Despite global market crashes, India’s banking sector is one of the most stable systems worldwide. It comprises 21 private banks and 12 public sector banks. Private banks are the essential catalysts of the Indian economy. They drive financial innovation in a country. With India being the most populous country and one of the fastest-growing consumer markets, these banks play a very important role in managing finances effectively.
Understanding Private Sector Banks
Private sector banks are financial institutions owned by private shareholders. Unlike government-owned public sector banks, they focus on maximising profits. Private banks adhere to regulatory guidelines.
Here is the list of all private sector banks in India as of 2024:
| Private Banks | Headquarters | Year of Establishment |
|---|---|---|
| Axis Bank | Mumbai, Maharashtra | 1993 |
| Bandhan Bank | Kolkata, West Bengal | 2015 |
| CSB Bank | Thrissur, Kerala | 1920 |
| City Union Bank | Thanjavur, Tamil Nadu | 1904 |
| DCB Bank | Mumbai, Maharashtra | 1930 |
| Dhanlaxmi Bank | Thrissur, Kerala | 1927 |
| Federal Bank | Aluva, Kerala | 1931 |
| HDFC Bank | Mumbai, Maharashtra | 1994 |
| ICICI Bank | Mumbai, Maharashtra | 1994 |
| Induslnd Bank | Mumbai, Maharashtra | 1964 |
| IDFC First Bank | Mumbai, Maharashtra | 2015 |
| Jammu and Kashmir Bank | Srinagar, Jammu and Kashmir | 1938 |
| Karnataka Bank | Mangaluru, Karnataka | 1924 |
| Karur Vysya Bank | Karur, Tamil Nadu | 1916 |
| Kotak Mahindra Bank | Mumbai, Maharashtra | 2003 |
| IDBI Bank | Mumbai, Maharashtra | 1964 |
| Nainital Bank | Nainital, Uttrakhand | 1922 |
| RBL Bank | Mumbai, Maharashtra | 1943 |
| South Indian Bank | Thrissur, Kerala | 1929 |
| Tamilnad Mercantile Bank | Toothukudi, Tamil Nadu | 1921 |
| YES Bank | Mumbai, Maharashtra | 2004 |
Start investing in Index Funds.
Types of Private Banks
Private banks can be classified into the following categories:
1. Commercial Banks
These banks provide a wide range of banking services such as savings accounts, all kinds of deposits, loans and other credit facilities. Some of the major commercial banks include Axis Bank, ICICI Bank, HDFC Bank and other nationalised banks.
2. Small Finance Banks
Such banks are designed to promote financial inclusion. They cater mostly to the underserved part of a country’s population. Banks like AU Small Finance Bank, Ujjivan Small Finance Bank and ESAF Small Finance Bank are few of the small finance banks in India.
3. Cooperative Banks
These banks work on a cooperative basis. They serve local communities by offering financial services. Cooperative banks in India include Saraswat Bank, Bharat Co-operative Bank, Abhyudaya Co-operative Bank and many other banks
4. Payments Banks
These digital banks focus on cashless transactions and aim to simplify banking through technology. Airtel Payments Bank, Fino Payments Bank, India Post Payments Bank and Jio Payments Bank are some of the payment banks in India.
Top 10 Private Banks in India (2024)
Here are the top private banks of India as per their market capitalisation on the National Stock Exchange (NSE):
| Rank | Top Private Banks in India | Market Capitalisation |
|---|---|---|
| 1 | HDFC Bank | ₹13.17 trillion |
| 2 | ICICI Bank | ₹9.02 trillion |
| 3 | Axis Bank | ₹3.79 trillion |
| 4 | Kotak Mahindra Bank | ₹3.74 trillion |
| 5 | IndusInd Bank | ₹1.10 trillion |
| 6 | Yes Bank | ₹702.48 billion |
| 7 | IDFC FIRST Bank | ₹549.38 billion |
| 8 | RBL Bank | ₹123.39 billion |
| 9 | Federal Bank | ₹483.41 billion |
| 10 | South Indian Bank | ₹64.15 billion |
Data as of 1st October 2024
1. HDFC Bank
Housing Development Finance Corporation (HDFC) Bank is India’s largest private bank with a market capitalisation (as of 30th September 2024) of ₹13.17 trillion, as per the National Stock Exchange (NSE). HDFC Bank offers a wide range of banking services. They have a well-rooted network and accessible digital banking options for their customers.
