Government banks in India play a vital role in ensuring financial stability and inclusivity. They are trusted institutions, known for providing secure banking services to individuals, businesses, and rural communities alike. As of 2025, the government bank list has evolved, with several mergers creating stronger, more efficient entities.

Let’s explore the latest list of government banks in India and understand their importance in the Indian economy.

What Are Government Banks?

Government banks (also known as public sector banks) are financial institutions where the majority stake is held by the Central Government. These banks operate under the guidelines of the Reserve Bank of India (RBI) and follow strict regulatory standards.

They are known for their wide branch network, especially in remote and rural areas, and are key to implementing government financial schemes such as:

• Pradhan Mantri Jan Dhan Yojana (PMJDY)

• PM Mudra Yojana

• Direct Benefit Transfer (DBT)

Updated Government Bank List in India 2025

Here is the latest and official government bank list for 2025:

1. State Bank of India (SBI)

2. Punjab National Bank (PNB)

3. Bank of Baroda (BoB)

4. Canara Bank

5. Union Bank of India

6. Bank of India (BOI)

7. Indian Bank

8. UCO Bank

9. Bank of Maharashtra

10. Punjab & Sind Bank

These government banks in India are fully or majority-owned by the Government of India and play a major role in the country’s financial system.

Key Highlights of Government Banks in India

• State Bank of India is the largest government bank with the most extensive domestic and global presence.

• In recent years, the government has merged several smaller banks into larger ones to enhance operational efficiency and reduce non-performing assets.

• These banks are instrumental in driving financial inclusion and supporting priority sectors like agriculture, MSMEs, and rural development.

Why Choose a Government Bank?

Choosing a government bank in India means trusting a secure and reliable institution. Customers benefit from:

• Government-backed deposits

• Broad ATM and branch networks

• Low-cost banking services

• Access to various government schemes

Conclusion

The list of government banks in India 2025 reflects a stronger, more efficient public sector banking system. Whether you’re an individual, farmer, student, or business owner, government banks in India continue to be a safe and dependable option for all your financial needs.