Government Penny Stocks in India for 2025
Posted by : sachet | Thu Mar 13 2025

Government penny stocks are the low-priced equities of government companies in India. Those looking to make a diversified investment portfolio with lower risk can consider these stocks as a stepping stone to building wealth. Explore the government penny stocks list in India to invest in 2025. Scroll down to explore more government penny stocks below 100 Rs or abbreviate them with PSU penny stocks.
Government Penny Stocks List for 2025 By Market Capitalisation
Here is the top government penny stocks list to consider in 2025 for better returns.
Stock Names | CMP (in Rs) | Market Capitalisation (in Rs) | 52-Week High (in Rs) | 52-Week Low (in Rs) | Debt-to-Equity Ratio | Returns on Equity | Face Value (in Rs) | 3-Year Returns (in %) |
Punjab National Bank Ltd. | 86.55 | 99,740.00 | 142.90 | 85.46 | 0.76 | 13.70% | 2 | 138.60% |
Indian Overseas Bank Ltd. | 42.16 | 79,690.00 | 75.55 | 40.52 | 1.10 | 11.88% | 10 | 127.80% |
NHPC Ltd. | 76.91 | 77,260.00 | 118.40 | 71.00 | 0.85 | 7.39% | 10 | 169.49% |
Canara Bank Ltd. | 82.22 | 74,580.00 | 128.90 | 78.60 | 0.62 | 17.35% | 2 | 88.53% |
NDMC Ltd. | 64.01 | 56,280.00 | 95.45 | 59.70 | 0.15 | 21.43% | 1 | 21.53% |
Central Bank of India Ltd. | 41.84 | 36,350.00 | 73.00 | 41.06 | 0.61 | 12.08% | 10 | 121.48% |
Bank of Maharashtra Ltd. | 46.95 | 36,110.00 | 73.50 | 43.67 | 0.45 | 20.03% | 10 | 157.02% |
NBCC Ltd. | 77.91 | 21,040.00 | 139.83 | 70.07 | 0.00 | 23.85% | 1 | 194.30% |
Mahanagar Telephone Nigam Ltd. | 40.81 | 2,530.00 | 101.93 | 31.20 | -1.23 | 13.00% | 10 | 68.46% |
Andrew Yule & Company Ltd. | 27.33 | 1,340.00 | 65.65 | 25.80 | 0.33 | -6.27% | 2 | 28.36% |
*Data is updated as of 12th March 2025.
Disclaimer: Please be aware that investing in penny stocks or government penny stocks or PSU penny stocks comes with inherent risks due to volatile market conditions and low liquidity. It is recommended to conduct your own research on the government penny stocks list to make an informed investment decision on government company penny stocks.
Overview of Government Penny Stocks
- Punjab National Bank Ltd.
Founded: 1894
Headquarters: Dwarka, Delhi
Market Capitalisation: Rs 99,740.00 crore
Punjab National Bank Ltd. is a government-owned bank in India, with 180+ million customers. It has 12,248 branches and 13,000+ ATMs to serve the customer with a better quality of service. As per the Wikipedia, product portfolio of PNB includes corporate banking, investment banking, wealth management, private banking, asset management, credit cards, insurance, mortgage loans, and retail banking. PNB is recognised as one of the most popular among the top government penny stocks list to buy in 2025. It has high market share after SBI Bank Ltd. and may deliver sustainable returns over the long-term.
- Indian Overseas Bank Ltd.
Founded: 1937
Headquarters: Chennai, Tamil Nadu
Market Capitalisation: Rs 79,690.00 crore
Indian Overseas Bank Ltd., another public sector undertaking PSU penny stock, belongs to the organisation owned and administered by the government of India. It offers a varied range of services such as consumer banking, retail banking, housing loan, vehicle loan, investment banking, merchant banking, wealth management, and more. It operates with 21,800+ employees to serve its customers with the quality of service. With 3,265+ branches in India, IOB is categorised under the top government penny stocks list in India for 2025.
- NHPC Ltd.
Founded: 1975
Headquarters: Mumbai, Maharashtra
Market Capitalisation: Rs 77,260.00 crore
NHPC Ltd. is a government-owned energy company engaged in developing and integrating hydroelectric power. As reported by Mr. Rajendra Prasad Goyal, chairman and MD of NHPC Ltd, the company’s goal is to double its installed capacity by the Financial Year 2025-26. So far, NHPC has been considered one of the top government penny stocks in India to buy now in 2025. Moreover, it has encouraged most investors by declaring high dividend payouts of 2.48%.
- Canara Bank Ltd.
