The private sector banks are the ones in which the majority of the equity or shares is held by private shareholders and not the government. After the liberalization of the banking policy during the 1990s, the emergence and growth of private sector banks started. In the decades that have passed, these banks have grown rapidly through the use of advanced technology, latest monetary techniques and tools, and offering contemporary innovations. Here is a list and a brief overview about some of the private banks in India.
The private sector banks are divided into two groups, the old and the new, by the financial regulators of the country. The old private sector banks are the ones that existed before nationalization in the year 1969, and they maintained their independence because they were still too small to get nationalized. The new private sector banks are the ones that received their baking license after the liberalization of the 1990s.
List of Top Private Banks in India – Private Sector Banks:
There are twenty-two private banks and four local area private banks in the country. Though the public sector banks enjoy the majority of the market share, the private banks are also not too far behind. The private banks have the total market share of 19.7%, with an ever-increasing number of customers relying on them. Out of the major private banks that operate in India, the following are the eight that standout from the rest in terms of assets and market capitalization.
1. HDFC Bank Limited:
Housing Development Finance Corporation Bank Limited is the largest private sector bank in the country. Its headquarters are in Mumbai, Maharashtra. Some of the top services and products offered by the bank include wholesale banking, treasury, retail banking, auto loans, personal loans, and two wheeler loans, loans against property, lifestyle loan, consumer durable loan, and credit cards. In the year 2000, HDFC merged with Times Bank, and this was the first merger of two major private banks in the New Generation private sector banks section.
2. ICICI Bank:
ICICI Bank Limited is an Indian multinational financial and banking services company that has its headquarters in Mumbai, Maharashtra and its registered office is in Vadodara, Gujarat. In terms of market capitalization and assets, ICICI Bank is the second largest bank in the country as of the year 2018. It provides the widest range of financial services and banking products for retail and corporate customers through a range of specialized subsidiaries and delivery channels, in the areas of non-life insurance, investment banking, asset management, and venture capital.
3. Axis Bank:
Axis Bank is the third largest private sector bank in the country, with its headquarters in Mumbai, Maharashtra. Presently, the bank has over 4000 branches, 11,800 ATMs, and 4,920 cash recyclers spread across India. As on 31st March 2018, the bank had a market capitalization of over INR1.31 trillion. The bank offers a host of amazing financial products and has served the customers well ever since its inception.
4. Yes Bank:
Yes Bank Limited, founded by Ashok Kapur and Rana Kapoor in 2004, is the fourth largest private sector bank of the country. It is primarily operational as a corporate bank and retail bank, and it also offers asset management as its subsidiary functions. Most of the revenues of the bank are derived through syndicated loans and corporate banking. It functions as three entities, namely, Yes Bank, Yes Asset Management Services, and Yes Capital.As on January 2019, the bank had 1, 150 branches and over 1800 ATMs spread all over the country.
5. Kotak Mahindra:
Kotak Mahindra Bank, the flagship company of the Kotak Mahindra Finance Ltd., received its license for operating from the Reserve Bank of India in the year 2003. It offers the widest range of financial services and banking products, in the areas of wealth management, life insurance, general insurance, investment banking, and personal finance. It is also important to keep in mind that, in terms of market capitalization, as seen on April 2019, it is one of the top five private sector banks in the country.
6. IndusInd Bank:
IndusInd Bank Limited, a Mumbai based bank, was inaugurated in 1994 by Manmohan Singh, the then Finance Minister. The bank offers transactional,commercial, and electronic banking products. It has specialization in retail banking services and the introduction of new technologies helps it in continuously upgrading the support systems and services. It has more than 1550 branches and 2450 ATMs spread across different parts of the country. It has the maximum branches in Chennai, New Delhi, and Mumbai, and it representative offices are also present in Dubai, Abu Dhabi, and London.
7. IDFC First Bank:
IDFC First Bank is the Indian banking company and it has its headquarters in Mumbai, Maharashtra. It started its operations on 1st October 2015, and forms a part of IDFC, which is an integrated infrastructure financing company. The bank serves private and corporate customers in the country, including the infrastructure sector that it specializes in, right from its founding years. It also offers services to the self-employed and the people residing in rural areas. In addition to that, it is first bank in the country to start an Aadhaar linked cashless trade solution.
8. Federal Bank:
Federal Bank is the scheduled commercial bank with its headquarters situated in Aluva, Kochi. The international representative offices of the bank are located at Dubai and Abu Dhabi. It has a huge customer base of over eight million, which includes 1.2 million NRIs, and an extensive network of remittance partners from all over the world. It claims to handle nearly fifteen percent of the inward remittances of India, which is a major feat to achieve by a private bank.
Final Words
So, these are the top eight private sector banks in India which have made their place felt in the economy of the country. With further advancement of technology and improved services, these banks will hopefully develop more in the times to come.
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