Public sector banks in India are government-owned commercial banks that form the backbone of India’s banking system, serving over a billion customers across urban and rural India.
The list of PSBs, their headquarters, taglines, and recent mergers is one of the most tested topics in Banking exams — IBPS PO/Clerk, SBI PO/Clerk, RBI Grade B, NABARD, and SSC CGL. India currently has 12 public sector banks after a major consolidation exercise that reduced PSBs from 27 in 2017 to 12 in 2020. This page gives you a complete, updated list with headquarters, taglines, and exam-critical merger facts.
⚡ Quick Facts
- India currently has 12 Public Sector Banks (PSBs) — reduced from 27 in 2017 through a series of mergers completed by April 2020.
- State Bank of India (SBI) is India’s largest bank by assets, branches, and deposits — also among the world’s top 50 banks by assets.
- Punjab National Bank (PNB) is India’s second largest public sector bank after the consolidation.
- The first bank nationalisation in India occurred on 19 July 1969 — when PM Indira Gandhi nationalised 14 major commercial banks.
- Bank of Baroda merger with Vijaya Bank and Dena Bank (1 April 2019) was India’s first three-way PSB merger.
Three “firsts” that are frequently confused: Bank of Calcutta (1806) is the oldest banking institution (SBI lineage) — but it was British-run. Punjab National Bank (1894) was the first bank established with Indian capital and management. Central Bank of India (1911) was the first truly Swadeshi bank. Also: SBI was not nationalised in 1969 — it was already a government bank since 1955. And the BoB+Vijaya+Dena merger was 1 April 2019 — all other 2020 mergers were 1 April 2020.
✅ My Progress Tracker
🏦 All 12 Public Sector Banks in India (2026)
| # ↕ | Bank Name ↕ | HQ ↕ | Est. ↕ | Tagline | Key Exam Fact |
|---|---|---|---|---|---|
| 1 | State Bank of India (SBI) | Mumbai, Maharashtra | 1955 (orig. 1806) | “The Banker to Every Indian” | Largest bank in India; 5 associate banks + Bharatiya Mahila Bank merged in 2017; headed by Chairman (not MD&CEO) |
| 2 | Punjab National Bank (PNB) | New Delhi | 1894 | “The Name You Can Bank Upon” | Second largest PSB by branches; Oriental Bank of Commerce + United Bank of India merged into PNB (1 Apr 2020) |
| 3 | Bank of Baroda (BoB) | Vadodara, Gujarat | 1908 | “India’s International Bank” | Second largest PSB by assets; Vijaya Bank + Dena Bank merged into BoB (1 Apr 2019) — first three-way PSB merger |
| 4 | Canara Bank | Bengaluru, Karnataka | 1906 | “Together We Can” | Syndicate Bank merged into Canara Bank (1 Apr 2020) |
| 5 | Union Bank of India | Mumbai, Maharashtra | 1919 | “Good People to Bank With” | Andhra Bank + Corporation Bank merged into Union Bank (1 Apr 2020) |
| 6 | Bank of India (BoI) | Mumbai, Maharashtra | 1906 | “Relationships Beyond Banking” | One of India’s oldest PSBs; not involved in the 2017–2020 consolidation mergers |
| 7 | Central Bank of India | Mumbai, Maharashtra | 1911 | “Central to You Since 1911” | India’s first truly Swadeshi bank — founded during the Swadeshi movement |
| 8 | Indian Overseas Bank (IOB) | Chennai, Tamil Nadu | 1937 | “Good People to Grow With” | Founded by M. Ct. M. Chidambaram Chettyar; specialises in foreign exchange |
| 9 | UCO Bank | Kolkata, West Bengal | 1943 | “Honours Your Trust” | United Commercial Bank; one of the older eastern India PSBs; only PSB HQ in Kolkata |
| 10 | Bank of Maharashtra | Pune, Maharashtra | 1935 | “Ek Parivar, Ek Bank” | Primarily serves Maharashtra; smallest PSB by balance sheet; HQ in Pune (not Mumbai) |
| 11 | Punjab & Sind Bank | New Delhi | 1908 | “Where Service is a Way of Life” | Primarily serves Punjab and North India; not involved in any of the 2017–2020 mergers |
| 12 | Indian Bank | Chennai, Tamil Nadu | 1907 | “Your Own Bank” | Allahabad Bank merged into Indian Bank (1 Apr 2020) |
🔀 Major PSB Mergers (2017–2020)
The most-tested cluster in banking exams — know the anchor bank, the banks merged into it, and the effective date.
| Anchor Bank (Surviving) | Banks Merged Into It | Effective Date |
|---|---|---|
| SBI | State Bank of Bikaner & 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 | Oriental Bank of Commerce + 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 |
Only BoB merger was in 2019. All other mergers (PNB, Canara, Union, Indian) were effective 1 April 2020. SBI’s merger was 1 April 2017.
