These three PSU Banks get new Chairman

 


The Appointments Committee of the Cabinet (ACC) has appointed former LIC Chairman M R Kumar as part time non official Director as well as non-executive Chairman of Bank of India (BOI).

 

He has been appointed as BOI Chairman for a term of three years.


ACC has also appointed Srinivasan Sridhar, as part time non official Director as well as non Executive Chairman on the Board of Indian Overseas Bank (IOB). Sridhar has been appointed for a term of three years subject to the condition that he resigns from the Board of Bank of Baroda.


In another decision, ACC has appointed Aravamudan Krishna Kumar as part time non official Director as well as non Executive Chairman on the Board of UCO Bank. Kumar has been appointed for a term of three years subject to his resignation from the Board of Suraksha Asset Reconstruction Limited, according to an order issued by the Department of Personnel & Training.

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PSU banks profit increased by 40% in FY24; Which is the top performing lenders?


Due to increased interest revenue, decreased credit costs, and better asset quality, public sector banks were able to record another respectable set of results for the December quarter. Twelve Indian public sector banks (PSBs) reported a total profit in Q3FY24 of Rs. 30,297 crore, up 3.84% from Rs. 29,175 crore during the same time the previous year.


PSBs have made a cumulative profit of Rs. 98,358 crore for the first nine months of the current financial year, up 40.17% from Rs. 70,166 crore during the same period last year. Public sector banks made a total profit of roughly Rs. 34,418 crore in Q1 and Rs. 33,643 crore in Q2 of the current fiscal year.

In Q3, Punjab National Bank's net profit increased by 253% YoY to Rs. 2,223 crore, making it the top performer in terms of percentage profit growth. Improved asset quality and increased interest revenue contributed to the largest profit in the previous fifteen quarters.


With a YoY increase in net profit of nearly 62% and a total of Rs. 1,870 crore, Bank of India emerged in second place, largely due to declining bad loan levels.

Following closely behind, Union Bank of India reported a 60% increase in net profit to Rs. 3,590 crore in Q3 FY24 from Rs. 2,245 crore in the December quarter of FY23. Its other revenue increased dramatically to Rs. 3,774 crore, up 15.37% YoY.

Similarly, the Central Bank of India reported a 56% YoY increase in net profit in Q3 FY23 to Rs. 718 crore, up from Rs. 458 crore in Q3 FY23.

In Q3 FY24, Bank of Maharashtra also reported strong results, with its net profit rising 34% to Rs. 1,036 crore. The bank reported a net profit of Rs. 775 crore for the same period in the previous year.

At a time when most public sector lenders are struggling to achieve double-digit growth, the bank recorded the highest growth rate in terms of deposit mobilization. In the third quarter ending in December 2023, just two of the twelve public sector banks—Bank of Maharashtra (BoM) and State Bank of India (SBI)—saw double-digit increase in deposits.

The standalone net earnings of Indian Overseas Bank, Canara Bank, and Bank of Baroda increased at rates of 30.27%, 27%, and 19% year over year, respectively.

State Bank of India (SBI) announced a 35.50% YoY decline in its standalone net profit to Rs. 9,164 crore, attributed to weaker other income and increased pay provisions. In 3Q, SBIN set aside Rs. 6,300 crore for wage-related expenses, representing a 17% increase in pay.

During the same period, standalone net profit of UCO Bank and Punjab & Sind Bank decreased year over year by 23% and 69%, respectively.

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State Bank of India(SBI) Q3 FY24 Net profit falls 35%

 


State Bank of India (SBI) on Saturday reported a net profit of Rs 9,163 crore for Q3 quarter for FY24, which was 35 per cent less than Rs 14,205 crore clocked in the year-ago period.


The public lender though reported a standalone net profit of Rs 40,378 crores for the first nine months of FY24, which was 20.40 per cent up from Rs 33,538 crore in Q3 FY23


The bank said it has earned Rs 105,733.78 crore in interest income in Q3 FY24, which was up 22% from Rs 86,616.04 crore reported in the year-ago period. Of which, the bank paid Rs 66,918 crore in interests in the October-December quarter. The net interest income (NII) of the country's largest bank stood at Rs 39,815 crore, missing estimates of Rs 40,304 crore.


Whole Bank NIM for 9MFY24 decreased by 1 bp YoY to 3.28% while Domestic NIM for 9M FY24 decreased by 8 bps YoY to 3.41%.


The bank's gross non-performing asset (NPA) stood at 2.42%, down from 3.14% recorded in the corresponding quarter last year. On the other hand, net NPA for the quarter stood at 0.64 per cent compared to 0.77 per cent last year. Bank’s returns on assets (RoA) for Q3FY24 stood at 0.62% while for 9MFY24 the RoA and returns on equity (ROE) stood at 0.94% and 19.47% respectively.


