Forbes India 15th Anniversary Special

Private banks in India: Market capitalization, net sales and more

Find all about India's private sector banks with their market caps in this post

Published: Jan 5, 2024 04:50:19 PM IST
Updated: Feb 15, 2024 04:04:41 PM IST

Private banks in India: Market capitalization, net sales and more

In contrast to their public sector counterparts, private banks in India operate with a more profit-oriented approach, often characterised by a higher level of innovation and customer-centric services. While they face competition from public sector banks, private banks in India have excelled in embracing advanced technology, offering a wide range of digital banking solutions, and providing personalised services to their customers. As a result, private banks in India have attracted a significant share of the banking market and continue to contribute to India's financial growth and diversification.

In this article, we will explore the top private banks in India.

Also Read: Public sector banks in India

Private banks in India

These are 22 the private banks in India, with market cap data sourced from BSE India (as of January 05, 2024)

Serial Number Bank Name Market Cap (Crore) Headquarter
1 HDFC Bank 12,77,435.56 Mumbai, Maharashtra
2 ICICI Bank 6,97,357.42 Mumbai, Maharashtra
3 Kotak Mahindra 3,67,275.99 Mumbai, Maharashtra
4 Axis Bank 3,50,683.81 Mumbai, Maharashtra
5 IndusInd Bank 1,27,423.64 Pune, Maharashtra
6 IDBI Bank 73,772.23 Mumbai, Maharashtra
7
Yes Bank 68,941.49 Mumbai, Maharashtra
8
IDFC First Bank 61,241.03
Mumbai, Maharashtra
9 AU Small Finance Bank 53,468.52 Jaipur, Rajasthan
10 Bandhan Bank 40,538.49 Kolkata, West Bengal
11 Federal Bank 37,620.46 Aluva, Kerala
12 RBL Bank 17,313.34 Mumbai, Maharashtra
13 Jammu & Kashmir Bank 14,271.32 Srinagar, Jammu Kashmir
14 Karur Vysya Bank 13,354.30 Karur, Tamil Nadu
15 City Union Bank 11,335.49 Kumbakonam, Tamil Nadu
16 Karnataka Bank 8,231.80 Mangaluru, Karnataka
17 Tamilnad Mercantile Bank 7,940.53 Thoothukudi, Tamil Nadu
18 CSB Bank 7,064.34 Thrissur, Kerala
19 South Indian Bank 5,675.51 Thrissur, Kerala
20 DCB Bank 4,926.73 Mumbai, Maharashtra
21 Dhanlaxmi Bank 787.63 Thrissur, Kerala
22 Lakshmi Vilas Bank 257.59 Chennai, Tamil Nadu

Top 10 private banks in India by market cap

Now, let’s take a closer look at India's top 10 private banks by market capitalisation.

Note: Data on net sales on December 27, 2023, was taken from Moneycontrol.

HDFC Bank

  • CEO: Sashidhar Jagdishan
  • Net Sales (Cr.): 161,585.54
HDFC Bank, established in 1994, is one of the top private banks in India. It is India’s largest private sector bank by assets and among top 10 banks in the world by market capitalisation, following its merger with its parent company, HDFC Limited.

HDFC Bank boasts an extensive network of branches and ATMs across the nation.
Its commitment to technological innovation has made it a pioneer in digital banking, offering a range of services from mobile banking to online payments.

Also Read: Commercial banks in India: Types and functions

ICICI Bank

  • CEO: Sandeep Bakshi
  • Net Sales (Cr.): 109,231.34
ICICI Bank boasts a rich history since its inception in 1994. It is India’s second-largest private sector lender by asset. Renowned for its innovation, it's a pioneer in digital banking solutions, offering an array of user-friendly online services.

ICICI has a network of 6,004 branches and 16,927 ATMs across India, which ensures convenient access for customers nationwide. The bank has a presence in 17 countries, including the United Kingdom, Canada, and Singapore.