Founded: 1906
Headquarters: Bengaluru, India
Market Capitalisation: Rs 74,580.00 crore
Canara Bank Ltd. is a public sector undertaking owned and operated under the administration of the Government of India. With the help of 9,723+ branched and 13,420+ ATMs, Canara Bank has established its footprints across the country. This PSU bank’s product portfolio includes retail banking, corporate banking, mortgage loans, private banking, wealth management, investment management, credit cards, insurance, and investment banking. Canara Bank Ltd. holds significant popularity among multiple options in the top government penny stocks list for 2025.
- NDMC Ltd.
Founded: 1958
Headquarters: Hyderabad, Telangana
Market Capitalisation: Rs 56,280.00 crore
NDMC, or National Mineral Development Corporation Ltd., is engaged in exploring iron ore, copper, diamonds, coal, beach sands, and graphite. It is also diversified into other raw materials (Silica Limestone) for the steel sector. Being India’s largest iron ore producer and one of the top government penny stocks in India, As per the NDMC’s management, NDMC produced over 45 million tonnes of iron ore in Chhattisgarh and Karnataka. Brokers and investors have a positive outlook for NDMC’s stock prices because of its potential to grow in the long-term.
- Central Bank of India Ltd.
Founded: 1911
Headquarters: Mumbai, Maharashtra
Market Capitalisation: Rs 36,350.00 crore
Central Bank of India Ltd. is another PSU bank in India listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). With over 31,500 employees, Central Bank offers banking and financial solutions to its customers. Investors recognise the Central Bank of India Ltd. as the best among the top government penny stocks list to invest in 2025. Apart from this, Central Bank of India Ltd. delivered 219.46% returns in the past 5 years.
- Bank of Maharashtra Ltd.
Founded: 1935
Headquarters: Pune, Maharashtra
Market Capitalisation: Rs 36,110.00 crore
Bank of Maharashtra Ltd. is a PSU bank in India administered by the Ministry of Finance. It serves 35 million customers with 2,500 branches nationwide. With the largest network of branches of any nationalised bank in Maharashtra, it offers banking and financial solutions to the citizens. Bank of Maharashtra Ltd. is added to the top government penny stocks list because of its high market capitalisation and strong fundamentals. This is one of the best performing government penny stocks may deliver exponential returns over the period of time.
- NBCC Ltd.
Founded: 1960
Headquarters: New Delhi, India
Market Capitalisation: Rs 21,040.00 crore
NBCC, or National Buildings Construction Corporation Ltd., is an Indian public-sector undertaking administered by the Ministry of Housing and Urban Affairs. It has a 100% stake in Mini Ratna Hospital Consultancy Corporation Limited (HSCC). With 31 regional offices in India, NBCC has robust domestic footprints. But the things do not end here, it also operates in the foreign countries such as Nepal, Mauritius, Turkey, Botswana, Maldives, Oman, Dubai, Africa, etc. Have a look at the fundamentals of NBCC, one of the best performing government penny stocks in India in 2025.
- Mahanagar Telephone Nigam Ltd.
Founded: 1986
Headquarters: New Delhi, India
Market Capitalisation: Rs 2,530.00 crore
Mahanagar Telephone Nigam Ltd. (MTNL) is the government-owned enterprise offering FTTH, mobile telephony, IPTV, broadband, wired and wireless, and digital television services. It is operating in the telecommunication sector with 2+ million subscribers. Moreover, MTNL also offers services on GSM and CDMA platforms. Brokers and investors added MTNL in the top government penny stocks list to diversify their investment portfolio for the sustainable returns.
- Andrew Yule & Company Ltd.
Founded: 1863
Headquarters: Kolkata, West Bengal
Market Capitalisation: Rs 1,340.00 crore
Andrew Yule & Company Ltd. is an Indian public sector undertaking owned by the government of India and administered under the Ministry of Heavy Industries. With end-to-end engineering solutions, Andrew Yule & Company Ltd. gained investors’ attention toward one of the top government penny stocks.
What are Government Penny Stocks?

Government penny stocks refer to the low-priced equities of government companies available with lower risks and high growth potential. Investing in low-priced government stocks might help you build wealth quickly as they could become multibaggers in the coming decades. Best performing government penny stocks can also provide your portfolio with some extra plus points. These may include preserved capital, government support, and adequate cash flow.
The top government penny stocks in India to invest in 2025 are Punjab National Bank, Indian Overseas Bank, NHPC, Canara Bank, NDMC, Central Bank of India, Bank of Maharashtra, and more. Exploration of the government penny stocks list could take you to new heights in generating returns in the long term.
