Top 10 Private Banks In India
The Reserve Bank of India (RBI) claims that India's banking system is adequately capitalized and regulated. The country's financial and economic conditions are significantly superior to those of any other country.
In a recent studies, Morgan Stanley Research stated that large private banks had emerged stronger in terms of capital positions as a result of the Covid issue. Furthermore, they have benefited greatly from expanded digital adoption.
Mid-sized private banks have taken a similar path, but their excess provisions are lower.
The issue of funding was a challenge for Indian private banks, as they were expanding market share in loans faster than deposits. As a result, loan-to-deposit ratios were high, and private banks paid a higher interest rate on term deposits than state-owned banks.
In this guide, you’ll learn:
The Top 10 Biggest Banks in India as of 2021 are listed below. The list is ranked based on Market capitalization.
1. HDFC Bank
Quick Overview— HDFC Bank
Foundation 1994
Trading Symbol HDFC
Type Large Cap
Market-Cap Rs 825,547 Cr.
Revenue Rs 128,552 Cr.
ROE 13.2 %
Promoter holding 0.00 %
Dividend Yield 0.84 %
Debt to Equity 2.87
Pros & Cons— HDFC Bank
Pros
Cons
The company is predicted to deliver a strong quarter.
Stock is trading at 3.03 times its book value
A healthy dividend distribution of 20.46 percent has been maintained by the company
Company has low interest coverage ratio
The company's median sales growth over the last ten years has been 17.51 percent
Increase in NPA in recent result
Rising net cash flow
2. ICICI Bank
Quick Overview— ICICI Bank
Foundation 1994
Trading Symbol ICICIBANK
Type Large Cap
Market-Cap Rs 501,236 Cr
Revenue Rs 89,162 Cr.
ROE 13.1 %
Promoter holding 0.00 %
Dividend Yield 0.28 %
Debt to Equity 7.00
Pros & Cons— ICICI Bank
Pros
Cons
Company with high EPS growth
Stock is trading at 3.18 times its book value
The interest coverage ratio of the company is low.
Over the last five years, the company has had a bad revenue growth rate of 8.50 percent.
For the last three years, the company has had a low return on equity of 8.67 percent.
Increase in NPA in recent results
3. Kotak Mahindra
Quick Overview— Kotak Mahindra
Foundation 2003
Trading Symbol KOTAKBANK
Type Large Cap
Market-Cap Rs 389,572 Cr.
Revenue Rs 32,819 Cr.
ROE 12.3 %
Promoter holding 26.0 %
Dividend Yield 0.05 %
Debt to Equity 4.77
Pros & Cons— Kotak Mahindra
Pros
Cons
Over the last five years, the company has generated a good profit growth of 27.17 percent CAGR.
The stock is currently trading at a price of 6.11 times its book value.
The interest coverage ratio of the company is low.
For the last three years, the company has had a low return on equity of 12.43 percent.
Over the last three years, promoter holding has decreased
4. Axis Bank
Quick Overview— Axis Bank
Foundation 1993
Trading Symbol AXISBANK
Type Large Cap
Market-Cap Rs 202,972 Cr.
Revenue Rs 64,696 Cr.
ROE 7.58 %
Promoter holding 11.6 %
Dividend Yield 0.00 %
Debt to Equity 8.30
Pros & Cons— Axis Bank
Pros
Cons
Company with high EPS growth
Promoter holding is low
The interest coverage ratio of the company is low.
Over the last five years, the company has had a dismal revenue growth rate of 9.33 percent.
5. IndusInd Bank
Quick Overview— IndusInd Bank
Foundation 1994
Trading Symbol INDUSINDBK
Type Large Cap
Market-Cap Rs 69,817 Cr.
Revenue Rs 28,999 Cr.
ROE 7.55 %
Promoter holding 15.9 %
Dividend Yield 0.55 %
Debt to Equity 7.06
Pros & Cons— IndusInd Bank
Pros
Cons
Rising net cash flow
Company has low interest coverage ratio
Dividend payout has been low at 8.96% of profits over last 3 years
Promoters holding is low
5. IDBI Bank
Quick Overview— IDBI Bank
Foundation 1964
Trading Symbol IDBI
Type Large Cap
Market-Cap Rs 50,214 Cr.
Revenue Rs 19,956 Cr.
ROE 3.84 %
Promoter holding 94.7 %
Dividend Yield 0.00 %
Debt to Equity 6.70
Pros & Cons— IDBI Bank
Pros
Cons
Company has delivered good profit growth
The company has delivered a poor sales growth
Promoters holding is good
Earnings include an other income of Rs.4795.32 Cr.
Company has low interest coverage ratio
7. Bandhan Bank
Quick Overview— Bandhan Bank
Foundation 2001
Trading Symbol BANDHANBNK
Type Large Cap
Market-Cap Rs 45,527 Cr.
Revenue Rs 12,524 Cr.
ROE 13.5 %
Promoter holding 40.0 %
Dividend Yield 0.35 %
Debt to Equity 5.45
Pros & Cons— Bandhan Bank
Pros
Cons
Book value per share is increasing over last 2 years
Stock is trading at 2.62 times its book value
Company has been maintaining a healthy dividend payout
Over the past 3 years, Promoter holding has decreased
Company's median sales growth is good
Earnings include an other income of Rs.2432.25 Cr.
8. AU Small Financ
Quick Overview— AU Small Financ
Foundation 1996
Trading Symbol AUBANK
Type Large Cap
Market-Cap Rs 35,378 Cr.
Revenue Rs 4,950 Cr.
ROE 22.3 %
Promoter holding 28.4 %
Dividend Yield 0.00 %
Debt to Equity 6.97
Pros & Cons— AU Small Financ
Pros
Cons
Company has delivered good profit growth of 40.81% CAGR over last 5 years
Stock is trading at 5.73 times its book value
Strong annual EPS growth
Earnings include an other income of Rs.1345.02 Cr.
Promoter holding has decreased over last 3 years
9. Yes Bank
Quick Overview— Yes Bank
Foundation 2004
Trading Symbol YESBANK
Type Large Cap
Market-Cap Rs 31,193 Cr.
Revenue Rs 20,039 Cr.
ROE -12.7 %
Promoter holding 0.00 %
Dividend Yield 0.00 %
Debt to Equity 6.84
Pros & Cons— Yes Bank
Pros
Cons
Stock is trading at 0.94 times its book value
Promoters holding is bad
Rising net cash flow
Earnings include an other income of Rs.3783.62 Cr.
The company has delivered a poor sales growth
Stock is providing a good dividend yield of 4.78%
10. IDFC First Bank
Quick Overview— IDFC First Bank
Foundation 2015
Trading Symbol IDFCFIRSTB
Type Large Cap
Market-Cap Rs 28,801 Cr.
Revenue Rs 15,968 Cr.
ROE 2.64 %
Promoter holding 36.5 %
Dividend Yield 0.00 %
Debt to Equity 7.55
Pros & Cons— IDFC First Bank
Pros
Cons
Strong annual EPS growth
Earnings include an other income of Rs.3228.88 Cr.
Promoter holding has decreased over last 3 years
Increase in NPA in recent results
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