Public sector banks in India, often referred to as the government banks of India, occupy a pivotal role in India’s financial landscape, exerting a profound influence on its economic advancement. PSBs have driven financial inclusion and socio-economic progress by actively supporting government initiatives like the Jan Dhan Yojana and Mudra Yojana. Their extensive branch networks extend banking services to even the remotest corners, ensuring accessibility for all.
Despite challenges such as increased competition from private banks and the imperative to embrace advanced technology, government banks of India remain a fundamental component of India’s banking system.In this article, we will explore the public sector banks in India.
The public banks in India
Here are all the public sector banks in India, with market cap data (as of August 22, 2024) sourced from BSE India. Also Read: Commercial banks in India: Types and functions
| Rank & Bank | Market Cap (Rs Lakh Crore) | Headquarter |
|---|---|---|
| #1 State Bank of India | 7.33 | Mumbai |
| #2 Bank of Baroda | 1.32 | Vadodara |
| #3 Punjab National Bank | 1.29 | New Delhi |
| #4 Indian Overseas Bank | 1.20 | Chennai |
| #5 Canara Bank | 1.02 | Bengaluru |
| #6 Union Bank of India | 0.96 | Mumbai |
| #7 Indian Bank | 0.74 | Chennai |
| #8 UCO Bank | 0.63 | Kolkata |
| #9 Bank of India | 0.54 | Mumbai |
| #10 Central Bank of India | 0.53 | Mumbai |
| #11 Bank of Maharashtra | 0.45 | Pune |
| #12 Punjab & Sind Bank | 0.41 | New Delhi |
Top 10 government banks in India by market cap
Now, we have ranked the top 10 government banks in India by market cap through the list above. Let’s take a closer look:Note: The revenue data for FY24 is sourced from BSE India.
Also Read: Top 10 index funds in India by AUM
1. State Bank of India
- Chairman: Dinesh Kumar Khara
- Revenue FY 24: Rs4,15,130.66
SBI, established in 1955, is the largest public sector banks in India. It is a prominent figure in the nation’s financial sector. With an extensive array of banking and financial services, it caters 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 corporation.
2. Bank of Baroda
- MD & CEO: Debadatta Chand
- Revenue FY 24: Rs1,12,605.94
Bank of Baroda (BoB), founded in 1908, ranks second among India’s top 10 public sector banks. BoB offers a comprehensive range of financial services domestically and globally and is renowned for its robust presence and unwavering commitment to customer satisfaction. Notably, BoB has made history with the first-ever three-way merger alongside Dena Bank and Vijaya Bank. On July 31, 2024, the PSU lender reported a 9.5 percent rise in standalone net profit at Rs4,458 crore for the quarter that ended June 30, 2024. It reported a standalone net profit of Rs4,070 crore in the year-ago period.
3. Punjab National Bank
- MD & CEO: Atul Kumar Goel
- Revenue FY 24: Rs1,06,901.62
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. Freedom fighter Lala Lajpat Rai was a founding member and pivotal in the bank’s early management.Punjab National Bank signed 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 Rs55,000 crore over the next three years.
4. Indian Overseas Bank
- MD & CEO: Ajay Kumar Srivastava
- Revenue FY 24: Rs24,049.73
Indian Overseas Bank (IOB), a prominent public sector bank in India founded in 1937, is headquartered in Chennai, Tamil Nadu. Beyond its domestic operations, IOB has extended its presence internationally. On July 22, 2024, IOB reported a net profit of Rs633 crore in the first quarter of fiscal 2024-25, 27 percent higher than Rs500 crore reported in the corresponding quarter last year.
5. Canara Bank
- MD & CEO: K. Satyanarayana Raju
- Revenue FY 24: Rs1,08,687.93
Canara Bank was founded in 1906. With its headquarters in Bengaluru, Karnataka, the bank boasts a rich and illustrious legacy of catering to the financial requirements of numerous patrons. Canara Bank’s net profit during the quarter ended June 30, 2024, grew by 10.5 percent year-on-year (YoY) to Rs3,905 crore. It had posted a net profit of Rs3,535 Crore in the quarter ended June 2023. This improvement is attributed to non-interest income, like fees and recoveries.
6. Union Bank of India
- MD & CEO: A. Manimekhalai
- Revenue FY 24: Rs99,777.96
Union Bank of India, the fourth largest public sector bank in India, was established in 1919, and boasts a substantial nationwide presence. Mahatma Gandhi inaugurated the Union Bank of India’s office upon its establishment. Subsequently, in 1969, the bank underwent nationalisation, joining forces with 14 other banks to pool their resources and funds for the country’s progress.The Union Bank has recently introduced two new debit card variants on the Rupay network—a metal card for the ultra HNI and one specifically for women. Both bring unique benefits to the respective user groups.
7. Indian Bank
- MD & CEO: Shanti Lal Jain
- Revenue FY 24: Rs55,614.78
Indian Bank, established in 1907, is headquartered in Chennai, Tamil Nadu. With a rich legacy and a widespread national presence, Indian Bank is committed to offering innovative banking solutions and customer-centric services.
8. UCO Bank
- MD & CEO: Ashwani Kumar
- Revenue FY 24: Rs21,854.34
UCO Bank was founded in 1943. The bank maintains a substantial national presence in Kolkata, West Bengal. UCO Bank prioritises maintaining trust and delivering dependable banking services to address financial requirements, thus contributing to the nation’s economic advancement and well-being.UCO Bank has reported a 147 percent YoY rise in its net profit for the quarter ended June 2024 at Rs551 crore, led by higher other income, and interest margin.
9. Bank of India
- MD & CEO: Rajneesh Karnatak
- Revenue FY 24: Rs60,709.49
Established in 1906, the Bank of India (BoI) is among India’s oldest public sector banks. BoI, headquartered in Mumbai, Maharashtra, boasts a storied history and an extensive branch network nationwide. The bank aims to stimulate economic development through various financial offerings and services.The bank reported a 13.7 percent YoY increase in net profit at Rs3,678.9 crore for the first quarter that ended June 30, 2024. Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, stood at Rs9,412.1 crore, up 6.5 percent from the year before.
10. Central Bank of India
- MD & CEO: Matam Venkata Rao
- Revenue FY 24: Rs30,722.23
Founded in 1911, the Central Bank of India stands among India’s top 10 public sector banks. On July 18, 2024, the Central Bank of India reported a 110 percent on-year growth in its profit after tax to Rs879.94 crore in the first quarter of the current financial year. On sequential basis, net profit rose around 9 percent.