List of Top Private Banks in India | Customer-Rated (2024)

Home » Personal Finance » Banking Brilliance: A Closer Look at Top Private Banks in India

Private banks are institutions predominantly owned by private individuals and corporations. These banks are registered under the Indian Companies Act and follow the rules and regulations of the Reserve Bank of India. They provide various banking and financial services, such as retail banking, corporate banking, wealth management, insurance, and more. They are known for their quick and efficient services, innovation, and customer-centric approach. However, they also charge higher fees and interest rates than public sector banks.

How many private banks are in India?

As of March 2023, there are 21 private banks in India.

List of Private Banks in India

• Axis Bank

• Bandhan Bank

• CSB Bank

• City Union Bank

• DCB Bank

• Dhanlaxmi Bank

• Federal Bank

• HDFC Bank

• ICICI Bank

• IDBI Bank

• IDFC First Bank

• IndusInd Bank

• Jammu and Kashmir Bank

• Karnataka Bank

• Karur Vysya Bank

• Kotak Mahindra Bank

• Lakshmi Vilas Bank

• Nainital Bank

• RBL Bank

• South Indian Bank

• Yes Bank

Best Private Banks in India Based on Market Capitalisation

Here is a table for the top 10 banks in India based on their market capitalisation as of December 2023:

The data in the above sheet is taken from BSE- 11th Dec 2023.

Overview: Exploring the details of the Best Private Banks in India

Here’s a rundown of the top 10 private sector banks in India and their key figures:

1. HDFC Bank

HDFC Bank was set-up in 1994 as a subsidiary of Housing Development Finance Corporation (HDFC). It is India’s largest private sector bank based on market capitalisation and assets. It tops the list of best private banks in India.

• On April 4, 2022, a significant merger was announced between HDFC Limited, India’s largest Housing Finance Company, and HDFC Bank, the country’s largest private sector bank.
• HDFC Ltd, with a 45-year history, has become a housing finance leader through its exceptional product offerings, while HDFC Bank plays a crucial role in providing seamless home loans across urban, semi-urban, and rural India.

HDFC Bank’s Reach

• Seamless home loan services are provided by HDFC Bank across urban, semi-urban, and rural areas.
• The bank boasts an extensive network with 7,945 branches and 18,183 ATMs/Cash Recycler Machines in 2,488 cities/towns as of September 30, 2023.

2. ICICI Bank

ICICI Bank is one of the well-known best private banks that offers personal and business banking products and services, such as accounts, deposits, cards, loans, insurance, and investment products. Founded in 1994, it emerged as a subsidiary of the ICICI (Industrial Credit and Investment Corporation of India), a development finance institution.

Key Highlights of ICICI Bank as of March 31, 2023:

• Expanded Network: ICICI Bank added approximately 480 branches during FY2023, resulting in a robust network of 5,900 branches.
• ATM Network: The bank’s widespread presence includes 16,650 ATMs and cash recycling machines as of March 31, 2023.
• Digital Adoption: The mobile banking app iMobile Pay attracted around 90 lakh activations from non-ICICI Bank account holders by the end of March 2023, showcasing a significant digital adoption trend.

3. Kotak Mahindra Bank

It ranks third on the list of the best private banks in India that provide comprehensive banking and financial solutions, such as savings and current accounts, deposits, cards, loans, mutual funds, insurance, etc. It was founded in 2003 as a result of the merger of Kotak Mahindra Finance Limited, a non-banking finance company, and two Kotak Group companies.

Key Highlights of Kotak Mahindra Bank as of March 31, 2023

• Nationwide Presence: Kotak Mahindra Bank boasts a national footprint with 1,780 branches and 2,963 ATMs, including branches in GIFT City and DIFC (Dubai).
• Robust Financial Performance:
  • Operating Profit: The operating profit for FY23 surged to ₹14,848 crores, marking a significant 23% year-on-year increase from ₹12,051 crores.
  • Q4FY23 Operating Profit: In Q4FY23 alone, the operating profit reached ₹4,647 crores, demonstrating an impressive 39% year-on-year growth from ₹3,340 crores in Q4FY22.
• Customer Growth: The customer base, as of March 31, 2023, reached 41.2 million, compared to 32.7 million as of March 31, 2022.

4. Axis Bank

Axis Bank, established in 1993 as UTI Bank, is one of the largest private banks in India. Offers numerous banking and financial solutions, including personal banking and business banking.

