India is a country with a huge economy that’s growing quickly.
In 2021, India had a nominal GDP of $3.176 trillion, up from $1.676 trillion in 2010 and $468.4 billion in 2000.
For the July to September quarter of 2022, India’s economy expanded by 6.3% year over year, slightly higher than the Reuters poll forecast of 6.2% year over year, and substantially faster than the growth rates of many leading nations.
India is also expected to grow substantially in the future too.
According to S&P Global’s forecasts in November 2022, India’s real GDP could grow by an average of 6.3% annually from FY2021 to FY2030, allowing the country to be the third largest in the world by the end of the decade. Currently, the country is the fifth largest in terms of nominal GDP.
India’s population is also young, which offers the country another advantage.
The Ministry of External Affairs, Government of India writes in 2021, “India’s 1.3 billion people make it the second most populous country in the world, but with an average age of 29, it has one of the youngest populations globally. As this vast resource of young citizens enters the workforce, it could create a ‘demographic dividend’. A demographic dividend is defined by the United Nations Population Fund as economic growth resulting from a shift in a population’s age structure, mainly when the working-age population is larger than the number of dependents.”
The Ministry adds, “Around 62.5% of India’s working age population is aged between 15 and 59 years, ensuring that India will have a demographic advantage all the way to 2055. This is an attractive proposition for investments both locally as well as via FDI. According to CII and EY, India has the potential to attract Foreign Direct Investments (FDI) of US$120-160 bn per year by 2025.”
India’s Leading Banks Growth
Given India’s strong economic growth, some of India’s leading banks have also experienced growth.
One of India’s leading banks, ICICI Bank, for instance, reported a 34.2% increase in net profit for its October through December quarter thanks to healthy loan growth. Net profit was 83.12 billion Indian rupees or $1.03 billion, up from 61.94 billion rupees in the same period of the prior year, and around the analyst estimate of 81.25 billion rupees. The bank’s net interest margin for the quarter was 4.65%, up from the same quarter of the prior financial year net interest margin of 3.96%.
For the fiscal third quarter, ICICI Bank’s domestic loan portfolio expanded by 21.4% year over year and its retail loan portfolio increased by 23.4% year over year. Corporate loans also rose 18.2% year over year. The bank’s deposits increased 10.3% year over year.
As a whole, it is likely that India’s largest banks will grow their assets substantially in U.S. dollar terms over the next few decades as India’s economy expands.
In terms of individual banks, however, whether a bank can increase its assets or sales depends on company specific factors and how well the company does in terms of maintaining its overall market share. If there is an economic slowdown, individual bank assets and sales could decline.
In terms of fiscal 2023, India’s Ministry of Statistics projects India’s GDP to expand 7% compared to 8.7% in the previous year. While the preliminary projection is lower than the previous forecast of 8% to 8.5%, it is still faster than the projected growth rates of many of the world’s largest economies for this year.
With more assets, India’s banks could potentially make more loans or finance more projects. If they make the correct loans and finance the correct projects, India’s economy could expand even faster.
Photo by Sylwia Bartyzel on Unsplash
Methodology
For our list of 16 Largest Indian Banks by Assets, we took the 10 biggest private banks by assets in India according to Statista’s Leading private banks in India as of April 2022, by asset list.
We also took the 12 Indian public sector banks according to India’s government and found their assets for FY 2021.
We then took the top 16 out of the 22 banks by assets as of April 2022 or as of fiscal year 2021.
Given the value of the Indian rupee fluctuates versus the U.S. dollar, we listed the assets in Indian rupees. As of January 28, one U.S. dollar is equal to 81.52 Indian rupees.
So an asset of 1 trillion Indian rupee is around $12.27 billion under current exchange rates.
For those of you interested, also check out 16 Biggest Banks in the World.
16 Largest Indian Banks by Assets
16. Indian Overseas Bank
Assets as of Fiscal Year 2021 (trillion Indian rupees): 2.74
Indian Overseas Bank is a public sector bank in India with assets of 2.74 trillion Indian rupees as of fiscal year 2021. Indian Overseas Bank was founded in February 1937 and nationalized by the government in 1969. Public sector banks are banks where the India government owns over half of the bank’s stock.
15. Yes Bank
Assets as of April 2022 (trillion Indian rupees): 2.74
Yes Bank is a private sector bank in India that ranks #15 on our list of 16 Largest Indian Banks by Assets with assets of 2.74 trillion Indian rupees as of April 2022. Private sector banks can sometimes provide more tailored services to customers and make faster financial decisions than public sector banks.
14. IDBI Bank
Assets as of April 2022 (trillion Indian rupees): 2.98
Originally established as the Industrial Development Bank of India that was a development financial institution that financed projects, IDBI Bank converted into a banking company that offers a range of banking activities to millions of Indians. Today, IDBI Bank is a private sector bank with assets of almost 3 trillion Indian rupees.
13. IndusInd Bank
Assets as of April 2022 (trillion Indian rupees): 3.63
IndusInd Bank is a private sector bank with assets of 3.63 trillion Indian rupees as of April 2022. For FY 2021, IndusInd Bank had a net interest margin of 4.17% and return on equity of 7.33%. For FY 2022, the bank had a net interest margin of 4.11% and return on equity of 10.20%.