Kotak Mahindra

  • CEO: Ashok Vaswani
  • Net Sales (Cr.): 34,250.85
Kotak Mahindra Bank, established in 2003, has swiftly risen to prominence.  It clinched its position as one of the top 10 largest private sector banks after strategically acquiring ING Vysya Bank. Known for its dynamic approach and innovative services, it offers a wide range of financial solutions, including banking, wealth management, and insurance. With a growing network of branches and ATMs, it provides accessibility to customers nationwide.

Axis Bank

  • CEO: Amitabh Chaudhry
  • Net Sales (Cr.): 85,163.77
Axis Bank, founded in 1993, stands as a prominent player in India's private banking landscape. It is India’s third-largest private sector bank by assets and fourth-largest by market capitalisation.

It offers various financial services, including retail banking, corporate banking, and wealth management. Axis Bank prioritises technological innovation, providing advanced digital banking solutions. On October 5, it launched ‘Open by Axis Bank’, which seeks to transform digital banking services for its customers.

IndusInd Bank

  • CEO: Sumant Kathpalia
  • Net Sales (Cr.): 36,367.91
IndusInd Bank, established in 1994, is the first of the new-generation banks. It offers a comprehensive suite of financial services, including banking, lending, and wealth management. With a growing network of branches and ATMs, IndusInd Bank ensures convenient access to customers nationwide. The bank is committed to technological innovation, providing modern digital banking solutions. Recently, it launched its app ‘INDIE’ to acquire customers online instead of through traditional bank branches.

IDBI Bank

  • CEO: Rakesh Sharma
  • Net Sales (Cr.): 20,569.78
IDBI Bank, established in 1964, is majorly owned by the Life Insurance Corporation of India (LIC). However, it won't be owned by LIC for long as the Department of Investment and Public Asset Management (DIPAM) has scheduled disinvestment of portions of stakes held by IDBI Bank promoters—the government and LIC—for FY24.

IDBI Bank's extensive network of over 1900 branches and 3,700 ATMs ensures nationwide accessibility. It strives for technological advancement and provides digital banking solutions.

Yes Bank

  • CEO: Prashant Kumar
  • Net Sales (Cr.): 22,697.54
Yes Bank, founded in 2004, has made its mark as one of the top private-sector banks in India. The Yes Bank crisis, which unfolded in early 2020, was a significant event in India's banking sector. The problem was triggered by a sharp deterioration in the bank's financial health, primarily due to a surge in bad loans and questionable lending practices. However, Yes Bank is steadily growing under the new leadership of Prashant Kumar. Kumar is banking on acquisitions to grow the bank and maintain profitability. It continues to serve a diverse clientele with a wide range of financial products and services, embodying a commitment to excellence.

IDFC First Bank

  • CEO: V. Vaidyanathan
  • Net Sales (Cr.): 22,727.54
IDFC First Bank, formed through a merger of Infrastructure Development Finance Company and Capital First in 2015, has rapidly evolved into a noteworthy private sector bank in India. It offers a range of banking and financial solutions. With a growing network of branches and ATMs, IDFC First Bank ensures nationwide accessibility.

The bank's robust risk management practices and consistent financial performance have earned trust among customers. In September 2023, IDFC First Bank was inducted into the MSCI index. It attracted over $200 million of foreign institutional investors money in the Indian market.

AU Small Finance Bank

  • CEO: Sanjay Agarwal
  • Net Sales (Cr.): 8,205.41
AU Small Finance Bank, established in 1996 as AU Financiers, has transformed into a dynamic player in India's banking sector. Known for its specialised focus on small and medium enterprises (SMEs), it offers a range of financial services, including banking, lending, and wealth management.

AU Small Finance Bank is a great case study of how smaller banks can rapidly grow if they follow the right systems and processes. AU plans to expand fast across its three business lines - lending for small businesses, home loans and vehicles. The bank also provides modern digital banking solutions tailored to the needs of SMEs and retail customers.

Bandhan Bank

  • CEO: Chandra Shekhar Ghosh
  • Net Sales (Cr.): 15,904.70
Bandhan Bank, founded in 2014, has quickly become a prominent private sector bank in India. With a strong focus on microfinance and retail banking, it offers a range of financial services. Bandhan Bank's branch network and digital channels ensure wide accessibility nationwide.

The bank seems committed to technological advancement, having recently transitioned its core banking system to a new platform.