Top 10 Largest Banks in India

In India, the banking sector plays a pivotal role in the economy, facilitating financial transactions, promoting savings, and supporting economic growth through credit and investment. The banking system in India is dominated by both public sector banks (owned and operated by the government) and private sector banks. Among the largest and most prominent banks in India are State Bank of India (SBI), ICICI Bank, and Punjab National Bank (PNB), which consistently top the rankings in terms of total assets, market capitalization, and financial services offered. These banks not only contribute significantly to India’s financial system but also play a crucial role in providing banking services across various sectors, from corporate banking to retail banking, and from investment banking to insurance.

State Bank of India (SBI): The Leader in Indian Banking

State Bank of India (SBI) is undoubtedly the largest state-owned banking and financial services company in India. As of the latest reports, SBI holds the position of the largest bank in India based on assets, balance sheet size, and profitability. Established in 1806 as the Bank of Calcutta, it was later renamed the State Bank of India in 1955 after merging with the Imperial Bank of India. SBI is not only the oldest bank in the country but also the largest, with a vast network of branches, ATMs, and subsidiaries across India and overseas.

SBI is a major player in the Indian banking sector, with its range of products and services spanning retail banking, corporate banking, agricultural finance, investment banking, and insurance services. The bank has been instrumental in the development of India’s banking infrastructure and is known for its extensive customer base and comprehensive range of financial products. With over 24,000 branches in India and more than 200 branches across the globe, SBI has the largest footprint among Indian banks, making banking services accessible even in remote areas.

As of 2010, SBI was the only bank to be listed among the “Top 10 Brands of India” in an annual survey conducted by Brand Finance and The Economic Times. This ranking is a testament to SBI’s dominant market presence and strong brand reputation. Furthermore, SBI's consistent performance in profitability and market capitalization has solidified its position as a premier bank in India.

SBI has also played an essential role in driving financial inclusion in India. Its introduction of several innovative products like the SBI Cards, mobile banking, and digital payment services has helped in reaching a wider audience, including those in underserved and rural regions. Additionally, its strategic partnerships with various organizations and government programs have allowed it to cater to the diverse financial needs of India’s population, including low-income and rural customers.

ICICI Bank: The Corporate Giant

ICICI Bank, the second-largest bank in India, is a leading private sector bank that has grown rapidly to become a significant player in both the domestic and international financial markets. Established in 1994 as a subsidiary of ICICI Limited, ICICI Bank became an independent entity following the merger of ICICI Bank and ICICI Ltd. in 2002. The bank provides a wide range of banking products and financial services to both corporate and retail customers, including corporate banking, retail banking, credit cards, personal loans, and insurance services.

As of March 2010, ICICI Bank had total assets amounting to approximately Rs. 3,634.00 billion (US$ 81 billion). This places it as the second-largest bank in India, following closely behind SBI. ICICI Bank has established a strong presence in both the domestic and international markets. It operates through a variety of delivery channels, including branches, ATMs, internet banking, and mobile banking, thus offering a seamless banking experience to its customers.

ICICI Bank is also recognized for its comprehensive financial services, which include specialized subsidiaries in investment banking, life and non-life insurance, asset management, and venture capital. The bank's equity shares are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), and it has a substantial presence in the global financial markets. ICICI Bank is considered one of the most innovative banks in India, especially known for its technological advancements and digital banking services. The bank's efforts to make banking services more accessible, including mobile banking and internet banking, have significantly contributed to the country’s growing financial inclusion.

In addition to its strong corporate presence, ICICI Bank has also expanded its reach into rural and semi-urban areas, thus helping underserved communities gain access to essential financial services. The bank has won several accolades for its customer service, operational efficiency, and commitment to innovation, cementing its place as a leading financial institution in India and the world.

Punjab National Bank (PNB): A Historic and Resilient Institution

Punjab National Bank (PNB) is another important state-owned bank in India, ranking third in terms of total assets. Founded in 1894, PNB is one of India’s oldest banks, with a history that spans over 125 years. Headquartered in New Delhi, PNB is known for its widespread presence across India, with more than 7,000 branches in the country. The bank has also established a significant international presence, with branches in various countries, including the United Kingdom, the United States, and several African nations.

As of 2008, PNB ranked as the 248th largest bank in the world according to the Bankers Almanac published in London, a remarkable achievement for an Indian public sector bank. With total assets amounting to approximately $49,777 million in 2008, PNB has managed to build a solid financial position over the decades. The bank provides a range of services including retail banking, corporate banking, and agricultural finance, and has been at the forefront of offering credit facilities to small and medium enterprises (SMEs) in India.

PNB has consistently shown resilience in the face of various challenges, including economic downturns and the evolving regulatory environment. The bank’s focus on expanding its footprint in underserved areas and improving its technological capabilities has contributed significantly to its growth. PNB’s efforts in improving its service delivery, introducing digital banking products, and enhancing its customer experience have helped it maintain a strong position in the Indian banking sector.

PNB has also embraced various government initiatives aimed at financial inclusion and rural development, playing a pivotal role in providing banking services to unbanked and underserved sections of the population. As a part of its commitment to innovation, the bank has launched a series of initiatives in mobile banking, internet banking, and branchless banking, ensuring that it remains competitive in the rapidly changing banking landscape.

The Top 10 Indian Banks based on Assets held as of 31 Dec 2008 are as follows:
No., Bank, Total Assets as of Dec,2008 (in US $ millions)
1 State Bank of India (256,124.00)
2 ICICI Bank Limited (94,747.00)
3 Punjab National Bank (49,777.00)
4 Bank of Baroda (45,600.00)
5 Bank of India (44,432.00)
6 Canara Bank (43,210.00)
7 HDFC Bank Ltd (36,000.00)
8 IDBI Bank Ltd (34,169.00)
9 Union Bank of India (31,598.00)
10 Central Bank of India (29,026.00)
Source: BankScope