HDFC Bank, ICICI Bank, SBI, Kotak, Axis lead list of banks with top m-cap, ET BFSI

~ Samriddhi Singh Mahar

According to latest data by the Bombay Stock Exchange, released on the last week of August, private banks HDFC Bank and ICICI Bank and public sector bank SBI lead the race in list of banks with highest market capitalisation.

While various metrics can be used to understand the true value of a company, one of the simplest ones used is by knowing the Market Capitalisation of the respective company. It is used to measure the value of a company by multiplying the price per share with the number of outstanding shares being distributed in the market.

In simpler words, using market capitalisation we can understand the standing of a banking company in the market.

While reliable, market capitalisation alone doesn’t paint a clear picture of how competitive the company is in the market, understanding the asset base, profit margins, and growth potential can give us some amount of clarity.

As of 23rd August, the data given by BSE shows the following banks as having the highest market capitalisation:

(All of the following data has been taken from official sources such as the company’s financial statement or BSE website)

Why are these banks ranking the highest? What strategies were adopted and what changes were made to the functionalities of the company, in the leadership and more? Let’s give a clear picture here:

HDFC Bank

HDFC ltd merged with HDFC Bank on July 1, 2023. After the merger of HDFC Bank and HDFC ltd, the management of the company went through a huge overhaul. Being one of India’s largest private sector banks, HDFC has shown substantial growth over the past year.

The bank had moved its IT and digital operations under CEO Sashidhar Jagdishan, led by Ramesh Lakshminarayanan, as it focused more on technology. Ashish Parthasarthy, who has led treasury since 2009, began to oversee the retail branch business, including deposits and product distribution.

ICICI Bank

ICICI was established in 1955 through the combined efforts of the World Bank, the Government of India, and Indian industry leaders. Its primary goal was to serve as a development financial institution, offering medium and long-term project financing to Indian businesses. Since its inception, ICICI bank has been propelling the Indian economy forward

As of 18th May, 2024, Mr. Bijith Bhaskar, Head of Cards, Payment Solutions, E-Commerce Ecosystem, Merchant Ecosystem, and Consumer Finance, resigned from his position.

Pradeep Kumar Sinha replaced GC Chaturvedi as Non- Executive Part time chairman on the 1st of July. Mr. Pradeep Kumar Sinha, an Indian Administrative Service officer from the 1977 batch, had a distinguished 44-year career. He held key roles in the Government of India, including Financial Advisor and Special Secretary in the Petroleum and Natural Gas Ministry, Secretary of Ports and Shipping, and Secretary of Power. Sinha served as Cabinet Secretary for over four years before joining the Prime Minister’s Office, retiring in March 2021.

State Bank Of India

The largest public sector bank in the country, SBI’s origins can be traced back to the nineteenth century. It has a rich history spanning over 200 years. In recent years, SBI has revolutionised its operations, embracing digital transformation to enhance customer experience and streamline services.

Dinesh Khara will retire from the position of chairman on Oct 7th of this year. Under his guidance SBI saw over ₹ 1.6 trillion in PAT. When Khara took office, this Indian Multinational’s annual profit was approximately ₹14,000 crore. It has now increased to a quarterly PAT of ₹17,000 crore.His successor, CS Shetty, who is currently a managing director at RBI, will have big shoes to fill.

Kotak Mahindra Bank

An Indian financial conglomerate, Kotak Mahindra group has been running since 1985. Their forerunner, Kotak Mahindra Bank, received its banking licence in February 2003. Since then, they have expanded their operations across India. Kotak Mahindra Bank was the first bank in India to serve as a clearing member for Foreign Portfolio Investors (FPIs) in commodity derivative trades.

This year the bank has majorly reorganised its senior management with announcements of key leadership changes such as KVS Manian becoming Joint Managing Director, and Shanti Ekambaram becoming Deputy Managing Director. Additionally, Devang Gheewalla succeeded Jaimin Bhatt as Group CFO on April 1, 2024. Milind Nagnur is elevated to Chief Operating Officer, and Paul Parambi becomes Group Chief Risk Officer.