As of May 2024, it is the tenth-largest bank by market capitalisation. The CEO of HDFC Bank is Sashidhar Jagdishan.
Here are some of the details about HDFC Bank:
| HDFC Bank | |
|---|---|
| Headquarters | Mumbai, Maharashtra |
| Branches | 8,851 |
| ATMs | 20,938 |
| NPA* rate (as of 30th June 2023) | 1.33% |
*NPA is Non-Performing Assets
2. ICICI Bank
Industrial Credit and Investment Corporation of India (ICICI) Bank is a multinational bank, headquartered in Mumbai, Maharashtra. They are involved in many personal and business banking products and services, including accounts, deposits, cards, loans and insurance. The CEO of ICICI Bank is Sandeep Bakshi.
The parent company of ICICI Bank is ICICI which was founded in 1955. It even has subsidiaries in Canada and the United Kingdom.
Below are some of the details regarding ICICI Bank:
| ICICI Bank | |
|---|---|
| Headquarters | Mumbai, Maharashtra |
| Branches | 6,587 |
| ATMs | 17,102 |
| NPA rate (as of 30th June 2024) | 2.15% |
3. Axis Bank
It is India’s third-largest private banks and was previously known as Unit Trust of India (UTI) Bank. Later on, it was renamed as ‘Axis Bank’. It is a major player in digital payment services, offering services like mobile wallets and online banking. It is even a participant in the central bank’s National Electronic Funds Transfer (NEFT) enabled participating banks list.
Axis Bank has international branches in Dubai, Shanghai, Hong Kong, Dubai and Colombo.
Here are some of the details about this bank:
| Axis Bank | |
|---|---|
| Headquarters | Mumbai, Maharashtra |
| Branches | 5,377 |
| ATMs | 16,026 |
| NPA rate (as of 30th June 2024) | 1.54% |
4. Kotak Mahindra Bank
Kotak Mahindra Bank is subsidiary of Kotak Mahindra Group. This bank is known for its innovative digital banking services, mobile banking app, and online platforms that help their customers to manage their accounts and perform financial transactions easily. With over 1,700 branches and almost 3,000 ATMs, the bank has a strong presence across India.
Here are some of the details about Kotak Mahindra Bank:
| Kotak Mahindra Bank | |
|---|---|
| Headquarters | Mumbai, Maharashtra |
| Branches | 1,780 |
| ATMs | 2,963 |
| NPA rate (as of 30th June 2024) | 1.39% |
5. IndusInd Bank
Founded in 1994, IndusInd Bank is one of the newer-generation private sector banks in India. Its banking system is focused on lending, with a concentration on the retail and corporate segments.
Here are some of the details about IndusInd Bank:
| IndusInd Bank | |
|---|---|
| Headquarters | Mumbai, Maharashtra |
| Branches | 3,013 |
| ATMs | 2,988 |
| NPA rate (as of 30th June 2024) | 2.02% |
6. Yes Bank
Yes Bank is a private banking and financial services company based out of Mumbai. One of the unique aspects of Yes Bank is its focus on technology and innovation. It was the first bank in India to introduce mobile banking and internet banking, allowing customers to manage their accounts online.
It has also partnered with fintech companies to offer digital payment solutions and has invested in blockchain technology to improve security and efficiency. Additionally, they have a strong presence in rural India, with a wide network of branches and ATMs.
