The banking sector plays a significant role in the development of the Indian economy. It is regulated by the Reserved Bank Of India Act 1934 and the Banking Regulation Act 1949. It is defined as sufficiently capitalized and well-regulated which has successfully withstood the global downturn.
Here is the list of TOP-15 biggest public sector banks (PSBs) in India in 2021 in terms of market capitalization.
- HDFC Bank Ltd. – stands for the Housing Development Finance Corporation. It is the biggest private sector bank based on market assets and capitalization.
- State Bank of India (SBI) – one of the biggest corporations in India, a really old and very reliable bank.
- ICICI Bank Ltd – one of the most popular in India, established in June 1994.
- Kotak Mahindra Bank Ltd. – one of the largest banks in India, established in February 2003.
- Axis Bank Ltd. – the fifth-biggest bank in India providing foreign operations with 11 international office branches.
- IndusInd Bank Ltd. – the most important of new generation private sector banks in India.
- Yes Bank – established by 2 Indian businessmen in 2004, the bank suffered a financial crisis in 2020.
- Bank of Baroda – one of the TOP banks in India with estimated 100 million clients in the country and abroad.
- Punjab National Bank – a state-owned bank established in 1984, it has its headquarters in New Delhi.
- Bank of India – headquartered in Mumbai and established in 1906.
- Canara Bank – one of the largest banks in India founded in 1906.
- Union Bank of India (UBI) – initially established as a private financial institution in 1919.
- Indian Bank – one of the banking institutions that were nationalized and owned through the Finance Ministry.
- Central Bank of India – established in 1911 in Mumbai, owned and ran by Indians only.
- UCO Bank – started operating in 1943 with headquarters in Kolkata.
The banking system of India consists of the following banks:
- 21 private sector banks
- 27 public sector banks
- 49 international banks
- 56 regional rural banks
- 1,560 urban cooperative banks
- 94,380 rural cooperative banks
The most dominating position in the Indian market is enjoyed by public sector banks (PSBs). These banks hold approximately 80% of the market share. In these banks, the larger part (about more than 50%) is held by the Indian government.
1. HDFC Bank Ltd.
The Housing Development Finance Corporation (HDFC) is the largest private sector bank based on market capitalization and assets. Market capitalization in March 2020 proves it is the largest bank in India, providing products and services such as wholesale banking, retail banking, treasury, loans, credit cards, lifestyle loans, and other variety of loans with Payzapp and SmartBUY as digital products. The bank’s Corporate Social Responsibility under the HDFC Bank Parivartan a successful 11-year initiative that has managed to contribute an estimate of Rs. 14.41 to the CSR industry. Here are some details about this bank:
- Established in 1994
- Headquarters in Mumbai
- More than 88000 employees
- 4900 branches and 13000 ATMs across 2727 cities in India
- Market capitalization: Rs. 6,25,666.08 crores
2. State Bank of India (SBI)
State Bank of India (SBI) is the oldest and most reliable brand in India and one of the world’s biggest corporations. It is the 2nd largest bank owned by the Indian government in terms of market capitalization. The SBI offers credit cards, savings accounts, fixed deposits, personal loans, debit cards, home loans, loans against property, car loans, gold loans, mudra loans, and business loans. The multidimensional bank was the largest bank in India with one-fourth of its share in the deposits and total loan market before being overtaken in March 2020 by the HDFC Bank. Here are some details about the SBI bank:
- Established in 1955
- Headquarters in Mumbai (Maharashtra)
- More than 26350 branches across India
- Over 60,000 ATM across India
- 195 offices in 36 countries
- Serving more than 43 crores customers
- Market Capitalisation: Rs. 2,93,218.11 crore
3. ICICI Bank Ltd
ICICI bank is one of the most popular banks in India. It was established in June 1994 in Vadodara by the Industrial Credit and Investment Corporation of India offering a wide range of services including online money transfer and tracking service, current, savings account, time deposits, recurring deposits, mortgage, loans automated lockers, prepaid and debit cards, credit cards, and ICICI Pocket; a VISA powered digital wallet. It is a part of the Big Four Banks of India. It has maintained a big role in Indian financial infrastructure with the Entrepreneurship Development Institute (EDII) established by IDBI, IFCI, and SBI cohort companies, promoting the National Stock Exchange, establishment of CRISIL, India’s first credit rating agency with UTI amongst other significant achievements. Here are some details about the ICICI bank:
- headquarters in Mumbai (Maharashtra)
- more than 4870 branches across India
- More than 14367 ATMs across India
- International presence in 16 countries
- the market capitalization of Rs. 2,56,205.53 crore
4. Kotak Mahindra Bank Ltd.
Kotak Mahindra Bank is the fourth largest bank in India, based on market capitalization. This bank was established in February 2003. It is the second-largest Indian private sector bank with services for corporate and retail customers that include personal finance, investment banking, life insurance, and wealth management. Here are some details about Kotak Mahindra bank:
- Achieved 245th rank in brand finance banking in 2014
- Approximately 50,000 employees across India
- Market Capitalisation: Rs. 2,55,537.49 crores
5. Axis Bank Ltd.
In terms of market capitalization, Axis bank stands at 5th position in India founded in 1993 as UTI bank and officially changing its name to Axis Bank in 2007. It launched its all-women branch in Patna in 2014 and has Bollywood actress, Deepika Padukone as the bank’s ambassador. The Axis Bank oversees foreign operations with 11 international office branches in Singapore, Dubai, Abu Dhabi, Hong Kong, Colombo, Shanghai, and representative offices in Dhaka, Dubai, Abu Dhabi, Sharjah, and a subsidiary in London, selling financial services to large and mid-size businesses.
