Top 10 Government Banks in India

Last Updated : June 17, 2025, 5:01 p.m.

India’s public sector banks (PSBs), also known as government banks, form the backbone of the country’s financial system, offering stability, trust, and widespread accessibility. As of 2025, there are 12 government banks in India, majority-owned by the government (holding over 50% stakes), regulated by the Reserve Bank of India (RBI), and insured for deposits up to ₹5 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC). These banks prioritize financial inclusion, serving millions with savings accounts, loans, and digital banking services, particularly in rural and underserved areas.

This article lists the top 10 government banks for savings accounts in 2025,ranked by insights into their interest rates, minimum balance requirements, branch/ATM networks, and unique features.

List of Public Sector Banks in India 2025

There are 12 government banks in India. They are mentioned below -

• State Bank of India
  
• Bank of Baroda
  
• Punjab National Bank
  
• Bank of India
  
• Union Bank of India
  
• Canara Bank
  
• Bank of Maharashtra
  
• Central Bank of India
  
• Indian Overseas bank
  
• Indian Bank
  
• UCO Bank

Criteria for Selecting Top 10 Government Banks

• Market Capitalization: Indicates financial strength and market trust.
• Interest Rates: Higher rates (2.70%-4.00% p.a.) enhance savings growth.
• Minimum Balance: Zero or low-balance options improve accessibility.
• Branch and ATM Network: Extensive reach ensures convenience, especially in rural areas.
• Digital Banking: User-friendly apps and online platforms for seamless transactions.
• Customer Service: Reliable support and positive feedback for user satisfaction.

Top 10 Government Banks and Features They Offer

Below are the details of the top 10 government banks in the country and what features they offer.

State Bank of India (SBI)

• Interest Rate: 2.70%-3.00% p.a., based on balance slabs.
• Minimum Balance: Nil (zero-balance accounts available).
• Network: 22,500+ branches, 63,580+ ATMs, 82,900 business correspondent outlets.
• Digital Banking: YONO app supports digital account opening, UPI, bill payments, and auto-sweep facility for higher interest via fixed deposits.
• Key Features: Government-backed stability, extensive rural reach, no minimum balance penalties, and schemes like Jan Dhan Yojana for financial inclusion.
• Why Top Ranked: As India’s largest public sector bank, SBI’s vast network, zero-balance accounts , and trust make it ideal for rural and urban customers.

Bank of Baroda (BoB)

• Interest Rate: 2.75%-3.00% p.a.
• Minimum Balance: ₹500-₹2,000 (varies by account type and location).
• Network: 8,214 branches, 10,033 ATMs.
• Digital Banking: BoB World app offers mobile banking, UPI , and online services.
• Key Features: Global presence in 20+ countries, NRI services, and forex transactions. Merged with Dena Bank and Vijaya Bank for enhanced reach.
• Why Ranked: Strong rural and international presence, with a focus on modern digital tools and customer satisfaction.

Punjab National Bank (PNB)

• Interest Rate: 2.70%-3.00% p.a.
• Minimum Balance: Nil to ₹2,000 (depending on account type).
• Network: 10,108 branches, 12,455 ATMs.
• Digital Banking: PNB One app supports digital transactions, loans, and investments.
• Key Features: Serves 180 million+ customers, with services in personal, corporate, and agricultural banking. Merged with Oriental Bank of Commerce and United Bank of India.
• Why Ranked: Extensive customer base and technological improvements make PNB a reliable choice for diverse banking needs.

Union Bank of India

• Interest Rate: 2.75%-4.00% p.a. (highest among PSBs for certain accounts).
• Minimum Balance: Nil to ₹1,000 (e.g., no minimum for accounts without cheque book).
• Network: 9,693 branches, 10,033+ ATMs.
• Digital Banking: Union Digital app provides UPI, remittances, and account management.
• Key Features: Merged with Andhra Bank and Corporation Bank, offering corporate, personal, and NRI banking. Strong focus on financial inclusion.
• Why Ranked: Competitive interest rates and widespread network, ideal for rural and NRI customers.

Canara Bank

• Interest Rate: 2.90%-3.05% p.a.
• Minimum Balance: ₹1,000-₹2,000 (varies by location).
• Network: 9,585 branches, 12,120 ATMs.
• Digital Banking: CANDI app offers digital banking, UPI, and loan applications.
• Key Features: Serves 113 million customers, with services in retail, corporate, and agricultural banking. Known for technological advancements.
• Why Ranked: Strong presence and digital innovation, with a focus on customer accessibility.

Indian Overseas Bank (IOB)

• Interest Rate: 2.70%-3.00% p.a.
• Minimum Balance: ₹500-₹1,000 (varies by account).
• Network: 3,220 branches, 3,400+ ATMs (approximate).
• Digital Banking: IOB Mobile app supports UPI, remittances, and NRI services.
• Key Features: Focus on international trade and NRI products, with net profit growth in Q4 2024.
• Why Ranked: Strong global presence and improving asset quality, suitable for NRI and trade-focused customers.

Bank of India (BoI)

• Interest Rate: 2.75%-2.90% p.a.
• Minimum Balance: ₹500-₹10,000 (varies by account and location).
• Network: 5,108 branches, 5,551 ATMs.
• Digital Banking: BOI Star Connect app offers mobile banking and digital payments.
• Key Features: Global presence in 24 countries, with services in retail, MSME, and corporate banking.
• Why Ranked: Long history (est. 1906) and international reach make it a solid choice for diverse banking needs.

Indian Bank

• Interest Rate: 2.80%-3.00% p.a.
• Minimum Balance: ₹250-₹1,000 (varies by account type).
• Network: 5,800 branches, 4,899 ATMs.
• Digital Banking: IndPay app supports UPI, digital loans, and account management.
• Key Features: Strong presence in southern India, with 100 million+ customers and services for retail and corporate banking.
• Why Ranked: High stock returns and regional dominance, ideal for southern India customers.

Bank of Maharashtra

• Interest Rate: 2.80%-3.00% p.a.
• Minimum Balance: ₹500-₹2,000 (varies by location).
• Network: 2,300 branches, 2,500 ATMs (approximate).
• Digital Banking: MahaMobile app offers UPI, digital payments, and loan services.
• Key Features: Focus on SME lending and efficient service delivery, with strong regional presence in Maharashtra.
• Why Ranked: High stock returns and focus on small businesses make it attractive for regional customers.

UCO Bank

• Interest Rate: 2.70%-2.90% p.a.
• Minimum Balance: ₹500-₹1,500 (varies by account).
• Network: 3,086 branches, 2,236 ATMs.
• Digital Banking: UCO mBanking app supports contactless payments and digital services.
• Key Features: Focus on financial inclusion, microfinance, and rural banking. Approved to raise ₹10,000 crore via QIP in FY25.
• Why Ranked: Commitment to underserved communities and improving digital services.

Interest for Top 10 Government Banks and Digital Features

The table below shows interest rates and minimum balance requirements

Conclusion

The top 10 government banks in India for savings accounts in 2025—SBI, Bank of Baroda, PNB, Union Bank, Canara Bank, IOB, Bank of India, Indian Bank, Bank of Maharashtra, and UCO Bank—offer a blend of stability, accessibility, and essential financial services. SBI leads with its vast network and zero-balance accounts, making it ideal for rural and low-income customers. Banks like BoB and PNB excel in global and corporate banking, while Union Bank offers competitive interest rates. These banks support India’s economic growth through financial inclusion initiatives like Jan Dhan Yojana and digital transformation. Choose based on your needs: SBI for accessibility, Union Bank for higher rates, or IOB for NRI services.