A Look at the Top 10 Commercial Banks in India

Summary: Commercial banks play a crucial role in the Indian economy by performing various functions contributing to economic development. Here's a look at India's top 10 commercial banks as per market capitalisation. 

Commercial banks are financial institutions that provide various services like loans, savings bank accounts, and bank overdraft facilities, among others, to customers, including individuals and businesses. They play a crucial role in India’s financial ecosystem by creating capital and liquidity in the market. Read on to know the top 10 commercial banks in India.

Basis of classification

To find out the top 10 commercial banks, we have considered the bank’s market capitalisation or market cap. Market cap refers to a company’s aggregate value based on its present share price multiplied by the total number of outstanding stocks. 

Outstanding stocks refer to the total number of stocks owned by the investors. So, if the current price of a company’s stock is INR 100 and it has 1000 outstanding shares, its market cap would be INR 1 lakh (100 x 1000).

Top 10 commercial banks in India

Based on market cap as of 16th October 2023 (15:39 hrs), here are the top 10 commercial banks in India:

  • HDFC Bank

HDFC Bank occupies the pole position among the top 10 commercial banks in the country with a market cap of INR 1,1,62,572.13 crore. Established in 1994, HDFC has emerged as one of India’s largest commercial banks. It has played a pivotal role in the Indian banking landscape by offering a comprehensive suite of products and services, including retail banking and corporate banking. 

The bank is known for its customer-centric approach and leveraging technology to provide seamless and innovative banking solutions.

  • ICICI Bank Ltd

Next on the list is ICICI Bank Ltd. With a market cap of INR 6,65,297.76 crore, ICICI Bank Ltd is one of India's leading private sector banks. Like HDFC Bank, ICICI Bank was also established in 1994 and offers a comprehensive suite of financial products to a diverse customer base, including retail and corporate clients.

The bank was the first bank in India to provide Internet banking facilities to customers and is known for its commitment to customer satisfaction. 

  • State Bank of India

The banker to every Indian, State Bank of India or SBI, as it’s commonly known, is India’s largest and oldest public sector bank. With a market cap of INR 5,13,789.90 crore, SBI has evolved over centuries through various mergers and rebranding efforts. Its extensive network of branches in India and globally positions it as an essential player in the country’s banking segment.

SBI offers a diverse range of products and services to its customers. With digital transformation and innovation, it continues to be the cornerstone of the nation’s financial landscape. 

  • Kotak Mahindra Bank Ltd

Kotak Mahindra Bank Ltd was established in 1985 by Uday Kotak. With a market cap of INR 3,49,501.07 crore, the bank has experienced high growth over the years. An essential player in India’s banking ecosystem, it provides several services such as corporate banking, retail banking, and wealth management.

Kotak Mahindra Bank Ltd is known for its sound financial management and innovative customer service, which have contributed significantly to its growth. 

  • Axis Bank Ltd

Established in 1993, Axis Bank Ltd has grown from strength to strength thanks to its technological innovation and user-friendly banking services. With a market cap of INR 3,10,031.37 crore, the bank has constantly come up with new-age products to meet customers' needs.

It has a strong mobile banking platform and a nationwide network of branches and ATMs. Over the years, Axis Bank Ltd has emerged as a strong player in the ever-evolving financial landscape of India.

  • IndusInd Bank Ltd

Established in 1994, IndusInd Bank Ltd offers individuals and businesses a wide range of banking services. With a market cap of INR 1,12,692.36 crore it has slowly evolved as one of the country's foremost commercial private banks. Like other banks in this list, IndusInd Bank is known for its customer-centric approach and technological prowess.

Over the years, it has consistently focussed on digital banking to provide a seamless experience to its customers and streamline operations. With a strong presence, IndusInd Bank Ltd continues to enjoy customers' trust for their financial needs.

  • Bank of Baroda

Bank of Baroda has a rich history of over 100 years. It was established in 1908 and, over the years, has evolved as one of the top commercial banks in India with its widespread network of branches. The bank has a market cap of INR 1,06,297.35 crore and caters to the diverse needs of individuals, corporates, and businesses.

It offers a range of retail banking and corporate solutions, and its pivot towards digital transformation in recent years has significantly enhanced its operational efficiency. 

  • Punjab National Bank

Punjab National Bank, or PNB, commonly referred to, was established in 1894. Over the years, PNB has evolved as one of the most trusted financial institutions in the country, with a market cap of INR INR 83,188.32 crore. PNB has significantly contributed to the country's economic development by supporting agriculture and small and mid-sized businesses.

It has consistently focussed on technological innovation to boost customer experience by adopting digital banking solutions and online services to meet modern customers' growing and changing demands. 

  • Indian Overseas Bank

Indian Overseas Bank, or IOB, is a prominent commercial public sector bank established in 1937. With its headquarters in Tamil Nadu, the bank is recognised for its services to underserved segments of society. With a market cap of INR 82,981.59 crore over the years, the bank has adapted to the country’s economic landscape.

It has embraced technological advancements to offer various banking products and services. As a top commercial bank, it has been pivotal in fulfilling the government’s socio-economic objectives.

  • Union Bank of India

Last on our list is the Union Bank of India. Established in 1919, the bank has a market cap of INR 78,201.33 crore. With a strong foundation built on trust, integrity, and customer-centricity, the bank has been at the forefront of technological adoption. Like others, the bank offers various innovative products and services, including retail and corporate banking.

Summing it up

Whether you are an individual or a business, you can reach out to any of these commercial banks for your banking needs and fulfill your goals with ease. Happy banking!

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