Benefits of Government Penny Stocks
- Robust Growth Potential
Government penny stocks comes with high growth potential because of effective level of cash flow and accessible funding measures. They belongs to the government companies that can manage the funds easily at low cost. High growth potential in the stocks among top government penny stocks list may increase the stock prices significantly.
- Diversification
Best performing government penny stocks could diversify your investment portfolio. They can deliver quick returns because of their multibagger behaviour to set off the previous losses. And we all know that having a diversified investment portfolio could be the key to succeeding in the stock market.
- Dividend Yield
Government penny stocks not only appreciate capital but also provides investors with the dividend payouts to build their wealth. Add the high dividend paying stocks from the top government penny stocks list such as Canara Bank Ltd., Bank of Maharashtra Ltd., NHPC Ltd., NDMC Ltd., Punjab National Bank Ltd., and more.
- Government Support
Investing in the top government companies in India might take you to the milestone of earning sustainable returns over the long-term. Thus, the best performing government penny stocks in your portfolio may add an extensive support of government and could help you make balanced returns.
- Lower Risk
Adequate cash flow, flexible funding channels, and extensive government support make the government penny stocks list less risky. You can add the low-priced government stocks in your portfolio to lower the risk of significant losses.
Factors Affecting Government Penny Stocks

Explore the factors that may affect the top government penny stocks list in the coming decades.
- Regulatory Frameworks
India’s regulatory environment is highly dynamic. And for government penny stocks a small change in rules and regulations may impact the stock price significantly. While exploring the top government penny stocks list, consider the government companies complying with all the regulatory amendments.
- Financial Health
Assess the financial records of the company and track the previous data to forecast the financial performance of the company in the coming years. Rise or decline in financial performance of the company may impact the stock prices significantly.
- Market Demand/Supply
Fluctuations in demand and supply could leverage volatility in the government penny stocks in India. Choose the fundamentally strong stocks from the top government penny stocks list that are consistently meeting demand/supply requirements to earn higher returns.
- Macroeconomic Events
Trends like inflation, war, recession, etc. could impact the whole stock market significantly. This means that government penny stocks may be affected due to such circumstances.
Government Penny Stocks List Based on 5-Year Returns
Explore the top government penny stocks list based on 5-Year returns.
Stock Names | CMP (in Rs) | Market Capitalisation (in cr.) | 5-Year Returns |
NBCC Ltd. | 77.91 | 21,040.00 | 572.09% |
Mahanagar Telephone Nigam Ltd. | 40.81 | 2,530.00 | 509.47% |
Bank of Maharashtra Ltd. | 46.95 | 36,110.00 | 360.99% |
Canara Bank Ltd. | 82.22 | 74,580.00 | 280.79% |
Central Bank of India Ltd. | 41.84 | 36,350.00 | 219.46% |
*Data is updated as of 12th March 2025.
Government Penny Stocks List With P/E Ratio
Explore the top government penny stocks list with their P/E ratio.
Stock Names | CMP (in Rs) | Market Capitalisation (in cr.) | P/E Ratio |
NDMC Ltd. | 64.01 | 56,280.00 | 8.85 |
Bank of Maharashtra Ltd. | 46.95 | 36,110.00 | 6.68 |
NBCC Ltd. | 77.91 | 21,040.00 | 42.41 |
Central Bank of India Ltd. | 41.84 | 36,350.00 | 10.04 |
Canara Bank Ltd. | 82.22 | 74,580.00 | 4.60 |
*Data is updated as of 12th March 2025.
Government Penny Stocks List With Dividend Yields
Here is the top government penny stocks list with dividend yield.
Stock Names | CMP (in Rs) | Market Capitalisation (in cr.) | Dividend Yield |
Canara Bank Ltd. | 82.22 | 74,580.00 | 3.87% |
Bank of Maharashtra Ltd. | 46.95 | 36,110.00 | 2.74% |
NHPC Ltd. | 76.91 | 77,260.00 | 2.48% |
Punjab National Bank Ltd. | 86.55 | 99,740.00 | 1.63% |
NDMC Ltd. | 64.01 | 56,280.00 | 3.71% |
*Data is updated as of 12th March 2025.
Government Penny Stocks List With 5-Year CAGR
Look at the top government penny stocks list with their 5-Year CAGR (Compound Annual Growth Rate).
Stock Names | CMP (in Rs) | Market Capitalisation (in cr.) | 5-Year CAGR |
Canara Bank Ltd. | 82.22 | 74,580.00 | 90.80% |
Indian Overseas Bank Ltd. | 42.16 | 79,690.00 | 32.39% |
Punjab National Bank Ltd. | 86.55 | 99,740.00 | 24.20% |
Bank of Maharashtra Ltd. | 46.95 | 36,110.00 | 23.30% |
Central Bank of India Ltd. | 41.84 | 36,350.00 | 9.97% |
*Data is updated as of 12th March 2025.
