By market cap, the top banks in India are the State Bank of India (SBI). SBI currently has a market cap of around 726.7-billion USD. It is one of India’s largest banks by assets and ranks second by market cap only to the SBI.
The Indian banking system has been one of the most respected in the world. It ranks among the best when it comes to retail banking, corporate banking, and private banking, and among the biggest when it comes to wholesale banking. It also has an extensive presence in corporate banking, private banking, and public-private partnership banking.
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Top banks in India by market cap
There are a number of banks in India including State Bank of India, HDFC Bank, ICICI Bank, and Axis Bank. These banks have a combined market cap of Rs 3,126,274 crore as of September 2018. India’s banking sector is worth $2.77 trillion as of September 2018 and has a current-account deficit of Rs 5.5 trillion.
Following are the top 10 banks in India by Market Cap:
SBI
SBI owns a 4.65 trillion INR Market capitalization. State Bank of India (SBI) is an Indian multinational public sector bank and statutory organization for financial services located in Mumbai, Maharashtra. SBI is the world’s 43rd largest bank, ranking 221st on the Fortune Global 500 list of the world’s largest firms in 2020, and the only Indian bank on the list. It is India’s largest bank and a public sector bank, with a 23 percent market share by assets and a 25 percent share of the overall loan and deposit market. With approximately 250,000 people, it is also India’s sixth largest employer.
The bank is descended from the Bank of Calcutta, which was created in 1806 through the Imperial Bank of India, making it the Indian Subcontinent’s oldest commercial bank. The Bank of Madras combined with British India’s other two presidential banks, the Bank of Calcutta and the Bank of Bombay, to establish the Imperial Bank of India, which later became the SBI in 1955. Over the course of its 200-year existence, the bank has been founded via the merger and purchase of over twenty institutions. In 1955, the Government of India assumed control of the Imperial Bank of India, with the Reserve Bank of India (India’s central bank) acquiring a 60% interest and renaming it the State Bank of India.
BANK OF BARODA
Bank of Baroda owns a 611.51 billion INR Market capitalization. On July 20, 1908, the Maharaja of Baroda, Maharaja Sayajirao Gaekwad III, established the bank. The bank, along with 13 other major commercial banks in India, was nationalized by the Government of India on July 19, 1969, and is now a profit-making public sector venture (PSU).
Sayajirao Gaekwad III founded the Bank of Baroda (BoB) in 1908, along with other industrial titans such as Sampatrao Gaekwad, Ralph Whitenack, Vithaldas Thakersey, Tulsidas Kilachand, and NM Chokshi. BoB opened its first branch in Ahmedabad two years later. Domestically, the bank expanded until after World War II. Then, in 1953, it crossed the Indian Ocean to serve the populations of Indians in Kenya and Uganda by opening branches in Mombasa and Kampala, respectively.
The next year, it launched a second branch in Kenya, in Nairobi, and a branch in Tanzania, in Dar-es-Salaam, 1956. Then, in 1957, BoB made a significant international move by opening a branch in London. London was the heart of the British Commonwealth and the world’s most significant financial city. BoB purchased Hind Bank (Calcutta; founded 1943) in 1958, becoming the bank’s first domestic acquisition.
CANARA BANK
CANARA BANK owns 408.27 billion INR Market capitalisation. On July 1, 1906, philanthropist Ammembal Subba Rao Pai created the Canara Hindu Permanent Fund in Mangalore, India.
Canara Bank made its first acquisition in 1961 when it purchased Bank of Kerala. This company was started in September 1944 and had three branches at the time of its takeover on May 20, 1961. Canara Bank’s second acquisition was Seasia Midland Bank (Alleppey), which was founded on July 26, 1930 and had seven branches at the time of the transaction.
PNB
Punjab National Bank(PNB) owns a 367.77 billion INR Market capitalization. The Punjab National Bank (PNB), India’s first Swadeshi bank, began operations from Lahore on April 12, 1895, with an authorized capital of 2 lac and working capital of 20,000. The bank was founded in the spirit of nationalism and was the first bank controlled entirely by Indians with Indian capital. During the Bank’s lengthy history, 9 banks have merged or amalgamated with PNB.
PNB is the country’s second largest Public Sector Bank (PSB), with a Global Gross Business of 19,31,322 Crore. With a 47.43% share, the bank maintains its strength in low-cost CASA deposits. The bank’s priority has been qualitative business development, recovery, and halting new slippages.
IOB
Indian Overseas Bank owns 335.52 billion INR Market capitalisation. On February 10, 1937, Shri. M.Ct.M. Chidambaram Chettyar, a pioneer in several sectors, established Indian Overseas Bank (IOB). He formed the bank with the primary goal of concentrating in foreign exchange business banking and expanding the bank around the globe. IOB began operations concurrently in Karaikudi, Chennai, and Rangoon in Burma (now Myanmar), followed by a branch in Penang, Malaysia.