Here are some key highlights of its Q4FY2023 performance:

1. Robust Financial Performance:
   • Profit After Tax (PAT) for Q4FY23 reached `6,625 crores, marking a significant 61% YoY growth.
   • Core Operating Profit grew impressively by 46% YoY, reflecting strong financial fundamentals.
   • Net Interest Income increased by 33% YoY, with Net Interest Margin at 4.22%.
2. Steady Loan Portfolio Expansion:
   • Advances showed robust growth, with a 19% YoY increase and an 11% QoQ growth.
   • Retail loans, including rural and card advances, exhibited substantial growth of 22% YoY and 14% QoQ.
3. Dependable Deposit Growth:
   • Deposits demonstrated a healthy growth of 15% YoY and 12% QoQ.
   • Savings Account (SA) and Current Account (CA) recorded strong growth rates of 23% and 17% YoY, respectively.
4. Digital Leadership and Innovation:
   • Axis Bank maintains a strong position in the Payments and Digital space, acquiring 1.13 million credit cards in Q4FY23.

5. IndusInd Bank

IndusInd Bank stands out as a prominent financial services brand in India, serving as the trusted banking solutions provider for around 37 million customers nationwide. This includes individuals, large corporations, government entities, and PSUs.

IndusInd Bank Highlights as of September 30, 2023:

• Expanded Network: The bank’s reach has increased, with 2631 branches and banking outlets and 2903 ATMs.
• Growing Client Base: The bank’s customer base has reached an impressive 37 million as of September 30, 2023.
• Profit Surge: IndusInd Bank witnessed a 22% year-on-year growth in net profit, reaching ₹2,202 crores from ₹1,805 crores.
• Deposit Growth: Deposits experienced a substantial 14% year-on-year increase, reaching ₹3,59,548 crores from ₹3,15,532 crores.

6. IDBI Bank

Established in 1964, IDBI Bank started as a development finance institution and transitioned into a full-fledged commercial bank in 2004. It offers a range of products, including savings accounts, loans, and internet banking.

As of the financial year ending 2023, the bank operates through a network of 1,928 branches and 3,334 ATMs strategically positioned across the country.

Financial Summary (FY23 vs FY22):

1. Total Assets (INR billion):
   1. FY23: 3,305.02
   2. FY22: 3,016.03
2. Total Equity (INR billion):
   1. FY23: 453.18
   2. FY22: 416.62
3. Net Profit (INR billion):
   1. FY23: 36.45
   2. FY22: 24.39
4. Return on Assets (%):
   1. FY23: 1.2
   2. FY22: 0.8

IDBI Bank’s financial performance in FY23 reflects a notable increase in total assets, total equity, and net profit.

7. IDFC First Bank

Formed in 2018 by merging IDFC Bank and Capital First, IDFC First Bank is a private sector bank providing comprehensive personal and business banking solutions, such as loans, mutual funds, and insurance

Performance Highlights as of Sep 2023

• Deposit Surge: Total Customer Deposits increased 4X, from Rs. 39,602 crores at the merger (December 31, 2018) to Rs. 1,64,726 crores as of September 30, 2023.
• Expanded Reach: Established 862 branches and 1,111 ATMs to support the strategic transformation.

Financial Performance

• Profitability: Recorded a Profit After Tax (PAT) of Rs. 1,516 crores (~US$ 185 million) in H1-FY24.
• Capital Strength: Maintained a robust Capital Adequacy Ratio of 18.06%, including a Rs. 3000 crore infusion of fresh equity capital in October 2023.
• Overall NPA Metrics: Considering the infrastructure sector, the overall Gross NPA is 2.11%, and Net NPA is 0.68%, showcasing a healthy financial portfolio.

8. Yes Bank

It ranks eighth on the list of 10 best private banks in India that offer multiple banking and financial services, such as current and savings accounts, loans, deposits, cards, remittances, wealth management, etc. It was founded in 2004 and is one of the largest private banks in India. It has a network of over 1,100 branches and 1,800 ATMs across the country. It was founded in 2004 and is one of the largest private banks in India. It has a network of over 1,100 branches and 1,800 ATMs across the country.

Specialised Services

• YES GRACE Branches: Tailored for women, these branches, staffed entirely by women YES BANKers, provide unique products and a welcoming environment.
• YES SME Branches: With over 30 branches, these cater to Small and Medium Enterprises, offering specialised services, custom products, faster processing, and dedicated Relationship Managers, contributing to the ‘Make In India’ campaign.

Financial Performance – Q1 FY 2023-24: Key Highlights

• Operating Profit: ₹818 Cr
• Total Deposits: ₹2,19,369 Cr

9. AU Small Finance Bank

Originally established in 1996 as a non-banking finance company, AU Small Finance Bank focuses on serving underserved segments, offering products like savings accounts, loans, and digital banking. It converted into a small finance bank in 2017.

Starting its banking operations in April 2017, AU Bank has expanded its footprint to 1,038 touchpoints.