Here are some of the details about Yes Bank:
| Yes Bank | |
|---|---|
| Headquarters | Mumbai, Maharashtra |
| Branches | 809 |
| ATMs | 925 |
| NPA rate (as of 30th June 2024) | 1.70% |
7. IDFC FIRST Bank
One of its distinct features of this bank is that it was one of the first banks to provide monthly credit on the basis of a customer’s savings account.
Infrastructure Development Finance Company (IDFC) FIRST Bank even partnered with India’s largest private sector lender, ICICI Bank to expand its already vast network.
Given below are the essential details about IDFC FIRST Bank:
| IDFC FIRST Bank | |
|---|---|
| Headquarters | Mumbai, Maharashtra |
| Branches | 809 |
| ATMs | 925 |
| NPA rate (as of 30th June 2024) | 1.90% |
8. RBL Bank
Ratnakar Bank Limited (RBL) was incorporated in Kolhapur, Maharashtra in 1943. The Reserve Bank of India Act, 1934 recognised it as a scheduled commercial bank in 1959. It was also known as the ‘NH4 Bank’ since most of its banking operations were around the National Highway 4 which connected 10 of the most populated cities in India.
Now let’s know more about this bank:
| RBL Bank | |
|---|---|
| Headquarters | Mumbai, Maharashtra |
| Branches | 1.261 |
| ATMs | 398 |
| NPA rate (as of 30th June 2024) | 2.69% |
9. Federal Bank
Federal Bank has been standing tall since before India’s independence. It is a major Indian commercial bank, headquartered in Kerala. It was established on April 23, 1931 as the Travancore Federal Bank Limited. Later on in December 1949, the bank was renamed as ‘Federal Bank Limited’.
It was even awarded as the ‘Best Workplaces for Women’ in 2023.
Here are some of the details about the Federal Bank:
| Federal Bank | |
|---|---|
| Headquarters | Aluva, Kerala |
| Branches | 1,504 |
| ATMs | 2,015 |
| NPA rate (as of 30th June 2024) | 2.29% |
10. South Indian Bank
This bank was actually founded in the Swadeshi movement. Founded in 1946 by the RBI Act, it was one of the first scheduled banks of India.
South indian Bank was also one of the first bank to open a currency chest on behalf of the central bank of India in 1992.
Here are the details about the South Indian Bank:
| South Indian Bank | |
|---|---|
| Headquarters | Thrissur, Kerala |
| Branches | 948 |
| ATMs | 1,322 |
| NPA rate (as of 30th June 2024) | 4.50% |
Note: All NPA rates are gross annual rates.
Wrapping Up
Private banks in India are some of the most important players in the financial industry. Not only do they drive growth through innovative solutions but also they are keen towards customer service. So, now you know the top private banks of India.
FAQs
What are the top 10 private banks in India for 2024?
The top banks include HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, IndusInd Bank, Yes Bank, IDFC FIRST Bank, RBL Bank, South Indian Bank and Federal Bank.
How are private banks different from public banks?
Private shareholders own private banks, while public banks are government-owned. Their major focus is on profit maximisation and customer service.
What types of services do private banks offer?
Private banks many services such as savings accounts, loans, credit cards and investment products. They even offer international services such as Non-Resident Indian (NRI) deposit accounts and currency exchange facilities.
Which private bank has the highest market capitalisation?
HDFC Bank currently holds the highest market capitalisation among private banks in India. As per the National Stock Exchange, its market capitalisation (as of 30th September 2024) was ₹13.17 trillion.
What are the top 5 private banks in India?
The top 5 private banks are HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and IDBI Bank.
Which private bank has the most ATMs in India?
HDFC Bank has the highest number of ATMs in India, with over 20,565 ATMs nationwide.
Which private bank is the oldest in India?
Federal Bank, founded in 1931, is one of the oldest private banks in India.
Interested in how we think about the markets?
Read more: Zen And The Art Of Investing
Watch here: Is UPI Killing the Toffee Business?
