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The Government of India holds significant ownership in several public sector banks (PSBs). These banks play a major role in India’s financial system by providing loans, supporting economic development, and expanding banking services across the country.
Government shareholding means the percentage of ownership the government holds in a bank’s equity capital. This ownership allows the government to maintain control over the management and policies of public sector banks.
Minimum Government Ownership Rule in Banks
According to banking regulations in India:
- The Government must maintain at least 51% shareholding in public sector banks.
- If the government reduces its stake below this level, the bank may lose its status as a public sector bank.
Nationalized Banks (Public Sector Banks) Government Shareholding % (as of December 2025)
| Bank Name | Govt Stake (Dec 25) | Govt Stake (June 24) |
|---|---|---|
| State Bank of India | 55.50% | 57.54% |
| Canara Bank | 62.93% | 62.93% |
| Bank of Baroda | 63.97% | 63.97% |
| Punjab National Bank | 70.08% | 70.08% |
| Bank of India | 73.38% | 73.38 |
| Indian Bank | 73.84% | 73.84% |
| Union Bank of India | 74.76% | 74.76% |
| Bank of Maharashtra | 73.60% | 86.46% |
| UCO Bank | 90.95% | 95.39% |
| Central Bank of India | 89.27% | 93.08% |
| Indian Overseas Bank | 92.44% | 96.38% |
| Punjab & Sind Bank | 93.85% | 98.25 |
Regional Rural Banks (RRBs)
Regional Rural Banks (RRBs) are government owned scheduled commercial banks of India that operate in different states of India. These banks are under the ownership of the Ministry of Finance, Government of India, Sponsored Bank and concerned State Government in the ratio of 50:35:15 respectively. They were created to serve rural areas with basic banking and financial services.