Axis Bank

Axis Bank is the third largest private sector bank in India. This financial year, Axis Bank carved out a path of strong growth, innovation and ‘many-firsts’. The Bank introduced ‘open by Axis Bank’, its digital banking proposition, offering ~250 features through a modern, user-friendly interface. First, the ‘One-View’ feature on the Bank’s mobile app allows customers to manage their finances seamlessly across various banks.

Axis Bank has reappointed Amitabh Chaudhry as Managing Director (MD) and Chief Executive Officer (CEO) for another three years, from January 1, 2025, to December 31, 2027. Chaudhry, who took over as CEO in January 2019 after leading HDFC Standard Life, succeeded Shikha Sharma. During his tenure, he has spearheaded various initiatives, including modernising technology platforms and transforming business acquisition strategies. Notably, under his leadership, Axis Bank acquired Citibank’s retail division in India in 2023, marking a significant milestone for the bank.

Bank Of Baroda

Established on July 20, 1908, the Bank of Baroda is a state-owned banking and financial services organisation headquartered in Vadodara, Gujarat. As the third largest bank in India, it boasts a robust domestic presence with over 8,200 branches, 10,000 ATMs, 1,200 self-service e-lobbies, and 20,000 Business Correspondents.

Debadatta Chand (52), executive director of Bank of Baroda, has been elevated as the managing director and chief executive officer of the bank for three years from the date of assumption of office on or after July 01, 2023. The government appointed Debadatta Chand as executive director if Bank of Baroda in 2023

Indian Overseas Bank

Indian Overseas Bank (IOB), founded by Shri M.Ct.M. Chidambaram Chettyar in 1937, initially focused on foreign exchange. It expanded to 38 domestic and 7 international branches by 1947. Nationalised in 1969, IOB now operates in four countries: Singapore, Hong Kong, Thailand, and Sri Lanka.

Dhanraj T. was appointed as executive director for a 3 year term starting from 1st of March 2024. He brings with him years of insight into the sector as he has previously served as the chief general manager at the Indian Bank

Indusind Bank

IndusInd Bank is a financial services brand in India that serves around 37 million customers, including individuals, corporations, government entities, and PSUs. It operates 2,631 branches, 2,903 ATMs, and covers 143,000 villages. The bank also has offices in London, Dubai, and Abu Dhabi, offering products like micro-finance, personal and vehicle loans, credit cards, and SME loans.

IndusInd Bank Limited announced that Mr. Bijayananda Pattanayak – Head Gems & Jewellery business of the Bank ceases to be the part of Senior Management of the Bank upon his superannuation on December 31, 2023. The company also announced that Mr. Arun Khurana – Executive Director & Dy. CEO of the Bank has additionally taken over the Gems & Jewellery business from Mr. Bijayananda Pattanayak.

IDBI Bank

IDBI Bank Ltd, headquartered in Mumbai, is a full-service universal bank offering retail and corporate banking, treasury operations, and various financial products. It provides services like savings accounts, home loans, and investment banking through branches, ATMs, and digital platforms. Established on July 1st 1964 as a subsidiary of the Reserve Bank of India, IDBI operates under the Industrial Development Bank of India Act.

YesBank

YesBank is a full-service commercial bank that was founded by Rana Kapoor. It obtained its certificate of commencement in 2004 and entered into retail banking in 2005. Presently, this private sector bank offers a comprehensive range of products, services, and digital solutions to Retail, MSME, and Corporate clients. With a pan-India presence, YES BANK also operates an International Banking Unit (IBU) at GIFT City and maintains a Representative Office in Abu Dhabi.

Manish Jain was announced as the Country Head – Wholesale Banking, effective on the 27th of September 2023. He succeeded Ravi Thota, the Country Head of Large Corporations, who resigned for personal and professional reasons and officially departed with the bank a day prior. Additionally, Pankaj Sharma was appointed Chief Strategy and Transformation Officer on September 21, 2023.