The banking system in India is a diverse and extensive network that caters to the financial needs of its vast and varied population. With 21 private sector banks, 12 public sector banks, foreign banks, rural banks, cooperative banks, and financial institutions, the sector offers a wide range of services to individuals and businesses alike.
The Reserve Bank of India plays a crucial role in regulating and overseeing the functioning of the banking system. India’s retail credit market ranks fourth among emerging nations, reflecting the country’s economic potential and growth.
To navigate through the plethora of options and find the best private bank in India, it can be overwhelming to individually visit each bank’s website. However, we have curated a list of the top 10 private banks in India. This guide will assist you in identifying the private bank that aligns best with your financial goals and obligations, whether you’re looking to open a bank account, invest in mutual funds, stocks, or recurring deposits.
So, without further ado, here is the list of the top private banks in India, comprising both the best-performing and highest-ranked institutions in the country.
List of Top 10 Private Banks in India
- HDFC Bank
- ICICI Bank
- Kotak Mah. Bank
- Axis Bank
- IndusInd Bank
- IDBI Bank
- IDFC First Bank
- Yes Bank
- AU Small Finance
- Bandhan Bank
Best Private Banks of India by Marketcap (November List)
HDFC Bank
HDFC Bank is an Indian banking and financial services company headquartered in Mumbai. It is the largest private sector bank in India in terms of assets and holds a prominent position as the fourth-largest bank globally by market capitalization as of July 2023. With its extensive reach and comprehensive range of products and services, HDFC Bank has established itself as a key player in the Indian banking sector.
The bank caters to a diverse customer base and offers various financial solutions, including wholesale banking, retail banking, treasury services, loans, credit cards, and digital products. With its customer-centric approach and strong reputation, HDFC Bank continues to be a preferred choice for individuals and businesses seeking reliable and innovative banking services.
- Total Revenue: INR 170,754 Crores
- Market Capitalization (as of 1st November 2023): INR 11,21,442 Crore
- Total Employees: 1,77,000
- NIM: 3.52%
- ATMs: 19,727
- Branches: 8,344
ICICI Bank
ICICI Bank Limited is a prominent Indian multinational bank and financial services company known for its extensive network and wide range of products. Headquartered in Mumbai, the bank caters to the needs of both corporate and retail customers. With branches and ATMs across India and a presence in 17 countries, ICICI Bank showcases its global reach. The bank has played a significant role in shaping India’s financial infrastructure, contributing to the establishment of institutions like the National Stock Exchange and Credit Information Bureau of India Limited (CIBIL). ICICI Bank’s commitment to innovation is evident through its introduction of online services, digital wallets, and other technological advancements. With a strong financial position and a focus on customer-centric solutions, ICICI Bank presents an appealing choice for investors looking for stability and growth opportunities in the banking sector.
- Total Revenue: INR 121,067 crore
- Market Capitalization (as of 1st November 2023): INR 6,41,716 Crore
- Total Employees: 1,30,542
- NIM: 3.92%
- ATMs: 16,731
- Branches: 6004
Kotak Mahindra Bank
Kotak Mahindra Bank Limited, headquartered in Mumbai, is a prominent Indian banking and financial services company known for its extensive range of offerings to corporate and retail customers. With a strong national presence, the bank has solidified its position as one of India’s leading private-sector banks. Throughout its history, Kotak Mahindra Bank has successfully diversified its operations, expanding into areas such as car financing, investment banking, and overseas markets. Notably, it holds the distinction of being the third-best private bank in India. Investors seeking opportunities in the thriving Indian banking sector will find Kotak Mahindra Bank an appealing choice due to its established reputation and commitment to growth and innovation.
- Total Revenue: ₹42,151 crore
- Market capitalization (as of 1st November 2023): ₹3,46,919 Crore
- Total employees: 71,000
- NIM: 4.39%
- ATMs: 2,963
- Branches: 1,780
Axis Bank
Axis Bank, a leading Indian banking and financial services company headquartered in Mumbai, welcomes investors to explore the dynamic opportunities it offers in the thriving Indian market. With a rich history dating back to 1993, Axis Bank has consistently adapted and evolved to become the fourth-largest private sector bank in India.
