List of Government Bank Stocks/Share in India 2025

When the question of safety arises, everyone chooses to store their hard-earned money in a government bank. The banking sector of any nation is crucial in its economic development, and in 1969, the Indian government decided to nationalize fourteen private banks and assume control of their operations.

In this blog, we’ll provide an overview of India’s leading government banks.

Overview of Government Banks

The foundation of the Indian economy is Public Sector Banks, commonly referred to as Government Banks. The Indian government owns a majority stake in these banks, which is why government officials monitor them closely. The main goals of these banks are to put the government’s economic policies into practice and work for the public welfare. 

The Government of India realized the strategic importance of the banking sector and decided to enter the banking business in 1969. It started with the nationalization of the Imperial Bank of India, which was renamed the State Bank of India. The government further nationalized 14 banks in India to expand its market share in the banking industry. As of 2024, the public sector holds around 59% of the public deposits and operates 63% of ATMs across the country.

List of Top 10 Government Banks Stocks in India based on Market Capitalization

The list of top 10 Government Bank stocks are:

S.No.	Government Bank Stocks
1	State Bank of India
2	Bank of Baroda
3	Punjab National Bank
4	Indian Overseas Bank
5	Canara Bank
6	Union Bank of India
7	Indian Bank
8	UCO Bank
9	Bank of India
10	Bank of Maharashtra

Market Information of the Top 10 Government Bank Stocks 

The market information of the top 10 government bank stocks is given below:

Company	Market Capitalization (In INR crores)	Share Prices (In INR)	52 Week High Price (In INR)	52-Week Low Price (In INR)
State Bank of India	7,11,292	797	912	543
Bank of Baroda	1,27,267	246	300	188
Punjab National Bank	1,19,469	104	143	67.3
Indian Overseas Bank	1,03,774	54.9	83.8	36.6
Canara Bank	94,698	104	129	68.4
Union Bank of India	87,748	115	172	91.2
Indian Bank	71,059	528	633	391
UCO Bank	54,746	45.8	70.7	34.7
Bank of India	47,985	105	158	86.4
Bank of Maharashtra	38,799	54.8	73.5	38.6

Read Also: Why Do We Pay Taxes to the Government?

Best Government Banks in India Based on Market Capitalization – An Overview

A brief overview of the best government banks in India is given below:

1. State Bank of India

SBI is the largest public sector bank in India and a titan of the nation’s banking sector, with the largest market share. SBI was founded more than 200 years ago, and its main office is in Mumbai.

SBI’s history dates back to when the Bank of Calcutta, the first joint stock bank in British India, was established in 1806. Three separate presidential banks (the Bank of Bengal, the Bank of Bombay, and the Bank of Madras) were established in a short while in British India. The Imperial Bank of India was founded in 1921 after the three presidential banks merged. 

In 1955, the Indian government nationalized the Imperial Bank of India and renamed it the State Bank of India. In 2017, the State Bank of Bikaner, State Bank of Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore, and Bhartiya Mahila Bank, the six affiliate banks of SBI, merged with the State Bank of India. As a result, the banks operated more efficiently, and it was clear how much SBI has contributed to the growth of financial services in rural areas. At present, SBI has a strong distribution network consisting of 22,405 branches and 65,627 ATMs. 

1Y Return (%)	3Y Return (%)	5Y Return (%)
-3.42%	43.85%	125.00%

2. Bank of Baroda

The ruler of Baroda, Maharaja Sayajirao Gaekwad III, established the bank in 1908. He established the bank to promote the growth of the regional economy. Later, in 1969, the Indian government nationalized the bank and other commercial banks. The bank expanded its operations between 1970 and 1990. The bank opened branches in many cities across the US during this period, as well as in London, Dubai, Hong Kong, New York, and other places. Dena Bank and Vijaya Bank merged with Bank of Baroda in 2019, which led to its becoming the third-largest public sector bank in India, increasing its market share in terms of assets and customers. The organization is currently operating in more than 17 nations, with more than 11,000 ATMs and 8,243 branches. Apart from offering retail banking services, the bank extends wealth management services. The bank’s headquarters are in Vadodara, Gujarat.  

