---|
| Ownership | Government holds majority stake | Private shareholders |
| Branch reach | Extensive, strong in rural and semi-urban areas | Mostly urban and semi-urban |
| Personal loan rates (well-qualified borrower) | Often competitive if you hold a salary account; reported ranges vary | Pre-approved offers can start very low, but average rates are typically higher for general applicants |
| Loan approval speed | Generally 2–5 working days | Same day to 48 hours for many digital lenders |
| Access to government schemes | PSBs administer schemes like PMJDY, Mudra and KCC | Private banks typically do not provide these schemes |
| Deposit safety | DICGC cover up to ₹5 lakh with implicit sovereign backing | DICGC cover up to ₹5 lakh without sovereign backing |
| Digital banking | Rapidly improving; major PSB apps have large user bases | Often ahead on UX and design |
PRO TIP
If you have a salary account with a PSB, ask your branch about pre-approved personal loan offers before applying formally. Existing account relationships often yield better terms.
Do Government Banks Offer Better Interest Rates?
Rates vary by product and customer profile. For fixed deposits, PSBs often offer marginally better rates for senior citizens and certain tenures. For personal loans, holding a salary account with a PSB and having a strong credit score typically leads to more competitive rates at that bank. For home loans, both PSBs and private banks largely track RBI-linked benchmarks and offer comparable pricing. The advertised headline rate is rarely the final rate; your actual rate depends on credit score, income, employer and existing banking relationship.
QUICK STAT
As of mid-2026, reported PSB personal loan rates vary, with some PSBs advertising rates starting from the low single digits for specially priced offers for select customers and more typical ranges higher for general applicants. Source: Trade Brains / industry data, 2025-26
Government Schemes Administered by PSBs
PSBs administer several government welfare schemes that private banks do not. These include:
- PM Jan Dhan Yojana (PMJDY): Zero-balance savings accounts with basic debit access and insurance cover.
- Mudra Loans: Business loans up to ₹20 lakh for micro and small enterprises across three tiers (Shishu, Kishore, Tarun).
- Kisan Credit Card (KCC): Short-term agricultural credit at concessional rates for farmers.
- Stand-Up India: Loans to SC/ST borrowers and women entrepreneurs starting new ventures.
- PM Awas Yojana (PMAY): Subsidised housing support through credit-linked subsidies for eligible buyers.
These schemes are particularly important in extending formal credit to underserved segments and building credit history for first-time borrowers.
PSB Financial Performance: A Turnaround Story
Five years ago PSBs faced high non-performing assets and frequent recapitalisation. Since then, gross NPAs fell substantially and loan growth recovered. Gross NPAs were reported around 3.12% and net NPAs near 0.63% as of September 2024, while PSB loan portfolios expanded in FY 2024-25. Major PSBs have also expanded digital services and improved operational resilience.
QUICK STAT
PSB gross NPAs fell to ~3.12% and net NPAs to ~0.63% as of September 2024. Loan portfolio growth and improved asset quality were reported for FY 2024-25. Source: Industry data / RegisterKaro, 2024-25
How to Open an Account in a Government Bank
- Choose your account type: savings for individuals, current for businesses, or PMJDY for zero minimum balance where eligible.
- Apply online or visit a branch: most PSBs provide mobile apps and web-based account opening facilities.
- Complete KYC: typically Aadhaar, PAN and a passport-size photograph; some zero-balance PMJDY accounts accept Aadhaar alone.
- Activate the account: you may need a one-time branch visit for biometric verification; most accounts activate within 1–2 working days.
WATCH OUT
Minimum balance rules differ by bank and account type. Penalties apply for not meeting required minimums, so confirm requirements in advance or request a zero-balance account if you qualify.
Conclusion
Choosing between a government bank and a private bank depends on priorities: lower rates and scheme access favour PSBs for many customers, while speed and pre-approved digital offers often favour private banks. Compare interest rates, processing time and your existing banking relationship before deciding.
FAQs On Government Banks in India
How many government banks are there in India in 2026?
There are 12 government banks in India as of 2026. This number declined from 27 in 2017 following consolidations, with the last major round effective from 1 April 2020.
Which is the largest government bank in India?
State Bank of India (SBI) is the largest government bank by assets, branch network and customer base. As of early 2026 it remained the largest PSB by multiple measures.
What is the difference between a public sector bank and a private bank?
A public sector bank (PSB) has majority government ownership and often administers government welfare schemes and maintains a wider rural reach. Private banks are owned by private shareholders, generally provide faster digital services and may process loans more quickly. Both are regulated by the RBI and deposit insurance applies under the DICGC for eligible amounts.
Do government banks offer better interest rates than private banks?
It depends on the product and your relationship with the bank. PSBs may offer marginally better fixed deposit rates for senior citizens and competitive personal loan rates to existing salary account holders. Home loan pricing is largely comparable across PSBs and private banks since both track RBI-linked benchmarks.
Are government banks safer than private banks for deposits?
All banks are regulated by the RBI and deposits are insured by the DICGC up to ₹5 lakh. PSBs carry an implicit sovereign backing that private banks do not, but no major bank failure has occurred in recent decades across sectors.
Can I get a personal loan from a government bank with a low credit score?
PSBs typically expect a reasonable credit score for unsecured loans. Borrowers with lower scores may find options with NBFCs or fintech lenders that consider alternate data points such as income stability and repayment behaviour.
What happened to Allahabad Bank and Syndicate Bank?
Allahabad Bank merged into Indian Bank and Syndicate Bank merged into Canara Bank in April 2020. Account holders were migrated automatically and funds were preserved.
Which government bank is best for NRI banking?
Bank of Baroda has a strong reputation for NRI banking with products tailored to diaspora customers. SBI also maintains a significant overseas presence and a broad international network.