We cannot live without banks. We can save, manage and even take loans from them. In India, public sector banks are commercial banks that are owned and operated by the Indian government. Discover 10 of the top government banks, their history and market positions in this comprehensive guide.
State Bank of India
Chairman: Dinesh Kumar Khara
Founded in 1955, the State Bank of India (SBI), is the largest public sector bank in India. With an extensive array of banking and financial services, it is a prominent figure in the nation’s banking sector, catering to millions of domestic and international clients.
In the first quarter of the 2023-24 fiscal year, SBI surpassed Reliance Industries to become India’s most profitable company. Exceeding estimates, the country’s largest lender reported a 27.92 per cent increase in net profit year-on-year for the July-September 2024 quarter, driven by a sharp rise in non-interest income, including treasury and foreign exchange earnings.
Check: SBI Business Loan Interest Rate
Bank of Baroda
MD & CEO: Debadatta Chand
Bank of Baroda (BoB), founded in 1908, ranks second among India’s top 10 government banks. Governed by the Indian Government and the Reserve Bank of India, its Vadodara headquarters symbolises its historic impact on the nation’s banking scene.
The PSU lender provides a wide range of financial services domestically and globally, tailored to meet the unique needs of its clientele. The bank prides itself on delivering exceptional customer service. Notably, BoB has made history with the first-ever three-way merger alongside Dena Bank and Vijaya Bank.
Bank of Baroda reported a 9.5 percent rise in standalone net profit to Rs 4458 crore for the quarter that ended June 2024.
Also Read: Top 10 Private Sector Banks in India
Punjab National Bank
MD & CEO: Atul Kumar Goel
Punjab National Bank (PNB), founded in 1894, ranks third among India’s top 10 public sector banks. With its headquarters in New Delhi, the bank boasts an extensive customer base exceeding 180 million. In September 2023, PNB inked a Memorandum of Understanding (MoU) with REC (Rural Electrification Corporation) to explore funding opportunities in the power infrastructure and logistics sectors.
Under this partnership, REC and PNB will collaborate to co-finance loans totalling Rs 55,000 crore over the next three years. Punjab National Bank reported a 145 per cent year-on-year increase in its net profit at Rs 4,303 crore for the second quarter (Q2) of 2024-25 (FY25). The net profit was Rs 1,756 crore in the year-ago period. The bank’s net interest income (NII) grew 5.99 per cent Y-o-Y to Rs 10,517 crore in Q2.
Indian Overseas Bank
MD & CEO: Ajay Kumar Srivastava
Indian Overseas Bank (IOB), founded in 1937, is headquartered in Chennai, Tamil Nadu. Beyond its domestic operations, IOB has extended its presence globally. On 5 December 2021, IOB received the Degidhan Award 2020–21 from the Ministry of Electronics and Information Technology for achieving the second highest percentage of digital payment transactions among public sector banks.
IOB announced robust financial results for the quarter ending September 30, 2024 (Q2FY25), reflecting strong growth across key financial metrics and a continued focus on asset quality improvement. Total Business saw a significant year-on-year (Y-o-Y) growth of 12.20%, reaching Rs 5,40,801 crore, up from Rs 4,82,006 crore.
Canara Bank
MD & CEO: K. Satyanarayana Raju
Canara Bank was founded in 1906. The bank has gone through the various phases of its growth trajectory over hundred years of its existence. The growth of the bank was phenomenal, especially after nationalisation in the year 1969, attaining the status of a national level player in terms of geographical reach and clientele segments.
Canara Bank’s net profit during the second quarter of 2024-25 (Q2FY25) rose 11.31 per cent year-on-year (Y-o-Y) to Rs 4,014 crore amid pressure on net interest margins. Sequentially, the Bengaluru-based lender’s net profit rose 2.79 per cent from Rs 3,905 crore in June 2024 (Q1FY25).
Union Bank of India
MD & CEO: A. Manimekhalai
Union Bank of India was established in 1919. With its headquarters in Mumbai, the bank was inaugurated by Mahatma Gandhi. On 1st April 2020, the Andhra Bank and the Corporation Bank merged with the Union Bank of India. The bank has expanded its presence across all states and union territories. The bank’s total business as of 30th September 2024 stood at Rs 21,70,779 crore, comprising Rs 12,41,947 crore of deposits and ₹ 9,28,832 crore of advances.
Indian Bank
MD & CEO: Shanti Lal Jain
Indian Bank, established in 1907, is headquartered in Chennai, Tamil Nadu. On 19 July 1969, the Government of India nationalised 14 top banks, including Indian Bank. The bank was appointed as the lead bank for nine districts in the States of Tamil Nadu, Andhra Pradesh and Kerala and the Union Territory of Pondicherry. On 1 April 2022, Indian Bank and Allahabad Bank merged. Total business of the bank has touched Rs 1,221,773 crore as of 31 March 2024. This is a significant increase from the previous year, when the bank’s total business was ₹10,94,752 crore.
UCO Bank
MD & CEO: Ashwani Kumar
The United Commercial Bank Ltd. was founded in 1943. With its registered and head office at Kolkata in West Bengal, the year 1985 opened a new chapter for the bank as the name of the bank changed to UCO BANK by an Act of Parliament. The customer friendly and socially committed character, however, remained even with this change in name which has, over the years, been regarded as one of the well-known and vibrant banks in the country. The PSU lender reported around 50% year-on-year growth in net profit of Rs 602.7 crore in the September quarter this fiscal, backed by over 45 % rise in operating profit.
Also Read: Best Bank for Home Loan
Central Bank of India
MD & CEO: Matam Venkata Rao
Founded in 1911, the Central Bank of India stands among India’s top 10 public sector banks. Among the Public Sector Banks, Central Bank of India can be truly described as an All India Bank, due to distribution of its large network in all 28 States and also in 7 out of 8 Union Territories in India. The bank holds a very prominent place among the public sector banks on account of its network of 4539 branches. The bank reported a standalone 41.38 per cent jump in standalone profit at Rs 807.34 crore for the fourth quarter of the financial year 2023-24 (Q4 FY24). The bank had reported a net profit of Rs 571.03 crore for the same period last year. Sequentially this was a 12.46 per cent increase from Rs 717.86 crore in Q3.
Bank of India
MD & CEO: Rajneesh Karnatak
Established in 1906, the Bank of India (BoI) has been government-owned since nationalisation in 1969. BoI is a founding member of SWIFT (Society for Worldwide Inter Bank Financial Telecommunications), which facilitates provision of cost-effective financial processing and communication services. BoI, headquartered in Mumbai, Maharashtra, aims to stimulate economic development through various financial offerings and services. The bank has over 5,084 branches in India spread over all states and union territories including specialised branches.
BoI reported a 63 per cent jump in net profit to Rs 2,374 crore for the second quarter ended on September 30, 2024, on higher non-interest income. The public sector bank had a net profit of Rs 1,458 crore in the quarter ended in September 2023.