Offering a comprehensive range of services to large corporations, SMEs, and retail businesses, the bank has established a strong presence both domestically and internationally. With a network of thousands of branches and ATMs, Axis Bank is well-equipped to meet the diverse financial needs of its customers. As a forward-thinking institution, Axis Bank continues to drive innovation, foster strategic partnerships, and maintain a customer-centric approach, making it an attractive investment prospect in the ever-expanding Indian banking landscape.
- Total Revenue: INR 87,448 crore
- Market Capitalization (as of 1st November 2023): INR 3,03,001 Crore
- Total Employees: 91,898
- NIM: 3.26%
- ATMs: 15,953
- Branches: 4,903
IndusInd Bank
IndusInd Bank Limited is a prestigious Indian financial services provider headquartered in Mumbai. Established in 1994, it has garnered a strong reputation in the retail banking sector. With a focus on innovation and customer-centric services, the bank offers a comprehensive range of financial solutions. Led by a capable management team, including Managing Director and CEO Sumant Kathpalia, and backed by a distinguished board of directors, IndusInd Bank has gained recognition as the fifth-best private bank in India. Investors seeking an opportunity to be part of a dynamic and forward-thinking institution should consider the potential offered by IndusInd Bank.
- Total Revenue: INR 36,368 crore
- Market Capitalization (as of 1st November 2023): INR 1,12,839 crore
- Total Employees: 33,582
- NIM: 4.28%
- ATMs: 1055
- Branches: 573
IDBI Bank
IDBI Bank Limited (IDBI Bank) presents a compelling investment opportunity for those seeking to capitalize on the dynamic financial sector. As a development finance institution with a rich history dating back to 1964, IDBI Bank has evolved into a robust banking entity under the ownership of the Life Insurance Corporation of India and the Government of India. With its recent exit from Prompt Corrective Action (PCA) in March 2021, IDBI Bank has positioned itself for significant growth and profitability. The bank boasts an extensive network of branches, ATMs, and e-lounges, ensuring broad market reach and accessibility. Moreover, IDBI Bank’s strategic collaborations and instrumental role in establishing influential institutions like the National Stock Exchange of India and the Securities and Exchange Board of India highlight its significant contributions to India’s financial landscape. Investors can tap into the immense potential of IDBI Bank as it charts a promising trajectory within the banking industry.
- Total Revenue: INR 20,592 crore
- Market Capitalization: INR 66,495 crore
- NIM: 3.45%
- ATMs: 3683
- Branches: 1892
IDFC First Bank
IDFC First Bank, a leading private sector bank in India, has rapidly transformed its operations and achieved significant milestones since its inception. With a strong focus on retail banking and a commitment to delivering exceptional financial products and services, IDFC First Bank stands out as an attractive investment opportunity. The bank’s merger with Capital First has positioned it as a pioneer in the industry, offering unique features such as monthly interest credit on savings accounts and lifetime free credit cards with low annual percentage rates.
By leveraging its extensive branch network and expanding its customer base, IDFC First Bank has successfully transitioned into a retail-focused institution, driving growth and profitability. With a dedicated philanthropic initiative and a strategic vision for the future, IDFC First Bank presents a promising prospect for investors seeking to capitalize on India’s dynamic banking sector.
- Total Revenue: INR 22,728 crore
- Market Capitalization: INR 58,361 crore
- NIM: 5.26%
- ATMs: 732
AU Small Finance Bank
AU Small Finance Bank Limited is a leading Indian small finance bank based in Jaipur. With a strong foundation as a vehicle finance company, it has successfully transitioned into a small finance bank, catering to the financial needs of low and middle-income individuals as well as micro and small businesses. The bank is committed to serving those who have limited or no access to formal banking and finance channels, providing them with a wide range of loan, deposit, and payment products and services. Led by visionary founder Sanjay Agarwal, AU Small Finance Bank has garnered recognition for its exceptional performance and enjoys a stellar credit rating. With a growing distribution network, a dedicated team of over 23,000 employees, and operations across 15 states and two union territories, the bank offers a compelling investment opportunity in the dynamic Indian banking sector.
