Public 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.
SBI, established in 1955, is the largest public sector banks in India. It is a prominent figure in the nation's financial sector. With an extensive array of banking and financial services, it caters to millions of domestic and international clients. In the first quarter of the 2023-24 fiscal year, SBI surpassed Reliance Industries to become India's most profitable corporation.
Bank of Baroda
CEO: Debadatta Chand
Revenue FY 22-23 (Cr.): 89,588.54
Bank of Baroda (BoB), founded in 1908, ranks second among India's top 10 public sector banks. BoB offers a comprehensive range of financial services domestically and globally and is renowned for its robust presence and unwavering commitment to customer satisfaction. Notably, BoB has made history with the first-ever three-way merger alongside Dena Bank and Vijaya Bank. Recent filings reveal that BoB achieved a net profit of Rs4,070.1 crores in the April-June quarter of FY 2023-24, marking an impressive 88.7 percent increase compared to the corresponding quarter in the previous fiscal year.
Punjab National Bank
CEO: Atul Kumar Goel
Revenue FY 22-23 (Cr.): 85,144.11
Punjab National Bank (PNB), founded in 1894, ranks third among India's top 10 public sector banks. With its headquarters in New Delhi, the bank boasts an extensive customer base exceeding 180 million. Freedom fighter Lala Lajpat Rai was a founding member and pivotal in the bank's early management.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.
Union Bank of India
CEO: A. Manimekhalai
Revenue FY 22-23 (Cr.): 80,743.34
Union Bank of India, the fourth largest public sector bank in India, was established in 1919, and boasts a substantial nationwide presence. Mahatma Gandhi inaugurated the Union Bank of India's office upon its establishment. Subsequently, in 1969, the bank underwent nationalisation, joining forces with 14 other banks to pool their resources and funds for the country's progress.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.
Indian Overseas Bank
CEO: Ajay Kumar Srivastava
Revenue FY 22-23 (Cr.): 19,400.33
Indian Overseas Bank (IOB), a prominent public sector bank in India founded in 1937, is headquartered in Chennai, Tamil Nadu. Beyond its domestic operations, IOB has extended its presence internationally. Indian Overseas Bank has reported a 28 percent increase in net profit in the past year, reaching Rs500 crores. This notable growth is attributed to healthy loan growth and interest income.
CEO: K. Satyanarayana Raju
Revenue FY 22-23 (Cr.): 84,424.78
Canara Bank was founded in 1906. With its headquarters in Bengaluru, Karnataka, the bank boasts a rich and illustrious legacy of catering to the financial requirements of numerous patrons. Canara Bank has raised Rs5,000 crore by issuing Long Term Infrastructure Bond, Series I Bonds in the fiscal year 2022-23. These bonds carry a coupon rate of 7.54 percent per annum. The issuance received strong investor interest, with bids totalling over Rs14,180 crores, surpassing the base issue size of Rs1,000 crores, and including a green shoe option of Rs4,000 crores.
CEO: Shanti Lal Jain
Revenue FY 22-23 (Cr.): 44,942.21
Indian Bank, established in 1907, is headquartered in Chennai, Tamil Nadu. With a rich legacy and a widespread national presence, Indian Bank is committed to offering innovative banking solutions and customer-centric services.
CEO: Ashwani Kumar
Revenue FY 22-23 (Cr.): 17,650.51
UCO Bank was founded in 1943. The bank maintains a substantial national presence in Kolkata, West Bengal. UCO Bank prioritises maintaining trust and delivering dependable banking services to address financial requirements, thus contributing to the nation's economic advancement and well-being.UCO Bank has reported a significant 80 percent increase in net profit, reaching Rs223 crore for the April-June 2023 quarter. The bank also saw an increase in total income for the first quarter of the current fiscal year, rising to Rs5,857 crore from Rs3,797 crore.
Central Bank of India
CEO: Matam Venkata Rao
Revenue FY 22-23 (Cr.): 25,541.89
Founded in 1911, the Central Bank of India stands among India's top 10 public sector banks. The bank has recently reported a notable increase in net profit, reaching Rs418.4 crore for the April-June 2023 quarter, compared to Rs235 crore in the same period the previous year. The bank also saw a significant reduction in gross and net NPAs in absolute terms compared to last year.
Bank of India
CEO: Rajneesh Karnatak
Revenue FY 22-23 (Cr.): 47,647.72
Established in 1906, the Bank of India (BoI) is among India's oldest public sector banks. BoI, headquartered in Mumbai, Maharashtra, boasts a storied history and an extensive branch network nationwide. The bank aims to stimulate economic development through various financial offerings and services.Bank of India has reported a significant increase in net profit to Rs1,551 crore for the June 2023 quarter. This surge is attributed to reduced bad loans and higher margins resulting from the repricing of existing assets. Note: The aforementioned revenue data for FY 22-23 is sourced from BSE India.