Private Banks in India 2024

The Reserve Bank of India, which is the country's top bank, oversees banking in India. It is India's most prominent banking regulatory body. 

In India, banks are divided into various groups, and each one has its own operating procedures, specific target markets, advantages, and disadvantages.Let us look at the private sector banks in India.

Types of Private Sector Banks

There are four types of banks. Let us go through them one by one.

1. Commercial Banks

A commercial bank is a type of financial organisation that offers its clients services including loans, CDs, savings accounts, overdraft protection, etc. 

Commercial banks are further divided into four categories:

• Private Sector Banks

• Public Sector Banks

• Regional rural banks

• Foreign banks

2. Small Finance Banks

Small Finance Banks in India are a distinct type of banking that was developed by the RBI with the assistance of the Indian government. 

They were launched with the intention of promoting financial inclusion by offering basic banking services to underserved and unserved populations, such as unorganized businesses, small and marginal farmers, and small business units.

3. Payments Banks

Payment banks are the most recent project of the Reserve Bank of India (RBI), with the primary goal of promoting digital, paperless, and cashless financial services in our country. 

It is a strategy that allows non-banking financial institutions to provide basic banking services to all Indian citizens.

4. Cooperative Banks

A cooperative bank is an institution formed on a cooperative basis to conduct ordinary banking transactions. 

Cooperative banks are formed by raising funds through the sale of shares, accepting deposits, and making loans.

Private Sector Banks

These are the banks where private individuals have the largest position in the shares or stock. Public sector banks predominated the Indian banking industry at first, but private sector banks emerged in the 1990s and have had tremendous growth since then.

Their rapid expansion was caused by the utilization of cutting-edge technology, fresh financial instruments, and modern advances.

Private sector banks in India are divided into two groups.

• Old banks in the private sector (these banks emerged before 1968)

• New banks in the private sector (these banks emerged after the 1990s)

Details of Private Sector Banks in India

1. Axis Bank

It ranks as India's third-largest private sector bank. Here are some prominent features of this bank -

• Axis Bank has the third-highest number of ATMs nationwide, behind ICICI and HDFC. 

• In the nation, they operate more than 12000 ATMs, 4500 cash recyclers, and 4500 branches.

• They provide a variety of financial services, but some of the important ones are mortgage loans, retail banking, MSME, wealth management, corporate banking, and home loans. 

• This bank has offices in 11 countries, including Singapore, Dubai, Shanghai, Hong Kong, Colombo, and Gift City-IBU. 

2. HDFC Bank

In terms of total assets and market capitalization, it is regarded as one of India's largest private banks. Salient features include -

• As part of the RBI's 1994 deregulation of the Indian Banking Industry, it is the first bank to have received "in-principle authorization" to open a bank in the private sector. 

• One of the best-performing banks is HDFC, which is included in the list of the top 100 brands in the world. 

• They offer their clients a wide range of financial services and products, such as wholesale and retail banking, all types of loans, treasury, and credit cards.

• Additionally, they have a huge global banking network, with more than 5430 branches, 15292 ATMs, a customer base of over 49 million, and more than 98,000 employees. 

3. ICICI Bank

Due to its total consolidated assets of Rs. 14.76 trillion in 2020, it is the second-largest private sector bank in India. Important features include -

• 5288 branches and 15158 ATMs are located nationally as part of ICICI's extensive branch network.

• Gujarat's Vadodara serves as the bank's registered office. ICICI bank was founded there in 1994. 

• They offer a wide variety of financial goods and services, such as credit cards, loans, credit cards, insurance, savings and current accounts, and fixed deposits.

• More than 85,000 persons in the nation are employed by ICICI Bank. Customers can receive services from ICICI Bank through a variety of distribution channels and its group companies.

4. CSB Bank

It was founded in November 1920 and was formerly known as the Catholic Syrian Bank. It is one of India's earliest private sector banks. Prominent features include -

• Their main office is in the city of Thrissur, Kerala. 

