The Indian banking sector plays an important role that helps in taking the economy forward. The Indian banking sector is among the most explored retail lending sector in the Asia-Pacific region thus making the Indian banks massive opportunities for global investments. In this respect, we will have a look at the top 10 banks in India.
Banks provide loans to agriculture along with commercial individuals. India has one of the most crucial loans in offering loans to the commercial operators also in the agricultural sectors. There are mainly two types of banks, namely the private sector and the public sector banks. Both these banks contribute to the development of the nation as per their own levels and capabilities.
Top 10 Banks In India 2021
The banking sector in this country is an industry and also a section of the economy that is inclined to the holding of financial assets for others and then investing those financial assets as a potential way to formulate more wealth.
Banks in India function in a variety of ways and cater to a variety of varied market sectors. As a result of that, large banking firms will often include several groups or divisions making up the complete bank corporate divisions. While varied banks may have varied divisions, these are mainly the divisions banks in India have.
- Retail Banking
- Corporate/Commercial Banking
- Global Banking
- Private Banking
- Investment Banking
HDFC Bank Ltd. (Housing Development Finance Corporation Ltd.)
The HDFC (Housing Development Finance Corporation) Limited can be a name that has been associated with the Indian housing industry for the last 4 decades. As the creators in housing mortgages, this is a name that has been portrayed by solidity, trust, both financial and managerial, and strong principles. Since the day of its establishment in 1977, HDFC has illustrated and set high standards within the housing finance sector. This also tops among the list of top 10 private banks in India.
SBI (State Bank Of India)
SBI (State Bank of India ) is an Indian public sector, multinational financial and banking services statutory body that has its headquarters in Mumbai, Maharashtra. SBI stands at the 43rd largest bank around the globe and is ranked 221st in the Fortune Global 500 list of the globe’s largest corporations in the last year, being the only Indian financial institution on the list. This bank is a public sector bank and the biggest bank in India with a market share of 23% by assets and a 25% share of the complete loan and deposits market. This also tops among the list of top 10 government banks in India.
ICICI Bank Ltd.
ICICI Bank Limited is a private Indian development finance institution that has its registered office in Gujarat, Vadodara, and its corporate office in Mumbai, Maharashtra. It provides a wide array of financial services and banking products for retail and corporate customers via a variety of delivery mediums and specialized subsidiaries in the sectors of non-life insurance, investment banking, life, venture capital, and asset management. The bank provides a network of 5,275 branches and 15,589 ATMs throughout India and has its presence in 17 nations.
Kotak Mahindra Bank Ltd.
Kotak Mahindra Bank Ltd. is a private sector bank in India that is headquartered in Mumbai, Maharashtra, India.
It provides financial services and banking products for corporate and retail customers in the sector of personal finance, life insurance, investment banking, and wealth management. As of 2021 February, it was the third-largest Indian private sector bank as per market cap, with 1600 branches and 2519 ATMs.
Axis Bank Ltd.
Axis Bank is the fifth largest private sector bank in this country. The bank provides the complete spectrum of financial services to user segments coating Large and Mid-Corporates, Agriculture, MSMEs, and retail businesses. The Bank functions in four segments, namely retail banking, treasury, corporate/wholesale banking, and other financial and banking business.
Retail banking has lent to individuals or small businesses subject to the product, orientation, and granularity criterion. It also has card services, liability products, automated teller machines (ATM) services, Internet banking, depository, non-resident Indian (NRI) services, and financial advisory services.
The corporate or wholesale banking sector has corporate relationships not included under corporate advisory services, retail banking, placements and syndication, management of public issues, capital market-related services, project appraisals, and cash management services. The bank offered a network of 4586 branches at the end of December 2020 throughout India.
IndusInd Bank Ltd.
This is a new-generation Indian bank that has its headquarters in Pune. The bank provides transactional, commercial, and electronic banking services and products. IndusInd Bank was established in April 1994 by then Union Finance Minister Manmohan Singh. This bank is the first financial institution among the new-generation private banks in this country.
The bank began its functions with ₹100 crores (10 billion) in the capital, among which ₹60 crores were issued by Indian residents and ₹40 crores were raised by Non-Resident Indians (NRI). The bank emphasizes retail banking services and is also operating on broadening its network of branches all over the nation. As per the bank, its name is obtained from the Indus Valley Civilisation.
Yes Bank Ltd.
This is also among the top private banks in India. This is an Indian private sector bank that has its headquarters in Mumbai, India, and was established by Ashok Kapur and Rana Kapoor in 2004. It provides a wide array of financial and banking products for retail and corporate customers via retail asset and banking management services.
On 5 March 2020 in an attempt to dodge the collapse of the bank, which carried a huge amount of bad loans, the Reserve Bank of India (RBI) took complete control of it. RBI later recreated the board and named Prashant Kumar, who is the former Chief financial officer of SBI, as new CEO and MD at Yes Bank. Yes Bank is now owned by the State Bank of India who has a stake of 30% in the company as of 28 July 2020.
Punjab National Bank
Punjab National Bank, which is abbreviated as PNB, is an Indian government owned bank which is under the ownership of the Ministry of Finance, Government of India that has its headquarters in New Delhi, India. The bank was established in 1894 and is the second biggest government owned bank in India after SBI, both in terms of its network and business. The bank has more than 180 million users, 10,910 branches, and more than 13,000 ATMs post-merger with Oriental Bank of Commerce and United Bank of India, which was effective from 1 April 2020.
Bank of Baroda
BOB (Bank of Baroda) is a government owned banking and financial services company of India under the ownership of the Ministry of Finance, Indian Government. It is the third biggest government owned financial institution in India, with 132 million users, a complete business of US$218 billion, and a worldwide presence of 100 overseas offices. On the 2019 data, it is ranked 1145 on the Forbes Global 2000 list.
The Indian government declared the merger of Bank of Baroda, Dena Bank, and Vijaya Bank on September 17, 2018, to form the second-largest lender in the country. The collaboration is the first-ever three-way integration of banks in the nation, with a blended business of Rs14.82 trillion (short scale), making it the third biggest bank after SBI (State Bank of India) and ICICI Bank.
The Maharaja of Baroda, Maharaja Sayajirao Gaekwad III, established the bank on 20 July 1908 in the Princely State of Baroda, in Gujarat. The Indian Government nationalized the bank, along with 13 other important commercial banks of India on 19 July 1969; the bank has been appointed as a profit-making PSU (public sector undertaking).
Bank Of India
BOI (Bank of India) is a government bank in India under the ownership of the Ministry of Finance, the Indian Government that has its headquarters at Bandra Kurla Complex, Mumbai. Established in 1906, it has been owned by the government since nationalization in 1969. BoI includes 5,316 branches as of 31 March 2019, which includes 56 offices beyond India, which includes five representative offices, five subsidiaries, and one joint venture.
BoI is a founding member of SWIFT (Society for Worldwide Interbank Financial Telecommunications), which offers the provision of communication services and cost-effective financial processing.
The Bottom Line
The banking system in India is the backbone of the economy and they constitute a huge proportion of the financial space. In this article, we have spoken about the top 10 banks in India based on their market share and also market capitalization. This list may change based on their market position. We have also spoken about the top 5 nationalized banks in India.