India’s banking system is transforming fast! With more people looking for better services, top private banks in India are stepping up to meet these needs. Recently, deposits in scheduled banks jumped by ₹2.04 lakh crore. The rise of digital banking is also making it easier for everyone to access financial services. For example, the Indian fintech industry is expected to grow from $111 billion to $421 billion by 2029!
Because of these changes, many people are choosing private banks for their convenient and reliable services. To help you find the right one, we’ve compiled a list of top private banks in India for 2024. These institutions have earned their reputation by providing excellent service and customer satisfaction.
Let’s take a closer look at the top 10 private banks in India!
Private Banks in India| Meaning and Functioning
Private banks in India are financial institutions owned and operated by private individuals or corporations. The top private banks in India focus on providing efficient and transparent services. One of the key aspects of private banking is offering clients guidance on effective financial management. Their services typically include estate planning, tax preparation, loans, credit cards, and investment options.
Private banks in India have a great history!
Before India gained independence, banking was chaotic and disorganised. However, after independence, especially in the 1990s, when the government relaxed rules, private banks came into the limelight. This change allowed them to introduce modern banking methods.
Now, the top private sector banks occasionally introduce advanced technologies.
Protect yourself against OTP frauds!
Many people prefer private banks over public banks for their personalised services and quicker response times. These top private banks in India lead the digital banking industry.
Do you know how many private banks are in India?
Here is the updated list, as shared by RBI.
It shows twenty-one private banks in India as of 2024.
List of Private Banks in India- 2024
Here is the updated list of private sector banks in India.
| Bank Names |
| Axis Bank, Bandhan Bank, CSB Bank, City Union Bank, DCB Bank, Dhanlaxmi Bank, Federal Bank, |
| HDFC Bank, ICICI Bank, IDBI Bank, IDFC First Bank, IndusInd Bank, Jammu and Kashmir Bank, |
| Karnataka Bank, Karur Vysya Bank, Kotak Mahindra Bank, Lakshmi Vilas Bank, Nainital Bank, |
| RBL Bank, South Indian Bank, Yes Bank |
Now, out of all these, which is the best private bank in India?
Let’s explore the list of top private banks in India to help you decide based on their features and services.
Here’s a table summarising the top 10 private banks in India, including their market capitalisation and history.
| Ranking | Bank Name | Estd. | Headquarter | Market Cap (Rs. Cr.) |
| 1 | HDFC Bank | 1994 | Mumbai | 1,316,818.53 |
| 2 | ICICI Bank | 1994 | Mumbai | 901,849.59 |
| 3 | Axis Bank | 1993 | Mumbai | 379,202.09 |
| 4 | Kotak Mahindra Bank | 1985 | Mumbai | 373,746.64 |
| 5 | IndusInd Bank | 1994 | Pune | 109,771.89 |
| 6 | IDBI Bank | 1964 | Mumbai | 94,406.08 |
| 7 | Yes Bank | 2004 | Mumbai | 70,279.70 |
| 8 | IDFC First Bank | 2015 | Mumbai | 54,945.67 |
| 9 | AU Small Finance Bank | 1996 | Jaipur | 54,582.17 |
| 10 | Federal Bank | 1931 | Kerala | 48,333.51 |
Source- Screener.in, data as of Oct 1st, 2024- Top 10 Private Banks in India by Market Capitalization.
List of Top 10 Private Banks in India| Features and Offerings
Here’s a rundown of the best private banks in India and their key figures:
1. HDFC Bank
HDFC Bank formed in 1994 as a subsidiary of Housing Development Finance Corporation (HDFC). It ranks first among the top private banks in India.
HDFC Bank offers multiple personal banking services.
This includes:
- Accounts
- Deposits
- Cards
- Loans
- Investment
- Insurance products
Incorporation Date: August 1994
Commencement of Operations: January 1995
As of August 2024:
- 8,919 branches
- 21,031 ATMs/Cash Recycler Machines (for deposits and withdrawals)
- Spread across 3,836 cities and towns
- Recent Merger Announcement: April 4, 2022, with HDFC Limited (India’s largest Housing Finance Company)
- Key Products: Home Loans
- Network: 737 Outlets
- Target Market: Urban, Semi-Urban, and Rural India
As per the latest data, as of Oct 1st, 2024; HDFC is the largest private bank in India on the private bank list- 2024.