• In 18 states and 2 union territories, they have about 417 branches and more than 300 ATMs. 

• Corporate banking, SME banking, retail banking, and treasury operations are the four main business segments of CSB Bank. 

• They are currently aiming to increase their service offerings through technological investments in order to provide a better customer experience.

• They have over 3200 employees working for them to provide efficient customer service. It became a scheduled bank in 1969 and entered the field of international banking in 1975.

5. City Union Bank

This top private bank in India provides a wide range of services to its clients, including retail banking, loans, MSME, NRI banking, as well as meeting the needs of the agricultural and educational sectors. Other features are -

• In 1904, the Bank became a limited company under the name Kumbakonam Bank Limited. Its main office is in Tamil Nadu's Kumbakonam. 

• They began growing in 1930 when they established their first location in Mannargudi, and nearly 50 years later, in 1980, they established their first location outside of Tamil Nadu in Sultanpet.

• Since then, they have worked hard to keep their position, opening 700 branches and 1762 ATMs across the nation.

6. IDBI Bank

It is a full-service universal bank that gives its clients access to a wide variety of financial services. Other features are -

• They provide services such as deposits, loans, payment services, and investment options. 

• They have a good understanding of the demands of the consumer and take care to provide outstanding financial solutions and first-rate customer support.

• They have customer service available around-the-clock so you can receive assistance right away if you run into any problems.

• IDBI bank has over 3000 ATMs and 2000+ branches across the country. They have a customer base of over 6,00,000.

7. Dhanlaxmi Bank

Since its establishment in November 14th, 1927, Dhanlaxmi bank has continued to earn the trust and respect of its customers. This bank was established in Thrissur by enterprising businesspeople with a capital of Rs. 11,000 in hand.

• The RBI has designated Dhanlaxmi Bank as a scheduled bank. 

• To help consumers with transactions, they launched a mobile device named "Dhan Smart" in 2015 as part of their ongoing effort to remain on top of technological advancements.

• They have opened 180+ bank branches, 100+ ATMs, and 20+ extension counters across the country. 

• Their vision is to become a strong and innovative bank that will take on social responsibility in order to maximise customer satisfaction.

8. IDFC FIRST Bank

IDFC is one of the major private banks in India and due to its selection of luxurious banking products, its customer base is growing.

• When IDFC was first founded in 1997 to finance infrastructure, their main priorities were project financing and capital mobilisation for the construction of private-sector infrastructure. 

• They increased their business in 2005, and in 2013, they submitted an application to the RBI for a bank licence.

• They were granted permission in 2014, and IDFC First Bank was established in 2015. The company then merged with Capital First, a retail asset franchise, in 2018.

• They have only been in the market for a short time, but they already have a large customer base of 70+ lakh people, 30 lakh of whom are from rural areas. 

• The headquarters of IDFC First Bank are in Mumbai. They have 270+ branches and 150+ ATMs across India.

• They offer a wide range of financial services to individuals, small businesses, and corporations.

9. IndusInd Bank

One of India's top private banks, IndusInd Bank provides excellent services to its clients and works hard to earn their entire satisfaction.

• A new generation bank with a substantial financial footprint, it was established in 1994. They provide a wide range of services, such as microfinance, insurance, investments, and loans, deposits, and accounts.

• It is headquartered in Pune and operates a vast network of over 5000 distribution points, 2000 bank branches, and 2600 ATMs. 

• It has grown smoothly and dynamically in recent years because they work hard to provide banking services on par with their customers.

• IndusInd Bank also has offices in international locations such as Dubai, Abu Dhabi, and London. They serve more than 8 crore customers and employ more than 25,000 people.

10. DCB Bank

Since its establishment in the 1930s, this new generation private bank has significant roots in India. 

• It is an RBI-regulated scheduled commercial bank. There are 30+ branches spread across the country along with 100+ ATMs. 

• They have modern infrastructure and technology, including cutting-edge banking for both personal and business banking customers.