Disclaimer: Please be aware that investing in penny stocks or government penny stocks or PSU penny stocks comes with inherent risks due to volatile market conditions and low liquidity. It is recommended to conduct your own research on the government penny stocks list to make an informed investment decision on government company penny stocks.
How to Pick the Top Government Penny Stocks?
Here is how to pick from the top government penny stocks list. Explore the step-by-step guide.
- Affordable Prices
Penny stocks are available with low prices. Likewise, best performing government penny stocks also come with affordability so as to help small investors. Ensure the stocks you’re going to select have low market price and strong fundamentals. One can explore the top government penny stocks list to invest a small capital amount.
- Dividend Payouts
Check whether the chosen government penny stocks pays dividends or not. Investing in high dividend paying government company penny stocks could be a stepping stone for the investors to beat inflation. They can provide the portion of profitability in the form of dividend to their investors.
- Sectorial Dominance
Government company penny stocks belong to the organisations operating across all the sectors. Have a look at the top government penny stocks list and invest in the companies operating in the dominant industries like solar energy, power generation, infrastructure, etc.
- Backed By Government
Select the government company penny stocks with extensive government support to have a safe and diversified investment portfolio. Research the top government penny stocks list to select the best stocks for short-term and long-term returns.
Risks in Government Penny Stocks List | Know How to Mitigate Them

Government penny stocks often deliver multibagger returns, but also come with some of the associated risks. Here are the major risks in the top government penny stocks list that are essential to be examined.
- Low Volatility
It is possible that government penny stocks may suffer low volatility in the coming decades. And, it would likely impact stock prices negatively and may incur loss for the investors. This happens due to decline in capital availability and economic slowdowns.
Mitigation Strategy: Choose the popular stocks from top government penny stocks list to avoid losses in the case of low volatile market situations.
- Low Volume
Sometimes, investors may not be willing to invest in government company penny stocks which may decrease the overall volume. And low volume in the best performing government penny stocks may result in a significant price decline over the specific period of time.
Mitigation Strategy:
- Pump-and-Dump
Government company penny stocks come with low prices and are accessible for unsuspecting investors to pump and dump these government shares. They can buy large number of shares of the best performing government penny stocks and hold them to manipulate the prices.
Mitigation Strategy: Beware of such scams in the top government penny stocks list and select the stocks with a clean chit record in being such fraudulent practices.
Who can Pick From Government Penny Stocks List?
Here is the list of investors who can pick from the top government penny stocks list.
- Small Investors
Small investors having low capital to invest in the stock market can consider investing in government penny stocks in India. These stocks are affordable to buy and they can get large number of shares with small amount. Best performing government company penny stocks might prove to be the most potential option for the small investors.
- Portfolio Diversifier
Investors looking for the alternatives to diversify their investment portfolios, an consider the top government penny stocks list. Low-priced government stocks often come with high growth potential to set off the previous losses of investors.
- Wealth Seeker
If you are an investor and seeking the best wealth generation opportunities, the government penny stocks list could help you. These stocks may deliver exponential returns over the longer time period to increase the wealth of several investors.
- Long-Term Investors
For those with high patience and who can wait for a longer time period, consider government penny stocks in India. Government company penny stocks tend to deliver sustainable returns in the long term.
- Risk Tolerant Investors
The best performing government company penny stocks come with multiple associated risks. Invest in the top government penny stocks list to lower risk in your investment portfolio.
How to Invest in Government Penny Stocks?

Here is the step-by-step guide to invest in the best performing government penny stocks in 2025.
- Step 1: Research PSU penny stocks or top government penny stocks list with their financial and fundamentals.
- Step 2: Select the top government-backed penny stocks to diversify your investment portfolio.
- Step 3: Open a demat account on Univest, navigate to the search section and look for the selected stocks.
- Step 4: Place a buy order for the best performing government penny stocks and execute it to invest successfully.
- Step 5: Track your returns in the portfolio section and wait for the right time to book returns.
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Key Takeaways
- Government penny stocks come with strong fundamentals, government support, and effective cash flow to show robust growth.
- Investing in the government-backed penny stocks can help individual diversify their portfolios and generate sustainable returns.
- Top government company penny stocks like Canara Bank, NHPC, PNB, NDMC, etc. provide high dividend yield.
- Investors should consider several factors affecting the best performing government penny stocks such as regulatory changes, market trends, and macroeconomic events.
- Small investors, long-term investors, and risk takers can get the benefit from the best performing government penny stocks list.
