List of Government Banks in India: All 12 Nationalised Banks Explained 

This article covers the full list of government banks in India (all 12 nationalised banks and PSBs), explains the 2020 mergers that reshaped the sector and helps you compare public sector banks with private banks on rates, speed and scheme access. 

India has exactly 12 government banks right now. Not 15, not 20. Just 12. This matters whether you are trying to figure out where to park your savings, apply for a loan or simply understand why the sarkari bank near your house might carry a different name than it did five years ago.  These banks, formally called public sector banks or PSBs, are also widely called nationalised banks in India, even though technically not all 12 went through the same nationalisation process. The RBI regulates every one of them. Before diving into the list of government banks in India, here is the short answer to the most-searched question, how many government banks in India exist today: there are 12 government banks in India as of 2026. That count fell from 27 in 2017 after a series of mergers. The last big round happened in April 2020. 
 

QUICK STAT 

India’s 12 PSBs collectively held over 56% of total bank deposits and 57% of incremental credit in FY 2024-25.  
Source: Industry data / RegisterKaro, 2025

What Makes a Bank a Government Bank? 

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 but also a responsibility. These banks follow RBI guidelines like any other bank, but they also carry a mandate to serve public interest. That is why they run schemes like PM Jan Dhan Yojana and Mudra Loans, things a purely profit-driven institution would not bother with.  These nationalised banks in India were created through two waves of bank nationalisation. The story starts in 1955 when the Imperial Bank of India became the State Bank of India, with the RBI taking a 60% stake. In 1969, Indira Gandhi’s government nationalised 14 major private banks in one move. Six more followed in 1980. For decades, India had 27 PSBs. Too many, with overlapping branch networks and thin capital bases. The 2020 mergers cut that count down to 12. 

All 12 Government Banks in India 

This is the complete public sector banks list India as of 2026. Six are the product of post-2017 mergers. The remaining six continue as 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, 32 countries
2	Punjab National Bank (PNB)	New Delhi	Merged (absorbed OBC + United Bank, 2020)	2nd largest; 12,248+ branches; strong rural North India network
3	Bank of Baroda (BoB)	Vadodara, Gujarat	Merged (absorbed Vijaya + Dena Bank, 2019)	Top NRI banking PSB; 8,243+ branches
4	Canara Bank	Bengaluru, Karnataka	Merged (absorbed Syndicate Bank, 2020)	Most digitally advanced PSB; ‘Canara ai1’ super-app
5	Union Bank of India	Mumbai, Maharashtra	Merged (absorbed Andhra + Corporation Bank, 2020)	5,100+ branches; strong in western and southern India
6	Indian Bank	Chennai, Tamil Nadu	Merged (absorbed Allahabad Bank, 2020)	Strong MSME and corporate banking in South India
7	Bank of India	Mumbai, Maharashtra	Independent	Present in 5 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	Specialised in foreign exchange; 5 overseas markets
10	UCO Bank	Kolkata, West Bengal	Independent	9,609+ branches; strong trade finance in eastern India
11	Bank of Maharashtra	Pune, Maharashtra	Independent	Lowest reported personal loan rates in PSB segment (from 8.75%)
12	Punjab and Sind Bank	New Delhi	Independent	Smallest PSB; strong North India rural presence

DID YOU KNOW? 

How many government banks are there in India? As of 2026, the answer is 12. Six of these (SBI, PNB, BOB, Canara, Union Bank and Indian Bank) are merged entities. The other six (Bank of India, Central Bank, IOB, UCO Bank, Bank of Maharashtra and Punjab and Sind Bank) operate independently. 

The 2020 Mergers: What Actually Changed 

If you banked with Allahabad Bank, Oriental Bank of Commerce, Syndicate Bank, United Bank Andhra Bank or Corporation Bank, those branch names are gone. All were absorbed into larger PSBs on 1 April 2020. 

Banks Merged	Absorbed Into	Result
Oriental Bank of Commerce + United Bank of India	Punjab National Bank (PNB)	PNB became 2nd largest PSB
Syndicate Bank	Canara Bank	Canara became 4th largest PSB
Andhra Bank + Corporation Bank	Union Bank of India	Union Bank became 5th largest PSB
Allahabad Bank	Indian Bank	Indian Bank became 7th largest PSB
Vijaya Bank + Dena Bank (2019)	Bank of Baroda	BoB became 3rd largest PSB

For customers, the shift was mostly invisible. Funds, account history and fixed deposits transferred automatically. Account numbers changed, which caused temporary confusion, but no one lost money.  Each bank in today’s government bank list has its own niche. PNB dominates North India’s rural network. Bank of Baroda is the go-to for NRI banking with dedicated diaspora products. Canara Bank has moved farthest on digital banking among PSBs, with AI chatbots and 300+ services on its app. Indian Bank leads in South India MSME lending. UCO Bank punches above its weight in eastern India and trade finance. Bank of Maharashtra consistently offers the sharpest personal loan rates in the PSB segment. 