1Y Return (%)	3Y Return (%)	5Y Return (%)
-23.99%	92.46%	140.52%

3. Punjab National Bank

In 1894, Lala Lajpat Rai, the Indian liberation hero, founded the bank in Lahore, Pakistan. It was the country’s first Swadeshi bank. After obtaining independence, the bank moved its headquarters to New Delhi. Later, in 1969, it was nationalized along with thirteen other banks. In 2003, it acquired Nedungadi Bank, and in 2020, it merged with the United Bank of India and Oriental Bank of Commerce. These mergers made it the second-largest sector bank in the country. The bank has a network of more than 10,000 branches and 13,000 ATMs across India and has operations in the UK, Hong Kong, and Dubai.

1Y Return (%)	3Y Return (%)	5Y Return (%)
-26.14%	146.66%	70.52%

4. Indian Overseas Bank

This bank was founded in 1937 by Mr. Chidambaram Chettyar, who was a famous businessman and a former Indian banker. The bank’s objective was to establish overseas banking and FOREX services. Along with other banks, Indian Overseas Bank was also nationalized in 1969. In 2000, the bank was listed on the Indian stock exchange. The bank has branches in different countries like Singapore, Hong Kong, and Thailand. The bank’s headquarters is situated in Chennai, Tamil Nadu.

1Y Return (%)	3Y Return (%)	5Y Return (%)
-30.84%	141.35%	406.30%

5. Canara Bank

Canara Bank was initially named as the Canara Hindu Permanent Fund when it was founded in 1906 by well-known philanthropist Ammembal Subba Rao Pai. The bank’s primary goal is to promote saving behaviors among its clientele. In 1910, the bank was renamed as Canara Bank. The Government of India nationalized the bank in 1969. Banks introduced digital banking systems in the early 1980s. The Government of India announced the merger of Syndicate Bank and Canara Bank in 2020, which made Canara Bank one of the country’s biggest banks in terms of branches and personnel. The bank also opened branches in other locations, including Hong Kong and London. The organization’s headquarters is in Bengaluru. 

1Y Return (%)	3Y Return (%)	5Y Return (%)
-24.77%	82.02%	136.78%

6. Union Bank of India

The Union Bank of India has historical significance because it was founded in 1919 by an Indian businessman named Seth Sitaram Poddar, and its corporate office was inaugurated by Mahatma Gandhi. The bank’s initial clientele consisted of small enterprises and farmers. The bank and other well-known Indian banks were nationalized in 1969. The Corporation Bank and Andhra Bank were amalgamated into Union Bank of India in 2020 as a result of the government’s efforts to unify the Indian banking sector. In addition to its numerous offices in other nations like Hong Kong, Sydney, Dubai, and so on, the bank has over 8,400 branches throughout India. The bank’s main office is located in Mumbai.

1Y Return (%)	3Y Return (%)	5Y Return (%)
-22.27%	153.63%	129.19%

7. Indian Bank

Indian bank was established in 1907 during the height of the Swadeshi Movement. A businessman named Mr Ramaswami Chettiar founded the bank to give Indian businessmen access to financial services. The Indian government nationalized Indian Bank in 1969, along with thirteen other banks. Following this, the bank rapidly expanded and has overseas branches in Singapore and Sri Lanka. The Indian government announced the merger of Allahabad Bank and Indian Bank in April 2020 to improve the bank’s operational efficiency. The bank is now concentrating on offering its clients digital banking options. The company’s main office is in Chennai, Tamil Nadu. 

1Y Return (%)	3Y Return (%)	5Y Return (%)
-3.53%	243.55%	498.53%

8. UCO Bank

Ghyanshyam Das Birla, a well-known Indian industrialist, established the UCO Bank in 1943. The bank was previously known as United Commercial Bank. The bank became the first Indian bank to open a branch outside India and opened its first overseas branch in London in 1946. The bank was nationalized in 1969. In 1985, the bank rebranded itself as UCO Bank, and today, it operates over 3000 branches throughout India in addition to a few overseas branches. Its main office is located in Kolkata. 

