The importance of the banking sector in any country cannot be overstated. Serving as the backbone of an economy, it fuels growth, facilitates trade and investments, ensures financial access for all, and provides crucial loans to individuals and businesses. In the dynamic landscape of India’s economy, characterized by a tech-savvy population and robust growth, the banking sector has undergone significant evolution over the past decade. As of 2024, India’s top banks, ranked by market capitalization, are not only leaders domestically but also hold prominent positions globally.
Top Indian Banks in 2024: A Market Cap Overview
The table below highlights the top 10 banks in India, ranked by their market capitalization as of January 25, 2024:
1. HDFC Bank:
HDFC Bank, founded on August 30, 1994, and helmed by CEO Sashidhar Jagdishan, has claimed the top spot in India’s banking landscape in terms of market capitalization. Notably, it ranks as the fourth-largest bank globally in the same metric. Renowned for robust performance and innovative solutions, HDFC Bank plays a pivotal role in retail, corporate, and institutional banking. The bank made headlines on July 1, 2023, with its merger with sister housing finance company HDFC Ltd., aimed at providing comprehensive financial services.
2. ICICI Bank:
Established on January 5, 1994, with CEO Sandeep Bakhshi at the helm, ICICI Bank stands out for its wide range of financial services and a customer-friendly approach. In its recent ESG Report, the bank highlighted that its green financing portfolio constituted 21.4% of total lending in 2023, amounting to about $119 billion.
3. State Bank of India (SBI):
Founded on July 1, 1955, and led by Chairman Dinesh Kumar Khara, State Bank of India (SBI), headquartered in Mumbai, holds the position of India’s largest public sector bank. With a substantial market share and a vast international presence, SBI overtook Reliance Industries as India’s most profitable company in the April-June quarter of fiscal year 2023-24.
4. Kotak Mahindra Bank:
Established on November 21, 1985, with interim CEO Dipak Gupta, Kotak Mahindra Bank caters to a diverse clientele, including corporates, retailers, and SMEs. The recent stepping down of Uday Kotak, the MD and CEO for 21 years, has prompted discussions on the selection of a successor, with the RBI advocating for an external appointment.
5. Axis Bank:
Founded on December 3, 1993, under CEO Amitabh Chaudhry, Axis Bank is a key player in India’s private-sector banking. Emphasizing digital banking, the institution aims to provide a seamless and user-friendly experience. A recent collaboration with digital banking enterprise OPEN further enhances its native digital current account journey.
6. IndusInd Bank:
Established on April 17, 1994, and led by CEO Sumant Kathpalia, IndusInd Bank focuses on personalized solutions and superior customer service for retail, corporate, and institutional clients. The recent appointment of Shiv Kumar Bhasin as Chief Transformation Officer reflects the bank’s commitment to innovation.
7. Bank of Baroda (BoB):
Founded on July 20, 1908, with CEO Debadatta Chand, Bank of Baroda witnessed a historic three-way merger with Dena Bank and Vijaya Bank. The bank’s robust financial performance, with a net profit of ₹4,070.1 crore for the April to June quarter in FY 2023-24, showcases its resilience and market strength.
8. Punjab National Bank (PNB):
Established on May 19, 1893, with CEO Atul Kumar Goel, Punjab National Bank stands out for its wide range of banking services and commitment to financial inclusion. With a vast customer base exceeding 180 million, PNB has a strong presence in rural and semi-urban areas.
9. Union Bank of India (UBI):
Founded on November 11, 1919, and led by CEO A. Manimekhalai, Union Bank of India (UBI) traces its roots back to Mahatma Gandhi’s inauguration in 1919. Nationalized in 1969, UBI has expanded its network, with over 8700 branches post the merger with Corporation Bank and Andhra Bank in April 2020.
10. IDBI Bank:
Established on July 1, 1964, with CEO Rakesh Sharma, IDBI Bank evolved from a development financial institution to its present-day form after a merger with the commercial division in 2005. Currently, the government of India holds a 45.48% stake, and LIC controls 49.24%, following capital infusion and regulatory norms adherence in 2019.
11. Canara Bank:
Founded on July 1, 1906, with CEO K. Satyanarayana Raju, Canara Bank boasts a rich legacy and has played a crucial role in India’s banking sector. As one of the oldest banks, it continues to contribute to the nation’s economic development.
In conclusion, these top banks collectively shape India’s financial landscape, playing a critical role in the nation’s economic progress. Their operations, financial performance, and impact reverberate not only nationally but also resonate globally, showcasing India’s position as a key player in the international banking arena.
