The institution of banking is the most important financial institution in the world. The banking system has made it simple to do any financial transaction without experiencing significant difficulty. Bank accounts make it easy to save money, borrow money, and move money between people. On the other hand, banks do not all operate in the same manner. In the eyes of those who work in banks, there are two distinct types of financial institutions. Including public and private sector banks, this category includes all financial institutions. Even though both kinds of banks provide comparable services to the general public, there are some significant differences between them. What is a public sector bank, and how does it operate? And how does it function? Let’s have a look and see.
These are the banks that the federal government owns at any particular moment. The government of a country owns controlling ownership in these financial institutions, accounting for more than 51 percent of their total assets. Please see below for the most recent list of Top 10 Government Banks in India! The general people in India have access to commercial banks, government banks, and private banks. The following section will find a comprehensive list of all government-owned banks in India.
List of the Top 10 Government Banks in India as of 2022
1. State Bank of India (SBI)
The State Bank of India (SBI) is India’s largest public sector bank, accounting for 23 percent of the nation’s total market assets. In addition, SBI has a quarter of the total loans and deposits in the current financial market.
2. Punjab Nation Bank
PNB, India’s second-biggest bank, now has a total asset base of more than INR 8 trillion, making it its most prominent public sector bank. Customers of Punjab National Bank have access to a diverse range of cutting-edge goods.
3. Union Bank of India
Union Bank of India has had a strong year in terms of financial performance throughout the last year. The merger of Andhra Bank and Corporation Bank resulted in a total business of INR 14.59 trillion, increasing the previous total of INR 14.59 trillion.
4. Canara Bank
Following the recent merger with Syndicate Bank, Canara Bank has risen to India’s fourth-largest public sector bank. It has a lengthy and storied history as one of India’s oldest public sector banks.
5. Bank of Baroda
Too far, it has serviced more than 127 million individuals in 21 countries, and its user base is growing at a rapid pace, according to the company.
6. Bank of India
The Bank of India was established in 1906 and evolved into a wholly-owned government enterprise.
7. Indian Bank
A public sector bank, Indian Bank ranks eighth among India’s financial institutions. Following the recent merger with Allahabad Bank, Indian Bank has consolidated its position in the financial marketplace.
8. Central Bank of India
Thanks to the Central Bank’s extensive branch network, it is feasible to conduct business in all 29 Indian states and six of India’s seven union territories. This bank was the first commercial bank in India to be owned and controlled solely by Indians is equally noteworthy.
9. Indian Overseas Bank
The outstanding financial services and trust that Indian Overseas Bank provides to its customers have earned its significance in the financial services industry. In 1932, a bank called Indian Overseas set out to construct and expand a global network of foreign exchange firms. This was one of the bank’s primary objectives when it was founded.
10. Bank of Maharashtra
The Bank of Maharashtra is considered one of the most significant public sector banks in India. Focusing on both technology and its customers, the Bank of Maharashtra held to its tagline, “One Family, One Bank,” in its 10th anniversary year.
How does it work?
A public sector bank is a financial institution where the government owns at least half of the stock. Financial guidelines for these organizations are subject to government oversight. Because the government owns public sector banks, most depositors believe that their money is better protected in these institutions. A large number of people bank with financial institutions in the public sector.
SBI is India’s largest public sector bank by far in terms of assets. The Indian stock exchange currently trades a significant chunk of the remaining shares in the company.
Employees at public sector banks feel safer than their counterparts at private sector banks. In addition, they can get a lot of benefits, like a pension when they’re old enough. Consequently, public sector banks have far more loan defaulters than private sector banks. The promotion process at public sector banks is based on seniority, which has a demoralizing effect on many people there.
Many people say that customers at public sector banks don’t get as much attention as they do at private sector banks. The result is that public sector banks get a lot of complaints from clients who aren’t happy with the service they get. They also charge more interest to people who use public sector banks instead of private sector banks.
The benefits of having a public bank
It is good to have a bank that the government owns. Consumers get a lot of benefits from Top 10 Government Banks in India.
- The best thing to do is make a deposit that pays a high-interest rate.
- These are low-interest loans. They have a low-interest rate.
- Employees will keep their jobs until the end of time, even if they leave their jobs.
- Offer a wide range of services to many customers.
- Make sure that the country’s rural areas get their help.
- Offer financial services through a network of branch offices and banks.
A lot of things can go wrong with public sector banks.
Public banks face many problems around the world, and they aren’t just in the one country. Because of these problems, their public image has been damaged a lot. Banks that the government runs have several issues, the most important of which are as follows:
- There is a lot of bureaucracy at the management level.
- The inability to make a significant financial decision in a short amount of time.
- Give your customers less personalized service.
- There have been a lot of complaints about the poor service workers have given in the past.
- In most public-sector banks, there is a lot of corruption.
- The percentage of customers who don’t pay is very high.
- Public-sector banks spend a lot of money on their financial operations.
Hope this article will help you to understand Top 10 Government Banks in India 2022.