1Y Return (%)	3Y Return (%)	5Y Return (%)
-33.87%	211.51%	176.41%

9. Bank of India

The bank was founded in 1906 by a group of Mumbai businessmen and was held privately before being nationalized in 1969. Following the nationalization of the Bank of India in 1969, the corporation concentrated on growing and opening branches throughout India as well as abroad in places like New York, Tokyo, and London. The bank was crucial to the growth of the economy after it was liberalized in 1991. Bank of India is the founding member of the SWIFT (Society for Worldwide InterBank Financial Telecommunications). The bank’s headquarters is in Mumbai. 

1Y Return (%)	3Y Return (%)	5Y Return (%)
-27.44%	90.05%	57.49%

10. Bank of Maharashtra

V.G. Kale and D.K. Sathe founded the bank in 1935 to offer banking services to the local population. By 1940, the bank had spread throughout the state of Maharashtra and offered banking services to the state’s small business owners and farmers. After being nationalized in 1969, the bank expanded operations throughout India. The bank also implemented several government initiatives, including the Pradhan Mantri Jan Dhan Yojana, to give the nation’s rural residents access to basic financial services. The bank’s headquarters is in  Pune, Maharashtra. 

1Y Return (%)	3Y Return (%)	5Y Return (%)
-20.98%	148.59%	296.10%

Read Also: How has Budget 2025 impacted Bank Nifty?

Key Performance Indicators (KPIs)

Company	Net Profit Margin (%)	ROE (%)	Return of Asset (%)	P/E (x)	P/B (x)
State Bank of India	15.51	17.31	0.99	10.30	1.84
Bank of Baroda	15.55	15.67	1.13	6.69	1.07
Punjab National Bank	7.63	8.92	0.56	10.16	1.18
Indian Overseas Bank	11.07	10.73	0.75	36.85	4.18
Canara Bank	13.37	18.40	0.99	6.05	1.03
Union Bank of India	13.65	15.02	0.98	6.19	0.9
Indian Bank	14.60	15.51	1.05	8.12	1.36
UCO Bank	7.56	6.90	0.51	14.53	2.27
Bank of India	10.45	10.30	0.71	6.96	0.76
Bank of Maharashtra	19.78	22.09	1.32	8.64	2.11

Benefit of Investing in Government Bank Stocks

There are various benefits of investing in Government bank stocks, a few of which are mentioned below-

• Dividend Income – For investors looking for dividends, government bank stocks are a good investment option, as most of them provide dividends. 
• Diversification Benefit – You can lower the risk in your portfolio by investing in government bank stocks, as they are backed by the government.
• Economic Growth – Investing in public sector banks allows you to contribute to the nation’s long-term development.  

Factors to be considered before Investing in Government Bank Stocks

Before making any investment in the government bank stocks, there are various factors to be taken into consideration-

• Non-Performing Assets – Before investing in PSBs, one should analyze the bank’s profitability and NPA ratio.
• RBI Policies – If someone is considering a short-term investment in PSBs, they should take the RBI’s monetary policies into consideration as they have the potential to affect the bank’s profitability. 
• Company’s Financial – One should carefully review the company’s financial data, particularly its income statement and balance sheet, before investing in any government banking stock.  

Future of Government Bank Sector in India

India’s banking sector has a bright future since these banks are backed by the Government of India, which ensures that public deposits with these banks remain safe. Government banks hold the majority of public deposits, which makes them a major player in the Indian banking sector. They are subject to the guidelines established by the RBI. Given its role in the nation’s banking sector, government banks are seen as an essential component of the Indian economy.  

Read Also: Top 10 Sectors in the Indian Stock Market

Conclusion

To sum up, government banks provide an attractive investment opportunity because their expansion will automatically translate into the expansion of the Indian economy. Even though they face challenges due to non-performing assets and fierce competition from private banks, government banks are doing remarkably well because of government assistance. If you’re interested in investing in these banks, be sure to talk to your investment advisor and take your risk tolerance into account. 

Frequently Asked Questions (FAQs)