- Total Revenue: INR 8,205 crore
- Market Capitalization: INR 44,726 crore
- Total Employees: 30,000
- NIM: 4.90%
- Branches: 563
Yes Bank
Yes Bank is an Indian financial institution with a rich history and a promising future. Founded in 2004 by visionary entrepreneurs Rana Kapoor and Ashok Kapoor, this Bank has evolved into a dynamic player in the banking sector. Overcoming significant challenges in recent years, the bank has successfully repositioned itself under new leadership and regained the trust of customers and investors alike. With a comprehensive range of retail, MSME, and corporate banking services, Yes Bank is well-equipped to cater to the diverse needs of its clients. As it continues to strengthen its operations and implement robust risk and governance frameworks, Yes Bank offers a compelling opportunity for investors seeking a reliable partner in India’s thriving financial landscape.
- Total Revenue: INR 22,702 crore
- Market Capitalization: INR 45,967 crore
- Total Employees: 23,800
- NIM: 2.23%
- ATMs: 1200+
- Branches: 1100+
Bandhan Bank
Bandhan Bank, headquartered in Kolkata, is a leading banking and financial services company in India. With a strong presence across the country, the bank has established itself as a key player in the industry. Since its inception in 2001, Bandhan Bank has been dedicated to promoting financial inclusion and empowering women through sustainable livelihood creation. With a focus on underbanked and underpenetrated markets, the bank has successfully served millions of customers, making a significant impact on the lives of individuals and communities. Offering a wide range of products and services, including savings and current accounts, loans, insurance, and more, Bandhan Bank provides investors with a promising opportunity to capitalize on India’s thriving banking sector.
- Total Revenue: INR 15,905 crore
- Market Capitalization: INR 34,500 Crore
- Total Employees: 69,702
- NIM: 7.2%
- ATMs: 1,411
- Branches: 438
Top 10 Private Banks Compared: P/E, Market Cap – October 2023
| Sl no. | Bank Name | CMP (Rs) | Marketcap (Crore) | PE |
| 1 | HDFC Bank | 1476.5 | 1119455.14 | 16.54 |
| 2 | ICICI Bank | 915.35 | 641279.94 | 15.96 |
| 3 | Kotak Mah. Bank | 1739.4 | 345704.95 | 20.13 |
| 4 | Axis Bank | 981.85 | 302594.04 | 12.92 |
| 5 | IndusInd Bank | 1441.3 | 112037.11 | 13.49 |
| 6 | IDBI Bank | 61.85 | 66503.61 | 13.92 |
| 7 | IDFC First Bank | 82.7 | 58343.71 | 20.04 |
| 8 | Yes Bank | 15.95 | 45867.11 | 54.83 |
| 9 | AU Small Finance | 669.1 | 44695.88 | 27.83 |
| 10 | Bandhan Bank | 214.15 | 34496.67 | 13.58 |
- Private bank with highest P/E: Yes Bank (highly overvalued)
- Private bank with lowest P/E: Axis Bank (undervalued)
- Private bank with the highest market cap: HDFC Bank
Last updated (1st November 2023)
Final Thoughts: Which are the top 10 Private banks in India?
We have ranked the top 10 private banks based on their market cap.
My personal favorite private banks are HDFC and ICICI Bank. Recently I opened an online bank account with IndusInd Bank, as they are providing the highest interest on Fixed Deposits. I have my current accounts, savings accounts with these private banks. Plus the customer experience with these banks is much better than any public banks.
ICICI Bank is way ahead of any other banks in terms of online banking. If you are one who would love to experience the best user experience while using a banking app, I would highly recommend ICICI Bank.
Right from transferring money via UPI, to sending amounts to other beneficiaries via NEFT/RTGS, I prefer ICICI bank. Plus, ICICI banks are so safe that whenever you transfer a larger sum, you get a call from ICICI bank instantly, asking you to confirm if you have made the transaction.
If you are someone who wants to buy shares of a private bank, you may look into Axis Bank, as according to its PE ratio, Axis Bank’s valuation is the cheapest.
What did we learn?