At the time of independence, IOB had 38 branches in India and 7 branches overseas, with deposits totaling Rs.6.64 crores and advances of Rs.3.23 crores. In 1969, IOB was one of 14 major banks that were nationalized. IOB had 195 branches in India on the eve of nationalization in 1969, with total deposits of Rs.67.70 Cr. and advances of Rs.44.90 Cr. The bank now has a presence in four countries: Singapore, Hong Kong, Thailand, and Sri Lanka.
UNION BANK
Union Bank owns 265.19 billion INR Market capitalization. It is one of the country’s main public sector banks. The bank is a publicly traded company, with the government of India owning 83.50 percent of the entire share capital. The bank, which has its headquarters in Mumbai, India, was established as a limited company on November 11, 1919. Andhra Bank and Corporation Bank were recently merged into Union Bank of India, taking effect from April 1, 2020. Today, it has a network of 8850+ domestic branches, 11200+ ATMs, 8216 BC Points, and 75000+ workers serving over 120 million clients. As of March 31, 2022, the bank’s entire business amounted to Rs.17,48,800 crore, consisting of Rs. 10,32,392 crore in deposits and Rs. 7,16,408 crore in advances.
The bank also has three overseas branches in Hong Kong, Dubai International Financial Centre (UAE), and Sydney (Australia), as well as one representative office in Abu Dhabi (UAE), one banking subsidiary in London (UK), one banking joint venture in Malaysia, four domestic para-banking subsidiaries, three joint ventures (two of which are in the life insurance business), and one associate – Chaitanya Godavari Gramin Bank. Union Bank of India is the country’s first significant public sector bank to adopt a 100% core banking system. The bank has garnered several honors and recognition for its expertise in technology, digital banking, financial inclusion, MSME, and human resource development.
INDIAN BANK
Indian Bank owns 215.96 billion INR Market capitalization. It is a significant nationalized bank. This is owned by the Government of India’s Ministry of Finance. It was founded in 1907 and is located in Chennai, India.
With 39,734 workers, 5,721 branches, 5,428 ATMs, and cash deposit machines, it serves over 100 million clients and is one of India’s top-performing public sector banks. As of March 31, 2022, the bank’s total business had reached 1,010,000 crores (US$130 billion). The bank’s information systems and security practices are ISO27001:2013 certified. It has foreign branches in Colombo and Singapore, as well as Foreign Currency Banking Units in Jaffna and Colombo. It has 227 correspondent banks in 75 different countries. The Government of India has held the bank since 1978.
According to an announcement made by Indian Finance Minister Nirmala Sitharaman on 30 August 2019, Allahabad Bank and Indian Bank will combine on 1 April 2020, making Indian Bank the seventh largest bank in the country.
BANK OF INDIA
Bank of India Ltd owns 199.47 billion INR Market capitalization. The Bank of India was established on September 7, 1906, by a group of prominent merchants from Mumbai. The bank was privately owned and operated until July 1969, when it was nationalized along with 13 other banks.
Beginning with a single office in Mumbai with a paid-up capital of Rs.50 lakh, the bank has grown rapidly over the years to become a formidable organization with a strong national presence and considerable overseas activities. In terms of business volume, the Bank ranks first among nationalised banks.
In India, the bank has about 5000 branches, including specialty branches, distributed throughout all states and union territories. These branches are managed by 59 Zonal Offices and ten NBG Offices. There are 45 foreign branches/offices, including 23 own branches, 1 representative office, 4 Subsidiaries (20 branches), and 1 joint venture.
The bank had its first public offering in 1997, followed by a Qualified Institutions Placement in February 2008. While sticking to strict prudence and cautious policy, the Bank has been at the forefront of developing a variety of new services and technologies. The business has been done with a successful combination of traditional values and ethics with cutting-edge technology. Back in 1989, the bank was the first among nationalized banks to install a fully computerized branch and ATM service at the Mahalaxmi Branch in Mumbai. In addition, the bank is a founding member of SWIFT in India.
CENTRAL BANK
Central Bank Of India owns 157.56 billion INR Market capitalization. The Central Bank of India, founded in 1911, was the first Indian commercial bank that was entirely owned and operated by Indians. The foundation of the bank was the culmination of Sir Sorabji Pochkhanawala’s, the bank’s founder’s, desire. Sir Pherozesha Mehta was the first Chairman of a really Indian bank. Sir Sorabji Pochkhanawala was so proud of the Central Bank of India that he declared it the “property of the nation and the country’s wealth.”
He also stated that the “Central Bank of India survives on the confidence of the people and views itself as the people’s own bank.” Throughout its 109-year existence, the bank has weathered several storms and encountered numerous hurdles. The bank succeeded over its contemporaries in the banking industry by effectively transforming every danger into a commercial opportunity.
Conclusion
The Indian banking industry is on the rise. In 2017, there were over 6,500 banks in the country, with another 1,400 scheduled to open by 2020. Over the next few years, many analysts expect the industry to rise to the top of the global rankings, with the potential to provide a substantial boost to the economy. Five major banks currently dominate the Indian banking industry: State Bank of India, Bank of Baroda, Punjab National Bank, Bank of India, and Central Bank of India, which account for over half of the country’s banking assets.