2. ICICI Bank
ICICI Bank ranks 2nd on the list of top private banks in India.
It earns recognition as one of the best private banks due to its diverse offerings.
This includes:
- Savings accounts
- Fixed deposits
- Recurring deposits
- Car loans
- Two-wheeler loans
- Home loans
- Credit cards
- Personal loans
Founded in 1994, it emerged as a subsidiary of the ICICI (Industrial Credit and Investment Corporation of India).
Performance Review: Quarter Ended June 30, 2024
- Profit after tax: ₹11,059 crore, a growth of 14.6% year-on-year
- Total deposits (period-end): ₹14,26,150 crore, an increase of 15.1% year-on-year
- Average deposits: ₹13,78,658 crore
- Number of ATM: 17,037
- Number of Branches: 6,371
3. Kotak Mahindra Bank
It ranks third on the list of top private banks in India.
Kotak emerged in 2003 as a result of the merger of Kotak Mahindra Finance Limited, a non-banking finance company, and two Kotak Group companies.
One of the best private banks in India, Kotak has unique offerings.
These include:
- Credit card offers
- Debit card benefits
- Variety of savings and investment products
Key Highlights as of 2024:
- 1,869 branches and 3,239 ATMs across India, with additional branches in GIFT City and DIFC (Dubai).
- Zurich Insurance Group acquired a 70% stake in Kotak General Insurance.
- Kotak Mahindra Bank retains a 30% stake and continues as a corporate agent for KGI.
- Net Interest Income (NII) increased by 24% YoY.
- Operating profit for 9MFY24 increased by 38% YoY to ₹14,126 crore.
4. Axis Bank
Axis Bank, established in 1993 as UTI Bank, is one of the largest private banks in India.
It currently ranks fourth on the private bank list in India. Axis offers numerous banking and financial solutions, including personal and business banking.
Retail banking products such as:
- Savings and salary accounts
- Fixed and recurring deposits
- Credit and debit cards
- Loans
- Forex services
- Investment options
Axis Bank Q1FY25 Highlights
- Net Interest Income: Grew 12% YOY and 3% quarter-on-quarter (QOQ).
- Net Profit: ₹6,035 crores, up 4% YOY.
- Retail Loans: Increased 18% YOY, with rural loans up 24%.
- Branch Network: Added 50 branches in Q1 FY25, bringing the total to 5,427 branches.
5. IndusInd Bank
IndusInd Bank stands in 5th position among the top 10 private banks in India. It has around 37 million customers nationwide.
It offers a variety of banking products, such as
- Savings and current accounts
- Credit cards
- Loans
- Vehicle loans
- Home loans
- Gold loans
IndusInd Bank Highlights as of Oct, 2024
- Branch Network: 3,013 branches
- ATM Network: 2,988 ATMs
- Village Coverage: Services extend to 160,000 villages.
- International Presence: London, Dubai, and Abu Dhabi.
6. IDBI Bank
Established in 1964, IDBI Bank currently ranks 6th among the Private Sector Banks in India. It started as a development finance institution.
IDBI provides a comprehensive range of products, including:
- Savings and current accounts
- Home and Auto loans
- Gold loans
- Banking services tailored to retail, MSME, and agricultural customers
- Digital banking services
Highlights for Q3 FY 2024:
- Profit After Tax (PAT): ₹1,458 cr
- Operating Profit: ₹2,327 cr
- CASA Ratio: 49.88%
- CASA Amount: ₹1,28,962 cr
- 1,928 branches and 3,334 ATMs
7. Yes Bank
It ranks seventh on the list of 10 best private banks in India. Yes Bank, founded in 2003, is one of the largest on the list of top private banks in India. It has a network of over 1,100 branches and 1,800 ATMs nationwide.
One of the best private bank in India, it offers multiple banking services, including:
- Bank accounts
- Deposits
- Cards
- Cash management
- Privilege banking
- Trade finance
- Non-Resident India (NRI) banking
- Institutional banking
- Merchant acquiring
- Digital banking and agricultural banking solutions
Here are the key highlights for Q1 FY2024-25:
- Net Profit:
- Year-on-Year Growth: 46.7%
- Amount: ₹502 Crores
- Total Deposits(Excluding Certificate of Deposits):
- Year-on-Year Growth: 20.8%
- Amount: ₹2,65,072 Crores
- Gross Non-Performing Assets (GNPA):
- Quarter-on-Quarter: 1.7% vs 1.7%
- Net Non-Performing Assets (NNPA):
- Quarter-on-Quarter: 0.5% vs 0.6%
8. IDFC First Bank
Formed in 2018 by merging IDFC Bank and Capital First, IDFC First Bank is one of the best private sector banks in India.
