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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