By exploring these key aspects, investors can make an informed investment decision on government penny stocks list in India for 2025.
FAQs on Government Penny Stocks List
1. Which government penny stocks to buy?
Ans. Here is the top government penny stocks list to buy now in 2025.
Stock Names | CMP (in Rs) | Market Capitalisation (in Rs) | 52-Week High (in Rs) | 52-Week Low (in Rs) | Debt-to-Equity Ratio | Returns on Equity | Face Value (in Rs) | 3-Year Returns (in %) |
Punjab National Bank Ltd. | 86.55 | 99,740.00 | 142.90 | 85.46 | 0.76 | 13.70% | 2 | 138.60% |
Indian Overseas Bank Ltd. | 42.16 | 79,690.00 | 75.55 | 40.52 | 1.10 | 11.88% | 10 | 127.80% |
NHPC Ltd. | 76.91 | 77,260.00 | 118.40 | 71.00 | 0.85 | 7.39% | 10 | 169.49% |
Canara Bank Ltd. | 82.22 | 74,580.00 | 128.90 | 78.60 | 0.62 | 17.35% | 2 | 88.53% |
NDMC Ltd. | 64.01 | 56,280.00 | 95.45 | 59.70 | 0.15 | 21.43% | 1 | 21.53% |
Central Bank of India Ltd. | 41.84 | 36,350.00 | 73.00 | 41.06 | 0.61 | 12.08% | 10 | 121.48% |
Bank of Maharashtra Ltd. | 46.95 | 36,110.00 | 73.50 | 43.67 | 0.45 | 20.03% | 10 | 157.02% |
NBCC Ltd. | 77.91 | 21,040.00 | 139.83 | 70.07 | 0.00 | 23.85% | 1 | 194.30% |
Mahanagar Telephone Nigam Ltd. | 40.81 | 2,530.00 | 101.93 | 31.20 | -1.23 | 13.00% | 10 | 68.46% |
Andrew Yule & Company Ltd. | 27.33 | 1,340.00 | 65.65 | 25.80 | 0.33 | -6.27% | 2 | 28.36% |
*Data is updated as of 12th March 2025.
Disclaimer: Please be aware that investing in penny stocks or government penny stocks comes with inherent risks due to volatile market conditions and low liquidity. It is recommended to conduct your own research on government penny stocks list to make an informed investment decision.
2. Is government penny stocks safe to invest in?
Ans. Government penny stocks are considered to be the safe investment alternatives but, comes with several risks associated with them. These risks may include low volatility, less volume, and more. Conduct a deep research on top government penny stocks list to diversify your investment portfolio.
3. Who can invest in government penny stocks?
Ans. Investors with moderate risk tolerance and higher patience can consider investing in government penny stocks. They can generate sustainable returns and high dividend income through these stocks.
4. Which government penny stocks will boom in 2025?
Ans. Here is the top government penny stocks list which could boom in 2025.
Stock Names | CMP (in Rs) | Market Capitalisation (in Rs) | 52-Week High (in Rs) | 52-Week Low (in Rs) | Debt-to-Equity Ratio | Returns on Equity |
Punjab National Bank Ltd. | 86.55 | 99,740.00 | 142.90 | 85.46 | 0.76 | 13.70% |
Indian Overseas Bank Ltd. | 42.16 | 79,690.00 | 75.55 | 40.52 | 1.10 | 11.88% |
NHPC Ltd. | 76.91 | 77,260.00 | 118.40 | 71.00 | 0.85 | 7.39% |
Canara Bank Ltd. | 82.22 | 74,580.00 | 128.90 | 78.60 | 0.62 | 17.35% |
NDMC Ltd. | 64.01 | 56,280.00 | 95.45 | 59.70 | 0.15 | 21.43% |
*Data is updated as of 12th March 2025.
Government Penny Stocks List for Long Term
Stock Names | CMP (in Rs) | Market Capitalisation (in Rs) |
IDBI Bank Ltd. | 72.55 | 78,181.00 |
Bank of India Ltd. | 93.67 | 43,232.00 |
UCO Bank Ltd. | 35.66 | 43,185.00 |
SJVN Ltd. | 85.95 | 33,867.00 |
Punjab & Sind Bank Ltd. | 39.32 | 27,043.00 |
MMTC Ltd. | 50.81 | 7,749.00 |
National Fertilisers Ltd. | 77.98 | 3,844.00 |
Shipping Corporation of India Land & Assets Ltd. | 44.53 | 2,070.00 |
HMT Ltd. | 52.20 | 1,869.00 |
*Data is updated as of 12th March 2025.
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