This private sector bank emphasize zero charges on commonly used savings account service. It also offers lifetime-free credit cards with no minimum spend conditions.
Financial Performance- Q3 FY- 2024
- Net Profit: Grew 18%, Rs. 716 crore in Q3-FY24.
- Net Interest Income (NII): Grew 30% YOY, Rs. 4,287 crore in Q3- FY24.
- Customer Deposits: increased by 42.8% YoY, Rs. 1,76,481 cr
- CASA Deposits: 85,492 Cr.
- Branches: 897
Social Banking Initiatives
40 million customers financed, including:
- 300,000 SMEs
- 900,000 livelihood loans (e.g., cattle loans)
- 1 million sanitation loans
- Retail and rural loans (e.g., Kisan Credit Cards, gold loans).
9. AU Small Finance Bank
AU Small Finance Bank is another favoured one among the top private banks in India.
It focuses on serving underserved segments. This private sector bank offers products like savings accounts, loans, and digital banking.
Offering unique services compared to other top private banks in India, it was converted into a small finance bank in 2017.
Provides a range of products, including:
- Savings accounts
- Loans
- Credit cards
- Fixed deposits
- Video banking
- AU 0101 App/NetBanking
One of the best private banks in India, it offers personal and business banking solutions.
Financial Snapshot- in the quarter and year ended March 31, 2024
- Total Deposits: ₹ 87,182 Crores
- CASA Deposits: ₹ 29,126 Crores
- CASA Ratio: 33%
- Gross Advances: ₹ 73,999 Crores
- Branches: 2383
10. Federal Bank
Federal Bank is a preferred top private bank in India for personal, NRI, and business banking across India’s urban and rural areas.
Federal Bank’s emphasis on digital capabilities and initiatives has led to an 86% share of digital transactions. Thus, positioning it as one of the best among the top private banks in India.
It offers a variety of products, including:
- Savings accounts
- NRE savings accounts
- Debit and credit cards
- Loans
- Investment options
- Insurance.
- Banking services for small businesses
Federal Bank Q1 FY2024-25 Financial Highlights
- Total Business: Reached ₹486,871.33 Cr.
- Net Profit: Highest ever at ₹1,009.53 Cr, growing by 18.25% year-on-year.
- Operating Profit: Highest ever at ₹1,500.91 Cr.
- Return on Assets (ROA): 1.27%.
- Net Non-Performing Assets (NNPA): Reduced to 0.60%.
- Total Deposits: Increased by 19.58%.
- Total Net Advances: Increased by 20.34%.
This ends our well-researched list of top private banks in India.
Technological Innovation in Banking
Here are a few examples of top private banks in India using the latest solutions.
IndusInd Bank
Implemented an omnichannel experience, offering services like voice banking through Alexa and a suite of WhatsApp banking services.
Bandhan Bank
Overhauled its core banking system and expanded digital services through collaboration with Oracle.
This includes implementing Oracle Payments, Retail Loan Originations, and services for Retail Internet and Mobile Banking.
Axis Bank
Introduced an AI-powered conversational, interactive voice response system called AXAA. This allows customers to address their banking issues anytime, anywhere.
These initiatives show how these top private banks in India integrate technology to provide more accessible services.
Economic Impact of Private Banks
Best Private banks significantly contribute to India’s economic growth. They play a crucial role in mobilizing savings, providing credit, and facilitating investment. These are indeed essential for economic development.
- Private banks innovate with advanced technologies, digital services, and personalised financial products.
- Private banks promote competition, diversification, and efficiency in the banking sector.
- They adhere to RBI’s regulatory guidelines, anti-money laundering measures, and customer protection policies.
- Private sector banks implement risk management frameworks to mitigate credit, market, and operational risks. Thus ensuring safety for both the institution and its customers.
There are two sides to the coin, and the same applies to private banks in India. Even the best private banks experience roadblocks.