PRO TIP 

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. Your account history has been preserved. 

How Government Banks Compare to Private Banks? 

Two real situations that show when a PSB wins and when it does not.  Situation 1: Ramesh is 29, a software engineer in Hyderabad earning ₹65,000 a month. He needs ₹3 lakh for home renovation. His CIBIL score is 740 and his salary account is with SBI. SBI offers him a personal loan at 12.5% per annum. His EMI over 36 months works out to roughly ₹10,060. A private bank quotes 13.5%, putting his EMI at ₹10,224. That ₹164 monthly difference totals about ₹5,900 in extra interest. SBI also already has his KYC. No extra paperwork. The PSB wins.  Situation 2: Priya is 34, a marketing manager in Bengaluru earning ₹1.1 lakh a month. She needs ₹5 lakh urgently for a family medical emergency. Her salary account is with Canara Bank. Canara tells her it will take 3 working days to process. Meanwhile, ICICI Bank has a pre-approved offer waiting because she holds an ICICI credit card. ICICI disburses in 4 hours. She takes the ICICI loan because the speed matters more than the roughly ₹300 she might have saved in total interest. The private bank wins. 

Factor	Government Banks (PSBs)	Private Banks / NBFCs
Ownership	Government holds 50%+ stake	Private shareholders
Branch reach	Wide; strong in rural and semi-urban India	Mostly urban and semi-urban
Personal loan rates (750+ CIBIL, salary a/c)	From ~8.75 to 11% p.a.	From ~9.99% (pre-approved); typically 13 to 16% for average borrowers
Loan approval speed	2 to 5 working days typically	Same day to 48 hours for digital lenders
Government scheme access	PMJDY, Mudra, KCC, PMAY and more	Not applicable
Deposit safety	DICGC cover up to ₹5 lakh + implicit sovereign backing	DICGC cover up to ₹5 lakh; no sovereign backing
Digital banking quality	Improving; SBI YONO has 100M+ users	Generally ahead on UX and app design

PRO TIP 

Salary account holder at a PSB? Ask your branch for a pre-approved personal loan offer before filing a formal application. Banks can see your income inflows directly and often extend better rates to existing customers. You might be surprised. 

Do Government Banks Offer Better Interest Rates Than Private Banks? 

This question comes up often and the answer varies by product.  For fixed deposits: broadly yes for senior citizens and special tenures. As of mid-2026, Canara Bank and PNB both offer 7.10 to 7.50% for senior citizens on specific tenures. Many private banks match or come close, but PSBs have a slight edge here.  For personal loans: it depends on your relationship with the bank. If you are a salaried government employee or hold a salary account with a PSB, you will likely get a better rate at that PSB. Bank of Maharashtra reportedly leads with rates from 8.75% per annum. SBI starts around 10.00%. For borrowers without a salary account relationship, private banks can sometimes match or beat PSB rates for well-qualified applicants.  For home loans: both PSBs and private banks peg their rates to the RBI repo rate, which was cut by 125 basis points through 2025 to 5.25% as of early 2026. As a result, home loan rates across both types are largely comparable. Compare both before deciding.  Key point for loan seekers: the advertised rate is rarely the rate you get. Your actual rate depends on your CIBIL score, income, employer category and existing banking relationship. A 750+ CIBIL score borrower with a salary account at SBI will get a meaningfully different rate than the same borrower who walks in with no prior relationship. 

QUICK STAT 

As of mid-2026, Bank of Maharashtra reports personal loan rates starting from 8.75% p.a., the lowest among PSBs. SBI starts from ~10.00% p.a. Rates for private banks typically range from 9.99% (pre-approved) to 16%+ for average borrowers.  (Source: Trade Brains / industry data, 2025-26) 

Government Schemes That Only PSBs Offer 

This is where the nationalised banks in India genuinely pull ahead of private banks. Private banks cannot open PMJDY accounts, disburse Mudra loans or issue Kisan Credit Cards. This is one of the clearest practical differences when you compare nationalised banks in India with private banks. 

• PM Jan Dhan Yojana (PMJDY): Zero-balance savings accounts with a RuPay debit card and accident insurance cover. Over 53 crore accounts opened. Only Aadhaar needed to apply. 

• Mudra Loans: Business loans up to ₹20 lakh for micro and small enterprises. Three tiers: Shishu (up to ₹50,000), Kishore (Rs 50,000 to ₹5 lakh) and Tarun (Rs 5 lakh to ₹20 lakh). 

• Kisan Credit Card (KCC): Short-term agricultural credit at subsidised rates, covering seeds, inputs, irrigation and contingency expenses. 

• Stand-Up India: Loans between ₹10 lakh and ₹1 crore for SC/ST borrowers and women entrepreneurs starting new businesses. 

• PM Awas Yojana (PMAY): Subsidised home loans under the Credit Linked Subsidy Scheme for lower-income buyers. 

