Top 10 banks in India by market cap in 2023

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 September 25, 2023).

Rank & Bank Name	Type	Market Cap (Rs Lakh Crore)
#1 HDFC Bank	Private	11.58
#2 ICICI Bank	Private	6.70
#3 SBI	Public	5.30
#4 Kotak Mahindra	Private	3.54
#5 Axis Bank	Private	3.14
#6 Bank of Baroda	Public	1.12
#7 IndusInd Bank	Private	1.11
#8 Punjab National Bank	Public	0.883
#9 IDBI Bank	Private	0.761
#10 Union Bank of India	Public	0.756

Here’s a deep dive into the top banks in India, examining their foundation:

HDFC Bank

• Founded on: August 30, 1994
• CEO: Sashidhar Jagdishan

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.

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.