📍 PSBs by Headquarters State
| State / City | PSBs Headquartered There | Count |
|---|---|---|
| Maharashtra — Mumbai | SBI, Bank of India, Union Bank of India, Central Bank of India | 4 |
| Maharashtra — Pune | Bank of Maharashtra | 1 |
| Gujarat — Vadodara | Bank of Baroda | 1 |
| Delhi | Punjab National Bank, Punjab & Sind Bank | 2 |
| Karnataka — Bengaluru | Canara Bank | 1 |
| Tamil Nadu — Chennai | Indian Bank, Indian Overseas Bank | 2 |
| West Bengal — Kolkata | UCO Bank | 1 |
⚖️ Compare Two PSBs
📝 Key Notes & Memory Tips
- First nationalisation: 19 July 1969 — 14 banks nationalised by PM Indira Gandhi under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1969
- Second nationalisation: 15 April 1980 — 6 more banks nationalised; total = 20 nationalised banks
- Objective: Direct credit to priority sectors — agriculture, small industry, weaker sections
- SBI was NOT nationalised in 1969 — it was already a government bank, formed from the Imperial Bank of India in 1955 under the SBI Act
- Established: 1 July 1955 (as SBI, under SBI Act 1955)
- Origin chain: Bank of Calcutta (1806) + Bank of Bombay (1840) + Bank of Madras (1843) → Imperial Bank of India (1921) → SBI (1955)
- Headquarters: State Bank Bhavan, Nariman Point, Mumbai
- Head: Chairman (not MD & CEO — SBI’s unique governance structure)
- Five associate banks merged 1 April 2017: SB of Bikaner & Jaipur, SB of Hyderabad, SB of Mysore, SB of Patiala, SB of Travancore (+ Bharatiya Mahila Bank)
- World rank: Among top 50 banks globally by total assets
India had 27 PSBs in 2017. Through 6 rounds of mergers, the number reduced to 12 by April 2020. The government’s rationale: fewer but stronger banks with better capital adequacy, technology, and global competitiveness. Timeline: SBI + 5 associates (2017) → BoB + Vijaya + Dena (2019) → 4 mergers effective 1 April 2020 (PNB+OBC+UBI; Canara+Syndicate; Union+Andhra+Corp; Indian+Allahabad).
- PSBs: Government holds majority stake (≥51%); 12 banks; regulated by RBI + Finance Ministry
- Private Banks: HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra, IndusInd — privately owned; RBI regulated
- Small Finance Banks: Serve underbanked segments; RBI licensed; AU Small Finance Bank, Equitas, Ujjivan
- Payments Banks: Limited licence — accept deposits up to ₹2 lakh, cannot lend; Airtel Payments Bank, India Post Payments Bank (Paytm Payments Bank licence cancelled by RBI in 2024)
Central Bank of India (1911) = First truly Swadeshi bank — founded during the Swadeshi movement. Punjab National Bank (1894) = First bank established with Indian capital and management (Lala Lajpat Rai and others). Bank of Calcutta (1806) = Oldest banking institution in India — but British-founded; its lineage leads to SBI. These three distinctions are frequently confused in competitive exams.
6 Anchor Banks Merger Mnemonic:
“SBI eats 5 + Bharat | BoB eats Vijaya & Dena | PNB eats OBC & United | Canara eats Syndicate | Union eats Andhra & Corp | Indian eats Allahabad”
Short form: SBI–BoB–PNB–Canara–Union–Indian (the 6 anchor banks)
Nationalisation Dates:
“Indira 69 nationalised 14; Indira 80 nationalised 6”
1969 = 14 banks | 1980 = 6 more banks | Total = 20 nationalised banks
🃏 Flashcards
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🧩 Practice Quiz
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India currently has 12 Public Sector Banks. The number was reduced from 27 in 2017 to 12 by April 2020 through government-mandated mergers. The last major round of mergers was effective 1 April 2020, which consolidated 10 PSBs into 4 anchor banks (PNB, Canara, Union Bank, Indian Bank).
