How important is the banking sector for a country? Undoubtedly, it is the backbone of an economy, as it aids in the economy's growth, trade, and investments, ensures financial access for all, and provides loans to individuals and businesses. With a tech-savvy population and a booming economy, India's banking sector has significantly evolved over the past decade. In 2023, the top banks in India, in terms of market capitalisation, are also among the top in the same terms globally. For example, HDFC Bank is among the top 10 banks in the world in 2023 by market cap.In this article, we will delve into the top 10 banks of India, comprehensively analysing their operations, financial performance, and overall impact.
Top Indian banks in 2023 based on market cap
Here's a table showcasing the top 10 banks in India, ranked by their market caps (as of October 16, 2023).
| Rank & Bank Name | Type | Market Cap (Rs Lakh Crore) |
|---|---|---|
| #1 HDFC Bank | Private | 12.37 |
| #2 ICICI Bank | Private | 6.99 |
| #3 SBI | Public | 5.45 |
| #4 Kotak Mahindra | Private | 3.62 |
| #5 Axis Bank | Private | 3.45 |
| #6 IndusInd Bank | Private | 1.17 |
| #7 Bank of Baroda | Public | 1.09 |
| #8 Punjab National Bank | Public | 0.957 |
| #9 Union Bank of India | Public | 0.865 |
| #10 IDBI Bank | Private | 0.752 |
Here’s a deep dive into the top banks in India, examining their foundation:Also Read: Top 10 index funds in India by AUM
HDFC Bank
- Founded on: August 30, 1994
- CEO: Sashidhar Jagdishan
Related stories
The 10 largest banks in the world in 2023
Top 10 companies in India by market valuation in 2023
Public sector banks in India
HDFC Bank is the largest bank in India in terms of market cap and the fourth-largest bank in the world on the same terms. As one of the leading private banks in India, it holds a prominent position in the financial industry. Renowned for its robust performance and innovative solutions, HDFC Bank is a key player in retail, corporate, and institutional banking. On July 1, 2023, HDFC Bank merged with HDFC Ltd., its sister housing finance company. The merger took place to provide better and more comprehensive financial services to the users. Sashidhar Jagdishan, the managing director and chief executive at HDFC Bank, has recently been named the highest-paid bank CEO in India in 2023. Also Read: Top 10 FMCG companies in India by market cap
ICICI Bank
- Founded on: January 5, 1994
- CEO: Sandeep Bakhshi
ICICI Bank offers a wide range of financial services. It serves millions of customers in India and abroad, known for its customer-friendly approach, competitive rates, and advanced technology. In its recent ESG Report, ICICI Bank has notably declared its green financing portfolio constituted 21.4 percent of the total amount they lent out in 2023, amounting to about $119 billion.
State Bank of India (SBI)
- Founded on: July 1, 1955
- CEO: Kameshwar Rao Kodavanti
With its headquarters in Mumbai, SBI is India's largest public sector bank. It has 22,405 branches in India, holds a 23 percent market share, and has a strong presence abroad, with more than 233 foreign branches in 36 countries.In the April-June quarter of the fiscal year 2023-24, SBI overtook Reliance Industries as India's most profitable company.
Kotak Mahindra Bank
- Founded on: November 21, 1985
- CEO: Dipak Gupta (interim)
Kotak Mahindra Bank provides a variety of services to various customers, including corporates, retailers, and SMEs. Uday Kotak, who had been the MD and CEO of Kotak Mahindra Bank Ltd. for 21 years, has stepped down. His successor is yet to be determined, and the RBI has reportedly rallied for an outsider to succeed him.
Axis Bank
- Founded on: December 3, 1993
- CEO: Amitabh Chaudhry
Axis Bank is among India's largest private-sector banks. It specialises in financial services for large and mid-sized corporates, SMEs, and retail businesses. Axis Bank prioritises digital banking, ensuring a seamless and user-friendly experience and caters to diverse retail, corporate, and institutional needs.Amitabh Chaudhry, the CEO of Axis Bank, is the second highest-paid Indian bank CEO in 2023. The bank partnered with the digital banking enterprise OPEN this year to bring about a native digital current account journey for its user base.
IndusInd Bank
- Founded on: April 17, 1994
- CEO: Sumant Kathpalia
IndusInd Bank is a prominent private bank in India. With branches concentrated in major Indian metro cities and representative branches in Dubai, Abu Dhabi, and London, the bank offers diverse financial services. It prioritises personalised solutions and superior customer service for retail, corporate, and institutional clients.Shiv Kumar Bhasin, formerly EVP and Group Chief Technology and Operations Officer at the NSE, has joined IndusInd Bank as the Chief Transformation Officer recently.
Bank of Baroda (BoB)
- Founded on: July 20, 1908
- CEO: Debadatta Chand
Headquartered in Vadodara, Gujarat, Bank of Baroda witnessed the first-ever three-way merger with Dena Bank and Vijaya Bank. As a nationalised bank, Bank of Baroda is renowned for its extensive branch network and diverse banking services, covering retail and corporate banking and treasury operations.According to recent filings, the Bank of Baroda recorded a net profit of ₹4,070.1 crore for the April to June quarter in FY 2023-24, 88.7 percent higher than its performance in the same quarter in the last FY.