It caters to a vast customer base of over 41.3 Lac across 21 States & 3 Union Territories, supported by a dedicated workforce of 28,446 employees.

Financial Snapshot (As of June 30, 2023):

• AU Bank exhibits a robust financial standing with a net worth of ₹11,379 Crore.
• It has built a substantial deposit base amounting to ₹69,315 Crore, coupled with Gross Advances reaching ₹63,635 Crore.
• The bank maintains a healthy Balance sheet size, tallying up to ₹91,583 Crore.

10. Bandhan Bank

Founded in 2001 as a microfinance institution, Bandhan Bank became a private sector universal bank in 2015. It concentrates on serving low-income and rural customers, especially women, through various banking products and services.

Bandhan Bank Achievements (as of June 28, 2023):

1. Bandhan Bank has tripled its branch presence, now boasting over 1,500 branches in under 8 years.

2. With 6,000+ outlets, including 4,500 banking units, Bandhan Bank ensures widespread accessibility to its services across the country.

3. The bank has successfully catered to over 3 crore customers, showcasing its wide-reaching impact on the national scale.

Which is the Largest Private Bank in India?

HDFC Bank is the largest private bank in India.

HDFC Bank, reporting a robust revenue of ₹66,317 crore for the quarter ending September 30, 2023, maintains a widespread presence with 7,945 branches and 18,183 ATMs. Serving over 8.9 crore customers, HDFC Bank continues to be a key player in the banking industry.

Other Types of Banks in India

The following are the main types of banks in India:

• Central Bank

The Reserve Bank of India is the central bank of the country, which regulates the banking system and the monetary policy. It acts as the banker’s bank, the government’s bank, and the supervisor of the financial system. It also issues currency and controls the foreign exchange reserves.

• Commercial Banks

These are the banks that provide banking services to the general public and the business sector. They accept deposits, lend money, transfer funds, issue drafts, and offer other financial products and services. They are further divided into public sector banks, private sector banks, foreign banks, regional rural banks, and local area banks.

• Cooperative Banks

These are the banks that are organised and operated on the principle of cooperation and mutual help. They provide credit and banking facilities to the rural and agricultural sector, small businesses, and low-income groups. They are regulated by the state governments and the RBI. They are classified into urban cooperative banks and rural cooperative banks.

• Small Finance Banks

These are the banks that cater to the financial needs of the unserved and underserved sections of society, such as small farmers, micro and small enterprises, and low-income households. They provide basic banking services, such as deposits, loans, remittances, and payments. They are licensed and regulated by the RBI.

• Payments Banks

These are the banks that offer limited banking services, such as accepting deposits up to Rs. 2 lakh, issuing ATM cards, and facilitating digital transactions. They do not provide lending services or credit cards. They mainly target migrant workers, low-income households, and small businesses. They are licensed and regulated by the RBI.

• Specialized Banks

These are the banks that focus on specific sectors or activities, such as industrial development, export-import, housing, infrastructure, etc. They provide long-term finance, technical assistance, and advisory services to their clients. They provide long-term finance, technical assistance, and advisory services to their clients. Some examples of specialised banks are the Industrial Development Bank of India (IDBI), the Export-Import Bank of India (EXIM), the National Housing Bank (NHB), the NABARD-National Bank for Agriculture and Rural Development, etc.

Difference between Public and Private Sector Banks

Public sector banks are the banks whose majority of the stake is held by the government, either central or state. They are controlled and managed by the government, focusing on broader social responsibility and aiming to promote financial inclusion and public welfare.

• They offer lower interest rates on loans and higher interest rates on deposits.
• They have a large customer base and a wide network of branches and ATMs nationwide. They also provide banking services to the rural and remote areas.

However, they also face some challenges, such as low profitability, high non-performing assets, bureaucratic interference, and slow decision-making.

Private sector banks are the banks whose majority of stake is held by private individuals and corporations. They are registered under the Indian Companies Act and have more autonomy in their operations.

• They have a profit-oriented approach and aim to provide competitive and innovative services to their customers.
• They offer higher interest rates on loans and lower interest rates on deposits.

However, they also have some advantages, such as high efficiency, low non-performing assets, quick decision-making, and merit-based promotion.

The following table summarises the difference between public and private sector banks:

Difference between Public and Private Sector Banks

Conclusion

In a dynamic Indian banking environment, the top private banks showcase innovation, efficiency, and customer-centricity. While public sector banks emphasise social responsibility, private banks lead in agility and modern services, offering diverse options for individuals and corporations. Ensure you check their serviceability before opening an account at one of the top private banks in India.

FAQs| Top Private Banks in India

Source- moneycontrol.com

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