• Retail, micro-SME, SME, mid-corporate, government, public sector, Indian banks, co-operative banks, agriculture, commodities, and NBFC are among the financial services that DCB Bank provides to its clients. 

• This bank is expertly administered and managed.

11. Federal Bank

They offer one of the most effective and practical banking solutions to its customers. One of the first conventional banks in India to computerise every branch as soon as the idea of digitization emerged.

• Travancore Federal Banks, under which they initially offered their services, eventually changed their name to Federal Bank. 

• The bank's headquarters are in Aluva, Kerela, and it is one of the country's oldest private banks. 

• More than 12,000 individuals are employed by them in the nation.

• They provide a wide range of services, including depository services, personal banking, insurance, internet banking, mobile banking, NRI banking, online bill payment and fee collection, mutual fund products, insurance schemes, and so on.

• Federal bank has 1600+ ATMs, 1200+ branches, and a customer base of over 9 million.

12. Bandhan Bank

It was founded in 2015, and Kolkata serves as its administrative centre. 

• Serving the nation's unbanked and underbanked population is their main priority. 

• They provide financial services in the form of assets & liabilities, products & services, and fantastic banking solutions. 

• They provide banking services, microfinance, MSME financing, and affordable housing finance to urban, semi-urban, and rural customers, among other important services.

• Bandhan bank has 480+ ATMs, 900+ branches, and a customer base of over 7 million.

13. Kotak Mahindra Bank

After acquiring ING Vysya Bank in 2015, Kotak Mahindra quickly became one of India's most popular banks. 

• It was founded in 1985 as Kotak Mahindra Finance Ltd, but it changed its name to Bank in 2003, and it has since gained a lot of popularity among private sector banks by providing amazing products.

• They received the RBI licence and became India's first non-banking finance company to convert into a bank. 

• They have four major divisions: Consumer Banking, Corporate Banking, Commercial Banking, and Treasury; this serves the retail and corporate sectors in both rural and urban areas throughout the country.

• More than 1500 bank branches and 2300 ATMs, totaling over 740 sites, are operated by Kotak Mahindra Bank. 

• They provide a range of services, including life insurance, general insurance, investment banking, personal finance, and asset management. In Mumbai, they have their main office.

• Kotak Mahindra bank has a customer base of over 17 million.

14. J&K Bank

In Jammu & Kashmir and Ladakh, it operates as a universal bank, but elsewhere in the nation, it operates as a specialised bank. 

• It was founded in 1938 and their main administrative office is in Srinagar, Jammu & Kashmir. 

• Additionally, they are acknowledged as the RBI's agent for handling banking business obligations for Jammu & Kashmir and Ladakh, as well as collecting central taxes for CBDT.

• Their two-legged business approach, in which they aim to boost lending in the domestic market while looking for specialty lending opportunities across India, sets them apart from other banks in a significant way.

• J&K Bank operates 1000+ branches and 1300+ ATMs across the country. 

• They operate on the principle of "socially empowering banking" and strive to provide excellent financial services to small and medium-sized businesses as well as retail customers.

15. Karur Vysya Bank

This bank was established in 1916 to offer financial assistance to traders and farmers in the Tamil Nadu town of Karur. 

• As one of the top financial organisations in the nation, it has carried on the tradition for 103 years.

• They operate in 20 states and 3 union territories, with 700+ branches and 1600+ ATMs.

• Millions of consumers receive a wide range of financial services from them under one roof.

16. Karnataka Bank

The good thing about this bank is that they treat each customer individually and recognise that each customer has unique needs. 

• They understand your needs and provide excellent financial solutions regardless of the size of your business.

• Karnataka Bank offers a wide range of customised products and services suitable for trade, market, business, and personal use. 

• Borrowing facilities, maximum returns on surplus funds, deposits, and assistance with international transactions are just a few of the important services they provide.

• Karnataka bank has 1000+ ATMs, 800+ branches, and a customer base of over 10 million.

