India’s digital transformation is being accelerated by government-backed initiatives in fintech, digital banking, and AI adoption. In 2025, public sector undertakings (PSUs) and semi-government fintech players are emerging as multibagger opportunities in the AI + Digital Finance space — but are still under the radar of most retail investors.
If you’re looking for safe yet explosive growth stocks
backed by strong fundamentals and government vision like Digital India, GEM
portal, UPI expansion, and AI in public finance, this list is for you.
Why Government-Backed
Digital Finance Stocks Are a Big Deal
- The Indian government has made digital financial inclusion a national priority through:
- RBI’s Digital Lending Framework
- Digital Rupee (CBDC) rollout
- PSU banks adopting AI for fraud detection & loan automation
- ONDC (Open Network for Digital Commerce) integration for SMEs
These reforms aren’t just policy — they’re fueling the
earnings of fintech-focused PSU and hybrid entities. Investors who spot these
early can ride the next wave of sustainable multibagger growth.
Top Govt-Backed Digital Finance Stocks in India 2025
1. Bank of Baroda
(BoB)
Price (July 2025): 240rs
Why it’s a gem:
BoB is among the first PSU banks to roll out AI-based credit
scoring, digital KYC automation, and an AI chatbot for retail loans.
Through its digital-only arm Bob World, it’s competing with
private sector apps. BoB’s recent focus on MSME digital credit makes it a
strong AI + government fintech play.
Also read: Top SME IPOs in India 2025 – Explosive Small Cap Gems
2. India Post
Payments Bank (IPPB) (unlisted, but IPO expected)
Why track this?
IPPB is using Aadhaar-enabled payments, AI-led fraud
detection, and digital micro-loans for last-mile banking in villages.
IPO buzz is building and could list in FY25–FY26. Keep this
on your radar if the DRHP is filed.
Price (July 2025): 38.36rs
Why buy:
Recently partnered with NPCI and Razorpay to launch
real-time AI-driven payment gateway for rural merchants.
Strong govt push + asset quality improvement + digital
inclusion = low-priced PSU multibagger.
Price (July 2025): 1983rs
Why include it:
Post-merger with HDFC Ltd, HDFC Bank has integrated AI
underwriting tools, digital insurance sales, and API-based open banking
platforms.
While not a PSU, it’s deeply involved with RBI’s digital
lending and India Stack ecosystem.
Hidden Fintech-PSU Hybrids With Digital Exposure
5. UTI Asset
Management Co. Ltd
Price: 1406rs
Why it matters:
UTI is backed by LIC, SBI, BoB, and PNB. It is moving fast
into AI-driven investment advisory through mobile platforms.
Now using machine learning for passive fund optimization. A
quiet PSU fintech revolution.
6. NSDL e-Governance
Infrastructure Ltd (IPO expected 2025)
NSDL e-Gov is at the core of India’s digital ID and finance
verification stack. It manages PAN cards, NPS, e-KYC and is building AI-powered
income tax analytics tools for the government.
IPO coming in late 2025 — high demand expected due to
monopoly-like positioning.
7. Indian Railway
Finance Corporation (IRFC)
Price (July 2025): 134.10rs
Why watch:
IRFC is now using digital loan monitoring systems backed by
AI to streamline railway project financing. Stable returns with added
AI-fintech exposure via backend systems.
Also read it: Top Penny Stocks Under 50rs for Multibagger Returns by 2026
Bonus stocks Pick: AI Startup Partnered With Government
8. Saksoft Ltd
Price: 239rs
Not a PSU, but working closely with UIDAI and state
governments for AI-based data processing, digital payments infrastructure, and
cloud migration for governance projects.
Midcap IT + digital
finance + AI = a compelling multibagger bet.
Key Trends Fuelling
These Stocks in 2025
- Government's rs1,000 crore AI
Mission Fund launched in Union Budget 2025
- PSU banks mandated to adopt AI-based fraud detection systems
- RBI’s push for paperless digital lending across Tier-2 cities
- UPI Lite + Digital Rupee pilot expanding via PSU banks
Conclusion: Backed by the Nation, Powered by AI
While private fintechs often steal the spotlight, PSU-backed
digital finance players are emerging as quiet multibaggers. These companies not
only have government support but also the infrastructure and customer base to
scale quickly.
Smart investors are betting on these names before the
mainstream catches on. Don’t miss this new wave of Govt + AI + Fintech stocks
in 2025.
The above information is for educational purposes only. Please consult a SEBI-registered financial advisor before investing. Past performance is not indicative of future results.
Piyush Sharma is a long-term equity investor and founder of MultibaggerStockIdeas.com. With over 15 years of experience in Indian stock markets, he shares research-backed investment insights, personal lessons, and practical strategies for identifying multibagger stocks early.
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