Here is why this matters in practice. Sunita runs a vegetable stall in a small town in Maharashtra. She had no credit history and no private lender would approve her. The local Bank of Maharashtra branch processed her Shishu Mudra loan of ₹30,000 in 4 days. She repaid it within 3 months. Her CIBIL score started building from that point. A year later, she qualified for a ₹2 lakh Kishore Mudra loan at a lower rate. None of this would have been possible through a private bank. 

PSB Financial Performance: A Turnaround Story 

Five years ago, the conversation around nationalised banks in India was mostly about bad loans. NPA ratios above 11%. Government recapitalisation running into lakhs of crores. Real questions about whether PSBs could compete with private banks long term.  The numbers have shifted substantially since then. Gross NPAs fell to approximately 3.12% and net NPAs to 0.63% as of September 2024. The PSB loan portfolio grew 13.1% in FY 2024-25. SBI’s market cap crossed ₹10 lakh crore in early 2026, making it one of the top 10 globally valued banks. 

QUICK STAT 

PSB gross NPAs fell to ~3.12% and net NPAs to 0.63% as of September 2024. The loan portfolio grew 13.1% in FY 2024-25.  (Source: Industry data / RegisterKaro, 2024-25) 

Digital banking at PSBs has caught up too. SBI YONO now has over 100 million registered users. Canara Bank’s ai1 processes millions of transactions daily. Bank of Baroda’s Bob World is recognised for its NRI-specific digital features.  Media reports in late 2025 speculated about a Merger 2.0 that could cut the 12 remaining PSBs to just 4 by FY 2026-27. As of December 2025, the government officially stated no such proposal is under active consideration. 

How to Open an Account in a Government Bank 

1. Choose your account type: Savings for individuals. Current for businesses. PMJDY if you want zero minimum balance (Aadhaar only needed). 

2. Apply online or visit a branch: SBI has YONO. Bank of Baroda has Bob World. PNB has its own mobile app. Most PSBs now let you start the application online. 

3. Complete KYC: Aadhaar, PAN and a passport photograph. For PMJDY, Aadhaar alone works. 

4. Activate: Online applicants may need a one-time branch visit for biometric check. Account typically active within 1 to 2 working days. 

WATCH OUT 

Minimum balance requirements differ by bank and account type. Missing the required minimum can trigger monthly penalties. Ask the specific requirement before opening, or request a zero-balance account if you qualify. 

Conclusion 

Need a personal loan but unsure if a government bank will approve you? Fibe offers instant personal loans up to ₹10 lakhs with 100% digital application, no branch visits and quick disbursal. We assess more than just your CIBIL score, so you do not need a perfect credit history to apply. Download the Fibe app or visit fibe.in. 

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 is the complete list of government banks in India, spanning both merged and independent nationalised banks in India. The total fell from 27 in 2017 after a series of consolidations, with the last round effective from 1 April 2020. 

Which is the largest government bank in India? 

State Bank of India (SBI) is the largest government bank in India by every key measure: total assets over ₹75 lakh crore, 22,600+ branches, a customer base of 53 crore and operations in 32 countries. Its market capitalisation crossed ₹10 lakh crore in early 2026. 

What is the difference between a public sector bank and a private bank? 

A public sector bank, also called a nationalised bank in India or a PSB, is one where the Government of India holds more than 50% of the shares. A private bank is owned by private shareholders. Both are regulated by the RBI. Public sector banks implement government welfare schemes like PMJDY and Mudra Loans, have wider rural reach and carry implicit sovereign backing. Private banks generally process loans faster and offer better digital banking experiences. 

Do government banks offer better interest rates than private banks? 

For fixed deposits, PSBs tend to offer slightly better rates for senior citizens. For personal loans, government banks offer lower rates if you hold a salary account with that bank and have a CIBIL score above 750. Bank of Maharashtra reportedly leads with rates from 8.75% per annum as of mid-2026. For home loans, rates at public and private sector banks are largely comparable since both are linked to the RBI repo rate. 

Are government banks safer than private banks for deposits? 

Both are regulated by the RBI and deposits are insured by DICGC up to ₹5 lakh. PSBs carry an implicit government guarantee that private banks do not. No major bank of either type has failed in India in recent decades. 

Can I get a personal loan from a government bank with a low CIBIL score? 

Most PSBs require a minimum CIBIL score of around 700 for personal loans. If your score is lower, NBFCs and fintech lenders like Fibe assess alternate data points including income stability and repayment behaviour and may approve you where a PSB would not. 

What happened to Allahabad Bank and Syndicate Bank? 

Both were absorbed into larger PSBs in April 2020. Allahabad Bank became part of Indian Bank. Syndicate Bank merged into Canara Bank. Existing account holders were migrated automatically with no loss of funds. 

Which government bank is best for NRI banking? 

Bank of Baroda has a strong NRI banking reputation with dedicated products across key diaspora markets. SBI also has a major overseas presence across 32 countries and 230+ offices abroad.