P ublic 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.
Here are all the public sector banks in India, with market cap data (as of August 22, 2024) sourced from BSE India.
| 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 |
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.
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.
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.
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.
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.
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.
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.
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.
