Top 10 Government Banks in India 2026: A Comprehensive Guide

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Finance

Government banks, also known as Public Sector Banks (PSBs), form the backbone of India’s banking system. With their massive branch networks, digital services, and active role in implementing government schemes, PSBs continue to dominate India’s financial sector.

In this article, we present a list of the top government banks in India in 2026, their details, and the latest updates.

What is a Government Bank?

Before we look at the list, let us understand some important points about the government bank:

A Government Bank (Public Sector Bank) is one where the Government of India holds a majority stake (51% or above).
They offer a full range of banking services like savings/current accounts, fixed deposits, loans, credit cards, digital banking, corporate and retail banking.
PSBs help in implementing government schemes like Jan Dhan Yojana, Mudra Loans, PM-Kisan, MSME lending, and other financial programs.
They have extensive nationwide branch networks, reaching both urban metros and rural India.

List of Top 10 Government Banks in India in 2025

The following is the list of top government banks in India in 2026:

Bank	Approx. Scale (Deposits / Assets)	Headquarters	Strengths	Customer Support Number (Customer Care Number)
State Bank of India (SBI)	India’s largest bank; deposits above ₹50 lakh crore, assets over ₹75 lakh crore	Mumbai	Global presence, massive digital adoption (YONO), widest branch/ATM network, leader in retail & corporate banking.	1800 11 2211
Punjab National Bank (PNB)	Deposits over ₹13 lakh crore	New Delhi	Strong presence across India, wide rural reach, government-backed schemes, MSME & retail lending.	1800 1800
Bank of Baroda (BoB)	Deposits over ₹12 lakh crore	Vadodara, Gujarat	Strong international presence, retail and corporate banking, early adopter of digital services.	1800 5700
Canara Bank	Deposits around ₹11 lakh crore	Bengaluru	Merged with Syndicate Bank; strong MSME lending, digital services, customer-centric model.	1800 1030
Union Bank of India	Deposits approx. ₹10 lakh crore	Mumbai	Wide network, retail loans, technology upgrades, merged with Andhra Bank & Corporation Bank.	1800 208 2244
Bank of India (BoI)	Deposits over ₹7 lakh crore	Mumbai	International branches, strong rural and semi-urban focus, reliable government schemes execution.	1800 103 1906
Indian Bank	Deposits around ₹6.5 lakh crore	Chennai	Retail and agri-loans, strong presence in southern India, merged with Allahabad Bank.	1800 1700
Central Bank of India	Deposits over ₹5 lakh crore	Mumbai	One of the oldest PSBs, strong financial inclusion role, rural branches.	1800 3030
UCO Bank	Deposits around ₹3.5 lakh crore	Kolkata	Focus on government-backed schemes, corporate and priority sector lending.	1800 8910
Bank of Maharashtra	Deposits around ₹4 lakh crore	Pune	Leading PSB in Maharashtra, fast-growing in retail and MSME segment.	1800 233 4526
Indian Overseas Bank (IOB)	Deposits approx. ₹3.5 lakh crore	Chennai	Good presence in southern India, overseas branches, and digital services for NRIs.	1800 425 4445
Punjab & Sind Bank	Deposits approx. ₹1 lakh crore	New Delhi	Smaller PSB, but focused on the Punjab region, community banking, and government schemes.	1800 419 8300

Key Updates in 2025-2026 for Government Banks

The following are some of the key updates for government banks in 2025-2026:

Privatisation plans slowed down: The Government has retained its majority stake in all large PSBs for stability.
Digital banking push: SBI, BoB, PNB, and Canara have expanded UPI, mobile apps, and AI-driven customer services.
Bad loan (NPA) clean-up: Strengthening of balance sheets through government capital infusion and better recovery mechanisms.
Financial inclusion: PSBs remain the primary driver of schemes like Jan Dhan, Mudra, PM-Kisan, and MSME loans.
Green financing initiatives: Many PSBs now fund renewable energy, EVs, and sustainable projects.

Difference Between Government Banks, Private Banks, and Co-operative Banks

Now, let us understand the differences between government banks, private banks and Co-operative banks from the table below:

Feature	Government Banks (PSBs)	Private Banks	Co-operative Banks
Ownership	Majority govt stake (51%+)	Private shareholders	Members/depositors
Scale	Very large (nationwide)	Large, urban-focused	Local/regional
Target Audience	All segments, strong rural & semi-urban	Middle-class, corporates, urban	Local communities, SMEs, farmers
Digital Services	Very strong in top PSBs	Advanced, cutting-edge	Varies by bank
Risk Perception	Low (government-backed)	Moderate (market-driven)	Varies widely

Benefits of Banking with Government Banks

The following are the benefits of banking with government banks:

Trust and Safety: Government-backed, deposits insured up to ₹5 lakh.
Wide Reach: Branches in rural, semi-urban, and metro areas.
Affordable Rates: Competitive loan and deposit rates, especially for priority sectors.
Government Schemes: Direct benefit transfers, subsidies, and rural development programs.
Diverse Services: Retail, MSME, agriculture, and corporate banking.

Challenges and Risks in Government Banks

The following are some of the challenges and risks when you bank with government banks:

Service Quality: Sometimes slower compared to private banks.
Technology Gaps: Although improving, private banks often lead in tech innovation.
Employee-Driven Bureaucracy: Can lead to less flexibility and slower decisions.

Conclusion

Government banks are the foundation of India’s banking sector. In 2026, leaders like SBI, PNB, BoB, and Canara Bank continue to dominate in deposits, loans, and digital adoption. They play a critical role in financial inclusion, rural development, MSME lending, and implementing government schemes. For customers who value trust, safety, and a wide reach, government banks remain the most reliable choice.

Frequently Asked Questions

How many government banks are there in India in 2025?

As of 2026, there are 12 Public Sector Banks (PSBs) after multiple mergers in recent years.

Which is the largest government bank in India?

The State Bank of India (SBI) is the largest PSB with over ₹75 lakh crore in assets and the widest global presence.

Are deposits in government banks safe?

Yes. Deposits are insured by DICGC up to ₹5 lakh, and PSBs are considered the safest banks as they are government-owned.

Do government banks offer digital banking services?

Yes. Leading PSBs like SBI, BoB, PNB, and Canara Bank provide advanced digital platforms, UPI, net banking, mobile apps, and AI-based services.

What is the difference between public sector banks and private banks?

Public sector banks are government-owned with a wide rural focus, while private banks are shareholder-owned, more urban-focused, and faster in service delivery.

Which government bank is best for rural customers?

Banks like PNB, Canara Bank, and Bank of India have strong rural and semi-urban branch networks, making them ideal for rural customers.

Author: Diwakar Kumar Singh

Diwakar Kumar Singh is an accomplished content creator with over 6 years of experience in crafting both long-form and short-form content.

A gold medalist in MBA (Marketing) from IMT and a qualified petroleum engineer, Diwakar brings a results-driven mindset to his work. His passion for writing enables him to produce compelling and engaging content that resonates with diverse audiences.