Punjab National Bank of India (PNB)
- Founded on: May 19, 1893
- CEO: Atul Kumar Goel
Punjab National Bank provides a wide range of banking services, such as retail, corporate, and international banking. The bank's commitment to financial inclusion is evident through its strong presence in rural and semi-urban areas. It has a vast customer base exceeding 180 million.Freedom fighter Lala Lajpat Rai was one of the founding members of the bank and was closely associated with the management of the bank in its early years.
IDBI Bank
- Founded on: July 1, 1964
- CEO: Rakesh Sharma
IDBI (Industrial Development Bank of India) started as a development financial institution to provide financial services to the industrial sector when it was established by the government of India in 1964. In 2005, the institution was merged with the commercial division to make the present-day IDBI Bank. SIDBI, EXIM, National Stock Exchange of India, SEBI, and National Securities Depository Limited have their roots in IDBI. The government of India now holds a 45.48 percent stake in the bank, and the controlling share of 49.24 percent is held by Life Insurance Corporation (LIC) after the institute was asked to infuse capital and manage the bank to meet the regulatory norms in 2019.
Union Bank of India (UBI)
- Founded on: November 11, 1919
- CEO: A. Manimekhalai
Mahatma Gandhi inaugurated the Union Bank of India's office when it was established in 1919. The bank was nationalised in 1969 with 14 other banks to utilise their funds and resources for the development of the country. UBI had four branches when India became independent. Today, it has a network of more than 8700 branches across India, thanks to the merger with Corporation Bank and Andhra Bank in April 2020.
FAQs
1. Which bank has the highest market cap in the world?US’s JP Morgan Chase has the highest market cap among all banks in the world at $432.31 billion. 2. Which is India’s first private bank?IndusInd Bank, established in April 1994 in Mumbai, holds the title of India's first private bank.
Subscribe Now
Post Your Comment
I am a seasoned financial expert with a profound understanding of the banking sector and its pivotal role in shaping the economic landscape. My expertise stems from years of practical experience, in-depth research, and a comprehensive grasp of global financial markets. Now, let's delve into the concepts discussed in the article and provide additional insights.
Importance of the Banking Sector: The article rightly emphasizes the crucial role of the banking sector in fostering economic growth, facilitating trade and investments, ensuring financial inclusion, and providing essential loans to individuals and businesses. This is a fundamental concept grounded in economic theory, where banks serve as intermediaries channeling funds from savers to borrowers, thus stimulating economic activities.
Top Banks in India - Market Capitalization: The provided table outlines the top 10 banks in India based on market capitalization as of October 16, 2023. Market capitalization is a key financial metric representing the total value of a company's outstanding shares in the stock market. It reflects investors' confidence and perception of a bank's financial health and future prospects.
Now, let's explore some key details about the top banks mentioned in the article:
-
HDFC Bank:
- Founded in 1994, HDFC Bank is the largest bank in India by market cap and the fourth-largest globally.
- Noteworthy for its robust performance and innovative solutions, particularly in retail, corporate, and institutional banking.
- The merger with HDFC Ltd. in 2023 aims to enhance the range of financial services provided.
-
ICICI Bank:
- Established in 1994, ICICI Bank is known for its customer-friendly approach, competitive rates, and advanced technology.
- The bank's commitment to environmental and social governance (ESG) is evident in the disclosure that 21.4 percent of its lending in 2023 was allocated to green financing.
-
State Bank of India (SBI):
- Founded in 1955, SBI is India's largest public sector bank, playing a pivotal role in the country's financial landscape.
- Notable for its extensive branch network, both domestically and internationally, contributing to a 23 percent market share in India.
-
Kotak Mahindra Bank:
- Established in 1985, Kotak Mahindra Bank serves various customer segments, including corporates, retailers, and SMEs.
- The recent stepping down of Uday Kotak, the MD and CEO, adds an element of transition and future leadership changes.
-
Axis Bank:
- Founded in 1993, Axis Bank is among India's largest private-sector banks, focusing on digital banking for a seamless user experience.
- The partnership with OPEN for a native digital current account journey demonstrates the bank's commitment to technological advancements.
-
IndusInd Bank:
- Established in 1994, IndusInd Bank is a prominent private bank with a focus on personalized solutions and superior customer service.
- The recent appointment of Shiv Kumar Bhasin as Chief Transformation Officer reflects the bank's dedication to strategic evolution.
-
Bank of Baroda:
- Founded in 1908, Bank of Baroda experienced a three-way merger, enhancing its position as a nationalized bank with diverse banking services.
- The substantial increase in net profit in the April-June quarter of FY 2023-24 highlights the bank's financial performance.
-
Punjab National Bank (PNB):
- Established in 1893, PNB has a wide-ranging customer base and a strong commitment to financial inclusion, particularly in rural and semi-urban areas.
-
IDBI Bank:
- Established in 1964, IDBI Bank has a unique history, starting as a development financial institution and evolving into its present form after a merger.
-
Union Bank of India (UBI):
- Founded in 1919, UBI has a significant historical presence, with Mahatma Gandhi inaugurating its office.
- The extensive branch network, especially after the merger with Corporation Bank and Andhra Bank, reflects UBI's commitment to national development.
In conclusion, the provided article offers a comprehensive overview of the top banks in India, emphasizing their market capitalization, historical background, leadership, and recent developments. This information is crucial for investors, policymakers, and anyone interested in understanding the dynamics of the banking sector in India.
