There are 12 operating public sector banks in India. Bank consolidation from 2017 to April 2020 reduced 27 state-run lenders to 12 public sector banks.
List of Government Banks in India
| Bank Name | Headquarters | Digital Platform / Key Services | Status / Ownership |
|---|---|---|---|
| State Bank of India (SBI) | Mumbai, Maharashtra | YONO SBI & YONO Lite SBI App | Public Sector Bank (55.47% government shareholding as of June 2026) |
| Bank of Baroda (BOB) | Vadodara, Gujarat | bob World Mobile Banking | Public Sector Bank (63.97% government shareholding as of June 2026) |
| Punjab National Bank (PNB) | New Delhi | PNB ONE & PNB Genie | Public Sector Bank |
| Canara Bank | Bengaluru, Karnataka | Canara ai1 Mobile App | Public Sector Bank (62.93% government shareholding as of March 2026) |
| Union Bank of India | Mumbai, Maharashtra | Vyom Mobile Banking App | Public Sector Bank (absorbed Andhra Bank and Corporation Bank) |
| Bank of India (BOI) | Mumbai, Maharashtra | BOI Mobile App & Star Token | Public Sector Bank |
| Indian Bank | Chennai, Tamil Nadu | IndOASIS Mobile Banking App | Public Sector Bank |
| Central Bank of India | Mumbai, Maharashtra | Cent Mobile App | Public Sector Bank |
| Bank of Maharashtra | Pune, Maharashtra | Mahamobile App | Public Sector Bank |
| UCO Bank | Kolkata, West Bengal | UCO mBanking Plus App | Public Sector Bank |
| Indian Overseas Bank (IOB) | Chennai, Tamil Nadu | IOB Mobile Banking App | Public Sector Bank |
| Punjab & Sind Bank | New Delhi | PSB UnIC Mobile App | Public Sector Bank |
How Many Government Banks Are There After the Mergers
India has 12 public sector banks (PSBs) operating as of 2026, consolidated down from 27 existing before 2017. The Government of India announced a major structural consolidation on 30 August 2019, merging 10 public sector banks into 4 large anchor entities to scale capital efficiency.
The total count of public sector banks dropped from 27 in 2017 to 18 in April 2019 following the absorption of Vijaya Bank and Dena Bank into Bank of Baroda. The subsequent mega-merger effective 1 April 2020 consolidated 10 state-run lenders into 4 anchor institutions, leaving 12 public sector banks operating nationwide in 2026.
This consolidation reduced administrative overhead across public sector lenders, creating larger balance sheets for large-scale home financing. Out of the 12 operating public sector banks, State Bank of India remains the largest lender, handling over ₹40 lakh crore in total deposits across 22,000 retail branches as of March 2024.
Bank Mergers: Which Bank Went Into Which
The Government of India consolidated 27 public sector banks into 12 operating entities between 2017 and 2020 through structural amalgamations. Under this consolidation strategy, smaller public sector lenders merged into six major anchor banks to create institutions with higher lending capacities.
| Anchor Bank (Surviving Entity) | Merged Banks / Amalgamated Entities | Effective Merger Date |
|---|---|---|
| State Bank of India (SBI) | State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore, Bharatiya Mahila Bank | 1 April 2017 |
| Bank of Baroda | Vijaya Bank, Dena Bank | 1 April 2019 |
| Punjab National Bank (PNB) | Oriental Bank of Commerce (OBC), United Bank of India | 1 April 2020 |
| Canara Bank | Syndicate Bank | 1 April 2020 |
| Union Bank of India | Andhra Bank, Corporation Bank | 1 April 2020 |
| Indian Bank | Allahabad Bank | 1 April 2020 |
Following these consolidations, account holders and home loan borrowers of absorbed entities shifted to the respective anchor bank with updated IFSC codes and standardized loan interest rate structures.
Regional Rural Banks and Payments Banks Are Not on This List
Regional Rural Banks (RRBs) and Payments Banks do not count as commercial Public Sector Banks (PSBs) because they operate under distinct RBI licensing frameworks. As of 2026, India has 12 commercial PSBs, 28 RRBs (reduced from 43 under the 'One State-One RRB' consolidation policy effective May 1, 2025), and 5 active Payments Banks.
RRBs are jointly owned by the Central Government (50%), state governments (15%), and sponsor public sector banks (35%). Payments Banks cannot issue credit cards or process home loans, and deposit limits are capped at ₹2 lakh per customer.
| Bank Category | Count (as of 2026) | Primary Ownership Structure | Lending Capability | Home Loan Availability |
|---|---|---|---|---|
| Public Sector Banks (PSBs) | 12 | Central Government (51%+ majority equity) | Full retail and commercial lending | Yes (core offering) |
| Regional Rural Banks (RRBs) | 28 | 50% Central Govt, 15% State Govt, 35% Sponsor Bank | Priority sector agricultural lending | Limited (state-specific) |
| Small Finance Banks (SFBs) | 11 | Private financial institutional ownership | High-yield micro and retail lending | Yes (affordable housing) |
Home Loans From Government Banks: What Differs
As of 2026, the 12 public sector banks enforce zero prepayment penalties on floating-rate home loans for individual borrowers as per RBI guidelines.
