India’s banking sector plays a critical role in driving the economy, and government banks continue to be the backbone of this system. As of 2025, there are 12 Public Sector Banks (PSBs) in India, following various mergers and consolidations done by the government to strengthen the sector.

If you’re searching for the best government banks in India for savings, loans, or reliable services, here’s a detailed list of the top government banks in India 2025 along with what makes them stand out.

What Are Government Banks?

Government banks, also known as public sector banks, are financial institutions where the majority stake (more than 50%) is held by the Government of India. These banks are trusted for their stability, widespread reach, and customer-friendly policies.

List of Government Banks in India 2025

Below is the updated list of government banks in India as of 2025:

1. State Bank of India (SBI)
   
   

• The best govt bank in India by size and customer base.
  
  

• Offers excellent digital services and strong rural presence.
  
  

Punjab National Bank (PNB)

• Known for its legacy and large branch network.
  
  

• Offers a wide range of retail and corporate banking services.
  
  

Bank of Baroda (BoB)

• Among the top government banks in India post-merger.
  
  

• Strong international presence.
  
  

Canara Bank

• One of the best nationalised banks in India.
  
  

• Offers competitive interest rates on loans and deposits.
  
  

Union Bank of India

• It expanded after mergers with Andhra Bank and Corporation Bank.
  
  

• Good digital banking options.
  
  

Indian Bank

• Merged with Allahabad Bank.
  
  

• Offers strong retail banking services.
  
  

Bank of India (BOI)

• Trusted public sector banks with good loan schemes.
  
  

Central Bank of India

• One of the oldest government banks in India.
  
  

• Focused on rural and semi-urban banking.
  
  

Indian Overseas Bank (IOB)

• Strong presence in South India and international markets.
  
  

UCO Bank

• Known for customer-centric services.
  
  

Bank of Maharashtra

• Regional bank with growing pan-India reach.
  
  

Punjab & Sind Bank

• Smaller network, but reliable service in North India.

Which Is the Best Government Bank in India?

When we talk about the best government banks in India, SBI stands out for its size, digital innovation, and service diversity. For businesses, Bank of Baroda and PNB are also top choices. If you're looking for personal loans, savings accounts, or home loans, banks like Canara Bank, Union Bank, and Indian Bank offer competitive products.

Conclusion

Choosing the right bank depends on your needs, but the top 10 government banks in India mentioned above are all safe, reliable, and offer excellent services. Whether it's for savings, investments, or loans, these best nationalised banks in India are trusted by millions.