Banking Sector Challenges
Private banks in India encounter several challenges that affect their operations and financial health.
- Non-performing assets (NPAs) pose a challenge to profitability and financial health.
- Ensuring responsible lending practices and risk assessment to minimise defaults and loan losses.
Now, apart from the private banks in India, which other types of banks are in India?
Let us take a look!
Types of Banks in India
The following are the main types of banks in India:
• Central Bank
The Reserve Bank of India is the country’s central bank, which regulates the banking system and monetary policy.
It acts as the banker’s bank, the government’s bank, and the supervisor of the financial system. It also issues currency and controls the foreign exchange reserves.
• Commercial Banks
These are the banks that provide banking services to the general public and the business sector.
SBI, ICICI, Axis, etc, all these fall under the category of commercial banks.
They accept deposits, lend money, transfer funds, issue drafts, and offer other financial products and services.
They are further divided into public sector banks, private sector banks, foreign banks, regional rural banks, and local area banks.
• Cooperative Banks
These are the banks that operate on the principle of cooperation and mutual help.
They provide credit and banking facilities to the rural and agricultural sectors, small businesses, and low-income groups. The state governments and the RBI control and regulate their work.
• Small Finance Banks
These are the banks that cater to the financial needs of the unserved and underserved sections of society. This could be small farmers, micro and small enterprises, and low-income households.
• Payments Banks
These are the banks that offer limited banking services, such as accepting deposits up to Rs. 2 lakh, issuing ATM cards, and facilitating digital transactions.
They do not provide lending services or credit cards. They mainly target migrant workers, low-income households, and small businesses.
• Specialized Banks
These are the banks that focus on specific sectors or activities, such as industrial development, export-import, housing, infrastructure, etc. They provide long-term finance, technical assistance, and advisory services to their clients.
Some examples of specialised banks are:
- Industrial Development Bank of India (IDBI),
- Export-Import Bank of India (EXIM)
- National Housing Bank (NHB)
- NABARD-National Bank for Agriculture and Rural Development
Difference Between Public and Private Sector Banks
Public sector banks are banks in which either central or state government, holds the majority stake.
- They offer lower interest rates on loans and higher interest rates on deposits.
- They also provide banking services to the rural and remote areas.
However, they also face some challenges, such as low profitability, high non-performing assets, bureaucratic interference, and slow decision-making.
Private sector banks are banks in which private individuals and corporations hold the majority stake. These banks are registered under the Indian Companies Act and operate with more autonomy.
- They have a profit-oriented approach.
- They offer higher interest rates on loans and lower interest rates on deposits.
The following table summarises the difference between public and private sector banks:
Difference between Public and Private Sector Banks
| Basis | Public Sector Banks | Private Sector Banks |
| Ownership | Government | Private entities or individuals |
| Number of banks | 11 | 21 |
| Customer base | Large | Relatively small |
| Interest rate on deposits | High | Marginally lower |
| Interest rate on loans | Low | Marginally higher |
| Pension | Yes | No |
| Services | Basic and traditional | Advanced and modern |
| Innovation | Low | High |
| Customer satisfaction | Low | High |
| Non-performing assets | High | Low |
| Social responsibility | High | Low |
Indian Banks Spread Global Wings
The top private banks in India are spreading their wings worldwide!
In 2023-24, there was a higher increase for subsidiaries, according to the RBI. The focus is on UAE, UK, Hong Kong, and Singapore.
FAQs| Top Private Banks in India
The main types of banks in India include, the central bank, commercial banks, cooperative banks, regional rural banks, specialised banks, small finance banks, etc.
There are three main types of banks: retail banks for individuals, commercial banks for businesses, and investment banks for financial services.
Commercial banking serves a wide customer base with loans and deposits, whereas private banking offers personalised services to high-net-worth individuals.
Yes, private banks are suitable for international transactions as they provide services to meet the global financial needs of clients.
Private sector bank offers advantages such as superior customer service, innovative technology offerings etc.
HDFC Bank is the largest private bank in India, with a market cap of ₹1,315,178.31 crore as of October 1st, 2024.
The major types of banks in India include commercial banks, small finance banks, cooperative banks, payments banks, and foreign banks.
As of October 1st, 2024, Yes Bank is the 7th largest private bank in India, with a market cap of ₹70,436.44 crore.
Source- RBI
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