17. RBL Bank

It is one of India's private banks with one of the quickest rates of growth, and it is extending its offerings and branch network nationwide. 

• In 28 states and Union territories, they currently have 400+ bank branches, 1300+ business correspondent branches, and 400+ ATMs.

• When it was established in 1943, this bank was first called as Ratnakar bank. 

• Their main office is in Mumbai. Corporate & Institutional Banking, Commercial Banking, Branch & Business Banking, Retail Assets, and Treasury and Financial Markets Operations are the six main sectors in which RBL specialises.

18. YES Bank

It is one of the fastest-growing banks in India because it provides excellent customer service. 

• It began in 2004, and they have been working hard since then to become the finest quality largest bank in India. 

• They have now evolved into a "Full-Service Commercial Bank," and other banks look up to them.

• The good thing about this bank is that it is very customer-centric and service-driven, and these two qualities will help it become one of India's largest banks very soon.

• They have a presence all across India in 28 states and 9 union territories, in addition to an office in Abu Dhabi, an IBU, and GIFT cities.

• With its headquarters in Mumbai, it employs more than 18,000 people nationwide. YES bank has over 1400 ATMs and 1120 branches.

19. South Indian Bank

It's another well-known bank that has to be included in the list of private banks in India in 2022.  

• This bank was founded in 1929 during the Swadeshi movement and has its headquarters in Thrissur, Kerela. 

• It is one of the first private banks in Kerala to use the Core Banking System, and it is also one of the oldest.

• Because of the superior services they provide, they have maintained a positive reputation since the day they were founded and to this day. 

• Their main goal is to provide individuals with a trustworthy, efficient, and customer-focused financial organisation where they may obtain loans at fair interest rates.

• Because of their excellent services, they have an impressive nationwide network of 800+ branches, 50+ extension counters, and 1300+ ATMs. Their ATMs and branches can be found in 27 states and three union territories.

20. Tamilnad Mercantile Bank

Tamilnad Mercantile Bank was registered on 11 May 1921 as ‘The Nadar Bank Ltd’.

• This bank was first opened to the public on 11 November 1921 in Tuticorin, Tamil nadu.

• This bank is known for its stellar customer service and focuses on a ‘customer-first’ approach.

• There are over 500 branches of Tamilnad Mercantile bank across the country along with over 1000 automated teller machines and 12 regional offices.

• This bank has also tied up with HDFC Bank and IDBI Bank to increase their network coverage.

• Tamilnad Mercantile Bank enjoyed a net profit of Rs. 821.91 crores in 2022.

21. Nainital Bank

Nainital Bank was established in the year 1922 to cater to the needs of the people in the region.

• Currently, the bank operates over 168 banks in 5 states - Uttarakhand, Delhi, Rajasthan, Haryana, Uttar Pradesh.

• The total business of the bank was over Rs. 11,000 crore in 2022.

• This bank prides itself on its personalised services and is known to be customer friendly.

How Private Sector Banks Differ From Public Sector Banks

Given below are some characteristics that would highlight the distinction between private and public sector banks:

• The government owns the majority of the shares in public sector banks, whereas private shareholders own the majority of the shares in private sector banks.

• There are 12 public sector banks and 21 private banks.

• Compared to commercial banks, public sector banks have a substantially larger customer base.

• Compared to private banks, public sector banks have much greater transparency regarding their interest rate policy.

• Deposit interest rates in public sector banks are greater than those in private sector banks.

Conclusion

In this article, we compiled a comprehensive list of private banks in India in 2023, all of which were exceptional in a few other areas. Regardless of the type of financial service you need, be careful to examine costs and policy openness before choosing a bank.

According to total assets and revenue last year, HDFC is the largest private bank. However, as previously stated, selecting the appropriate Bank for yourself would depend on your financial requirements, as some banks provide the highest level of security, while others are reasonable, others have exceptional customer service, and still others are a combination of these qualities. So, choose the best and take advantage of their excellent services.