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 |