The first bank nationalisation in India took place on 19 July 1969, when PM Indira Gandhi nationalised 14 major commercial banks under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1969. The goal was to direct credit to priority sectors — agriculture, small industries, and weaker sections. Six more banks were nationalised in 1980, bringing the total to 20.
The merger of Bank of Baroda, Vijaya Bank, and Dena Bank was the first major three-way PSB merger in India’s banking history, effective 1 April 2019. Bank of Baroda was the anchor bank. All other major mergers — PNB+OBC+UBI; Canara+Syndicate; Union+Andhra+Corp; Indian+Allahabad — were effective 1 April 2020.
Bank of Baroda is headquartered in Vadodara (Baroda), Gujarat. Its tagline is “India’s International Bank” — reflecting its extensive international presence across 17+ countries. It is India’s second largest PSB by assets after SBI, and became the anchor bank in the first three-way PSB merger (with Vijaya Bank and Dena Bank) in 2019.
SBI was formed from the Imperial Bank of India in 1955 under the State Bank of India Act, 1955. The Imperial Bank of India (1921) was itself formed from the merger of three Presidency Banks — Bank of Calcutta (1806), Bank of Bombay (1840), and Bank of Madras (1843). This makes SBI’s lineage trace back to 1806 — the oldest banking institution in India.
✅ Key Takeaways
❓ Frequently Asked Questions
India has 12 Public Sector Banks (PSBs) as of 2026 — significantly fewer than the 27 PSBs in 2017. The Government undertook a major consolidation between 2017 and 2020: SBI absorbed its five associate banks and Bharatiya Mahila Bank (April 2017), Bank of Baroda merged with Vijaya Bank and Dena Bank (April 2019), and four further mergers took effect in April 2020 — PNB absorbing OBC and United Bank, Canara Bank absorbing Syndicate Bank, Union Bank absorbing Andhra Bank and Corporation Bank, and Indian Bank absorbing Allahabad Bank.
The nationalisation of 14 commercial banks on 19 July 1969 by PM Indira Gandhi was one of the most consequential economic decisions in India’s history. The stated objective was to direct bank credit toward priority sectors — agriculture, small industries, and economically weaker sections — rather than serving only urban corporate borrowers. The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1969 provided the legal basis. A second round on 15 April 1980 nationalised 6 more banks, bringing the total to 20. Nationalisation dramatically expanded India’s banking network into rural areas, though it also created structural inefficiencies that took decades to reform.
PSBs are banks where the government holds at least 51% stake — the 12 PSBs including SBI, PNB, and Bank of Baroda. Private Banks are fully privately owned and RBI-regulated — HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank are major examples. Small Finance Banks have a restricted banking licence focused on underbanked segments — AU Small Finance Bank, Equitas, and Ujjivan are examples. Payments Banks have the most restricted licence — they can accept deposits up to ₹2 lakh per customer and provide payment services but cannot lend money. Examples include Airtel Payments Bank and India Post Payments Bank (Paytm Payments Bank’s licence was cancelled by RBI in 2024).
PSB knowledge is tested in virtually every banking exam — IBPS PO/Clerk, SBI PO/Clerk, RBI Grade B, NABARD, SEBI, LIC AAO, and SSC CGL. Key tested facts include the current count (12 PSBs), the 2017–2020 merger history (which bank merged into which anchor bank), the first bank nationalisation (19 July 1969, 14 banks, Indira Gandhi), SBI’s lineage (Bank of Calcutta 1806 → Imperial Bank 1921 → SBI 1955), headquarters and taglines — especially non-Mumbai HQs (Bank of Baroda in Vadodara, Canara Bank in Bengaluru, PNB and Punjab & Sind Bank in Delhi, Indian Bank and IOB in Chennai, UCO Bank in Kolkata), and the three “first bank” distinctions (first Swadeshi: Central Bank 1911; first Indian-managed: PNB 1894; oldest lineage: Bank of Calcutta 1806).