Here are some details about Axis bank:
- The fifth-largest bank in India
- Headquarters in Mumbai
- About 4000 branches across different cities in India
- 12700 ATMs across different cities in India
- More than 55000 employees across India
- a market capitalization of Rs. 1,97,360.89 crores
6. IndusInd Bank Ltd.
IndusInd bank of India stands at 6th position in terms of market capitalization according to the survey of April 2, 2019. It is recognized as one of the new generation private sector banks in India including corporate banking, retail banking, treasury, and foreign exchange, investment banking, capital markets, high-net-worth individual banking, and non-resident banking as services. It has successfully established representative offices in Dubai, London, and Abu Dhabi. Here are some details about the IndusInd bank:
- Established in 1994
- Headquarters in Mumbai
- 1558 branches across India
- 2450 ATMs across India
- the market capitalization of Rs. 1,07,064.08 crores
7. Yes Bank
The Yes Bank is another private bank in India. It was established by two Indian businessmen in 2004. The banks suffered a financial crisis in the first quarter of 2020, which led to a bailout by the Central Bank of India. As a result of this bailout, the Indian Government now owns a substantial amount of stock in the bank.
The main function of the bank is to offer its clients banking services and financial facilities for both individuals and organizations. Such services include individual savings and current accounts, corporate banking services, loans, and much more. Additionally, Yes Bank is part of a chain of closely related companies that offer capital and asset management services to clients.
Yes Bank is known to offer banking services to some high-profile clientele. These clients include RedBus and Airtel. Also, in 2020, Yes Bank purchased a substantial amount of stock in a satellite tv company.
8. Bank of Baroda
This bank is amongst the biggest banks in India. It is estimated to have over 100 million clients within India and abroad. With a total asset value of over $200 billion, the Bank of Baroda has tens of international offices all across the globe.
Before its rise as a major bank, Bank Baroda was created in 1908 as a private bank. A change in the Indian Government’s policy led to its nationalization. Before 2018, the Bank of Baroda was a simple bank with little national recognition. This bank became prominent after the merger of Dena, Vijaya, and Baroda Banks. This merger increased the bank’s assets, liquidity, and value, which propelled it into the third position amongst the biggest banks in India.
9. Punjab National Bank
This bank began operations in 1984. It is a state-owned bank with its corporate headquarters located in the Indian capital city of New Delhi. Just as how Kotak Mahindra Bank Ltd. is the second-largest bank in the private sector in India, Punjab National Bank is the second-largest bank in the public sector. Punjab National Bank is known to have over 10,000 branches all across India. Also, it has almost 200 million clients, which have access to over 12,000 ATM locations in all of the country. The huge size and capacity of this bank became what it is after it absorbed two other banks in the first quarter of 2020.
Punjab National Bank has several international subsidiaries in Dubai, Hong Kong, the United Kingdom, and more.
10. Bank of India
The Bank of India began operations in 1906. This bank has its headquarters in Mumbai and it is different from the State Bank of India (SBI). It is a commercial bank that became state-owned in 1969 after a shakeup within the financial sector by the Indian Government. Since then, the bank has grown to have more than 5,000 branches all across the Indian country. Additionally, the Bank of India has several international offices on several continents. Also, this bank is prominent on the international stage and is amongst the banks that developed the SWIFT platform, which is instrumental in the processing and management of international transactions across the globe.
11. Canara Bank
Canara Bank is one of the biggest banks in India. It was founded in 1906 by a philanthropist. Initially, when the bank was opened, the bank had another name. After its incorporation in 1910, the name Canara Bank was adopted.
Over the years, Canara Bank had purchased several financial institutions. In 1961, the bank purchased the Bank of Kerala, which was its first takeover. A few years later, Seasia Midland Bank was also taken over.
12. Union Bank of India (UBI)
The Union Bank of India was established in 1919 initially as a private financial institution. By 1969, the Indian Government became the majority shareholder of the bank after nationalization. Soon after, the Union Bank of India had enough resources to start acquiring other financial institutions. As a result, it purchased Belgaum Bank in 1975. In 1985, it also purchased Miraj State Bank.
The Union Bank of India is one of the biggest Indian banks at the moment. It has over 100 million clients all across the country. It has a yearly turnover that exceeds $100 billion. The financial success enjoyed by the bank is instrumental in its decision to open international branches. Union Bank of India now has several branches in the Middle East and China.
13. Indian Bank
Indian Bank began its operations in 1907. Ever since the bank has had its head office in Chennai. The bank is amongst several banking institutions that were nationalized by the Indian Government and owned through the Finance Ministry.
The bank offers several banking services to its over 100 million clients all across India. It has thousands of employees and over 6,000 branches in the country. With an average yearly turnover of over $50 billion, Indian Bank is one of the few banks that is compliant with the information and security standards. As a result, Indian Bank is certified as a secured banking institution.
14. Central Bank of India
The Central Bank of India is one of the largest banks in India. Established in 1911, the bank has its headquarters in Mumbai. It is one of the few financial institutions that is owned and ran by only Indians.
The Central Bank of India was also nationalized by the Indian Government. As a result, it is owned by the government through the Finance Ministry. The bank is sometimes mistaken for the Reserve Bank of India because of its name. However, the Central Bank of India is a commercial bank.
15. UCO Bank
UCO Bank is yet another bank that is owned by the Indian Government through the Finance Ministry. It began operations in 1943, and it has its headquarters in Kolkata. UCO Bank is amongst one of the most trusted financial institutions in India.
UCO Bank offers its clients a wide range of banking services. It also has a few branches in Hong Kong and Singapore.