12. Central Bank of India
Assets as of Fiscal Year 2021 (trillion Indian rupees): 3.69
Central Bank of India is a public sector bank with assets of 3.69 trillion Indian rupees as of fiscal year 2021. The bank is not a central bank like the Federal Reserve however. The bank that is in charge of interest rate decisions in India is called Reserve Bank of India.
11. Kotak Mahindra
Assets as of April 2022 (trillion Indian rupees): 3.83
Kotak Mahindra is an Indian private sector bank that provides a range of banking services such as retail banking, treasury and corporate banking. As of April 2022, the bank had assets of 3.83 trillion Indian rupees, ranking #11 on our list of 16 Largest Indian Banks by Assets.
10. Indian Bank
Assets as of Fiscal Year 2021 (trillion Indian rupees): 6.26
Indian Bank is a public sector bank with assets of 6.26 trillion Indian rupees. Founded in 1907, the bank has grown substantially over time in terms of assets, which as of fiscal year 2021, it ranks among the 10 largest in India.
9. Bank of India
Assets as of Fiscal Year 2021 (trillion Indian rupees): 7.26
Bank of India is one of the larger banks in India with more than 5,000 branches. As a public sector bank, India’s government owns more than half of the stock of Bank of India.
8. Axis Bank
Assets as of April 2022 (trillion Indian rupees): 9.96
Axis Bank is India’s third largest private sector bank that offers financial services for personal and corporate banking. As of April 2022, Axis Bank had 9.96 trillion Indian rupees of assets, giving the bank significant scale.
7. Union Bank of India
Assets as of Fiscal Year 2021 (trillion Indian rupees): 10.72
Union Bank of India is a public sector bank with assets of 10.72 trillion Indian rupees as of Fiscal Year 2021. Union Bank of India also has 8,870 domestic branches, more than 11,200 ATMs, and 75,201 employees. The government of India owns 83.49% of the bank’s total share capital according to the bank’s annual report 2021-22.
6. Canara Bank
Assets as of Fiscal Year 2021 (trillion Indian rupees): 11.54
Canara Bank is a public sector bank with 11.54 trillion Indian rupees in assets as of fiscal year 2021. The bank engages in the provision for commercial banking and financial services. If it makes good loans and maintains its market share, Canara Bank could help India further develop and increase its assets in the future.
5. Bank of Baroda
Assets as of Fiscal Year 2021 (trillion Indian rupees): 11.55
Bank of Baroda is a public sector bank that ranks #5 on our list of 16 Largest Indian Banks by Assets. As of fiscal year 2021, Bank of Baroda was among India’s largest banks with assets of 11.55 trillion Indian rupees. With its scale, the bank can afford to spend more on technology that could potentially help it grow assets further.
4. Punjab National Bank
Assets as of Fiscal Year 2021 (trillion Indian rupees): 12.6
Punjab National Bank is a public sector bank with headquaters in New Delhi. The bank is also one of India’s largest banks with 10,038 domestic branches, 2 international branches, and 12,9666 ATMs. As of fiscal year 2021, Punjab National Bank had assets of 12.6 trillion Indian rupees.
3. ICICI Bank
Assets as of April 2022 (trillion Indian rupees): 14.11
ICICI Bank is one of India’s leading private banks with assets of 14.11 trillion Indian rupees. The bank is also one of the few Indian banks listed in the United States. Specifically, ICICI Bank is listed on the NYSE as ICICI Bank Limited (NYSE:IBN).
According to the bank, India benefits from a growing young population, rising consumption, the largest source of human capital, and the country’s status as the world’s factory. If India’s economy continues to grow and the company maintains its market share, ICICI Bank could increase its assets in the coming decades.
2. HDFC Bank
Assets as of April 2022 (trillion Indian rupees): 20.69
HDFC Bank is another of India’s leading private banks that’s listed in the United States. For HDFC Bank, it is listed as HDFC Bank Limited (NYSE:HDB). In terms of assets, HDFC Bank is India’s second largest bank with 20.69 trillion Indian rupees as of April 2022. In terms of services, the bank offers retail, commercial, and investment banking. HDFC Bank has 129,340 employees and has long term growth potential if it maintains its market share.
1. State Bank of India
Assets as of Fiscal Year 2021 (trillion Indian rupees): 50.55
State Bank of India is the largest public sector bank by assets in India and also the largest bank by assets in India. As a result, State Bank of India ranks #1 on our list of 16 Largest Indian Banks by Assets. As of fiscal year 2021, State Bank of India had assets of $620.22 billion which under current exchange rates is 50.55 trillion Indian rupees.
Fitch Ratings describes State Bank of India, “Fitch expects India’s strong potential GDP growth of 7% over the medium term and stable operating environment (OE) – despite some near-term inflationary pressure – to create moderate opportunities for banks to do profitable business. The large and diversified economy, high domestic consumption growth, and reasonable insulation from external risks are also supporting factors. Dominant Presence: SBI’s business profile score of ‘bbb-‘ is the highest among Indian banks and above the OE score of ‘bb’. It reflects SBI’s dominant market share in system assets, liabilities and deposits; unparalleled domestic reach; and better pricing power. Government influence can weigh on its traditional business model (loans: 58% of assets), and even more so its risk appetite, similar to other state banks. Growth Gradually Returning: SBI’s loan growth guidance of over 15% for the financial year ending March 2023 (FY23) highlights that its risk appetite is gradually returning.”
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