| Feature / Parameter | Government Banks (PSBs) | Key Advantage for Borrowers |
|---|---|---|
| Prepayment & Foreclosure Charges | Nil (₹0) on floating rates | Zero charges for individual borrowers on floating-rate loans per RBI rules |
| Max Loan Tenure | Up to 30 years (or age 75) | Tenure extension up to age 75 for government and defense employees |
| Loan-to-Value (LTV) Ratio | RBI Master Circular on Housing Finance caps LTV ratios at 90% for loans up to ₹30 lakh, 80% for loans between ₹30 lakh and ₹75 lakh, and 75% for loans above ₹75 lakh | Up to 90% financing for loans up to ₹30 lakh |
| Overdraft Home Loan Facility | Available (e.g., SBI Maxgain) | Lower daily net interest through surplus deposits |
| Concession for Govt Employees | Dedicated schemes available | Dedicated options for central and state government staff |
Public sector banks base home loan pricing on the RBI repo rate through the External Benchmark Lending Rate (EBLR). For an illustrative home loan of ₹50 lakh over a 20-year tenure at an assumed rate of 8.50% p.a., the monthly EMI equals ₹43,391.
Government lenders process loans through strict legal and technical verification steps. These stringent checks reduce legal risks for property buyers across all 12 public sector institutions in India as of 2026.
How many government banks are there in India
India has 12 public sector banks operating as of 2026. This total count settled after 10 public sector banks merged into 4 anchor banks following the August 2019 government announcement.
State Bank of India operates as the largest public bank, managing over 22,000 branches nationwide as of 2026.
Which are all government banks in India
India has 12 Public Sector Banks (PSBs) operating as government banks following the mergers announced on August 30, 2019. State Bank of India (SBI) is the largest government lender, holding a total home loan portfolio market share of over 28% across India as of 2026.
| Bank Name | Headquarters | Established Year |
|---|---|---|
| State Bank of India (SBI) | Mumbai, Maharashtra | 1955 |
| Bank of Baroda | Vadodara, Gujarat | 1908 |
| Punjab National Bank (PNB) | New Delhi | 1894 |
| Canara Bank | Bengaluru, Karnataka | 1906 |
| Union Bank of India | Mumbai, Maharashtra | 1919 |
| Bank of India | Mumbai, Maharashtra | 1906 |
| Indian Bank | Chennai, Tamil Nadu | 1907 |
| Central Bank of India | Mumbai, Maharashtra | 1911 |
| Indian Overseas Bank (IOB) | Chennai, Tamil Nadu | 1937 |
| UCO Bank | Kolkata, West Bengal | 1943 |
| Bank of Maharashtra | Pune, Maharashtra | 1935 |
| Punjab & Sind Bank | New Delhi | 1908 |
RBI mandated that all new floating-rate retail and home loans be linked to an External Benchmark Rate (EBLR) effective 01 October 2019, which can be the RBI policy repo rate or GOI T-bill yields / FBIL benchmark rates, rather than specifically mandating RLLR alone. These 12 entities operate over 86,000 branches collectively across urban and rural locations in India as of 2026.
Key Takeaways
- India maintains 12 Public Sector Banks as of 2026, reduced from 27 banks after the 2019 consolidation.
Frequently Asked Questions (FAQs)
How many public sector banks are operating in India in 2026?
There are 12 public sector banks operating in India as of 2026 following major government consolidation rounds. SBI's FY2024–25 Annual Report states that SBI held a market share of 22.54% in deposits and 19.36% in advances as of March 31, 2025.
Which government bank offers the lowest home loan interest rate in 2026?
Public sector bank home loan interest rates connect directly to external benchmarks, such as the RBI repo rate. Actual interest rates vary across lenders based on individual credit profiles, loan amounts, and risk assessment.
Are home loan processing fees lower in public sector banks than private banks?
Public sector banks determine processing fees and administrative costs as disclosed in their sanction letters, with terms varying by institution and loan scheme.
What is the maximum home loan tenure offered by government banks?
Most public sector banks offer a maximum home loan repayment tenure of up to 30 years or until the borrower reaches 60 to 70 years of age. Lenders like Punjab National Bank and SBI structure these long tenures to reduce monthly EMI commitments for home buyers.
Do public sector banks charge prepayment penalties on floating rate home loans?
Public sector banks charge zero prepayment or foreclosure fees on floating-rate home loans in accordance with RBI mandates. Borrowers can make partial or full principal prepayments at any point during the tenure without extra charges.
What minimum CIBIL score is required for home loan approval from a PSB?
Government banks prefer a minimum CIBIL score of 750 to approve home loan applications. Borrowers with scores between 700 and 749 can still secure approval, though lenders may apply an additional credit risk premium based on their underwriting criteria.
Which public sector banks were combined during the major bank mergers?
The Central Government consolidated 10 public sector banks into 4 larger entities in April 2020, reducing total PSBs from 27 to 12. As part of this structure, Allahabad Bank merged into Indian Bank, while Syndicate Bank merged into Canara Bank.