Gross NPA ratio at 2.42% improved by 72 bps YoY. Net NPA ratio at 0.64% improved by 13 bps YoY. PCR (Incl. AUCA) stands at 91.49%. Provision Coverage Ratio (PCR) at 74.17% declined by 195 bps YoY. Slippage Ratio for 9MFY24 improved by 5 bps YoY and stands at 0.67%. Slippage Ratio for Q3FY24 increased by 17 bps YoY and stands at 0.58%. Credit Cost for Q3FY24 remained flat YoY at 0.21%.The bank's operating profit for Q3 stood at Rs 20,336 crore.


Credit growth at 14.38% YoY with Domestic Advances growing by 14.47% YoY. Corporate Advances and SME Advances cross Rs 10 lakh crore and Rs 4 lakh crores. respectively. Foreign Offices’ Advances grew by 13.90% YoY. Domestic Advances growth driven by SME Advances (19.24% YoY) followed by Agri Advances which grew by 18.12% YoY. Retail Personal Advances and Corporate loans registered YoY growth of 15.28% and 10.71%, respectively. Whole Bank Deposits grew at 13.02% YoY, out of which CASA Deposit grew by 4.48% YoY. CASA ratio stands at 41.18% as on December 31, 2023.


The decline was as expected by analysts. Kotak Institutional Equities expected operating profit growth to be decline sharply by 18.3 per cent Y-o-Y to Rs 20,613 crore from Rs 25,219.3 crore earned in Q3FY23. 


"We are building net interest margin (NIM) to decline around 7 basis points Q-o-Q/19 bps Y-o-Y, but do see a possibility of stable performance given the structure of loan book and neglibile need for deposits to fund this growth. Operating expenses would be higher due to wage revision related costs (final settlement impact)," Kotak Institutional Equities said in its results preview report.

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Bank of Baroda(BoB) Q3 results: Net profit jumps 19%

 


Bank of Baroda on Wednesday, January 31, reported an 18.8% rise in net profit reaching ₹4,579 crore in the third quarter of the 2023-24 fiscal as compared to ₹3,852.7 crore last year. The lender's net interest income (NII) stood at ₹11,101 crore, slightly surpassing the CNBC-TV18 poll estimate of ₹11,085 crore.


This represents a year-on-year (YoY) increase of 2.6%, rising from ₹10,818.3 crore.


The bank displayed some improvement in asset quality, with Gross NPA (Non-Performing Assets) at 3.08% as opposed to 3.32% in the previous quarter.


Net NPA also witnessed a decline, standing at 0.70%, down from 0.76% in the previous quarter.

Gross NPA amounted to ₹32,317 crore, a decrease from ₹33,978.5 crore in the previous quarter. Net NPA reduced to ₹7,208.3 crore from ₹7,596.7 crore in the last quarter.


The bank made provisions of ₹666.3 crore, significantly lower than the ₹2,404 crore reported YoY and ₹2,160.6 crore in the previous quarter.


The Cost to Income ratio demonstrated a reduction by 123 basis points (bps) YoY, reaching 47.13% for the nine months ending December 2023 (9MFY24).


The Global Net Interest Margin (NIM) of the lender improved by 3 basis points sequentially, standing at 3.10% in Q3FY24, compared to 3.07% in Q2FY24.


The Net Interest Margin for 9MFY24 is reported at 3.14%.


The credit cost remained below 1%, reporting 0.69% for 9MFY24 and 0.39% for the quarter.


The bank maintained a healthy liquidity coverage ratio at 133% as of December 31, 2023.


Bank of Baroda's global advances registered growth of 13.6% YoY in Q3FY24, driven by robust retail loan book growth.
The bank's organic retail advances grew by 22%, propelled by growth in high-focus areas such as Auto Loan (24.3%), Home Loan (15.6%), Personal Loan (60.8%), Mortgage Loan (10.5%), and Education Loan (18.3%).


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Bank of India(BoI) Q3 net profit jumps 62%

 


Public sector lender Bank of India (BOI) on February 2 reported a net profit of Rs Rs 1,869.5 crore for the December quarter of the financial year 2023-24, up 62.4 percent from the year-ago period from Rs 1,151 crore.


The bank's gross non-performing asset (NPA) stood at 5.35 percent, down from 7.66 percent in the year-ago period. On the other hand, net NPA stood at 1.41 percent, improving from 1.61 percent.


State-owned Bank of India (BoI) on Friday posted a 62 per cent jump in net profit to Rs 1,870 crore in the December quarter on account of decline in bad loans. The Mumbai-headquartered bank had earned a net profit of Rs 1,151 crore in the year-ago period.


The lenders' total income increased to Rs 16,411 crore during the third quarter of the ongoing fiscal against Rs 14,160 crore a year ago, BoI said in a regulatory filing.


The interest income of the bank rose to Rs 15,218 crore as against Rs 12,728 crore in the third quarter of the previous year.


Gross Non-Performing Assets (NPAs) of the bank declined to 5.35 per cent of the gross loans by the end of December 2023 from 7.66 per cent a year ago.


Similarly, net NPAs, or bad loans, came down to 1.41 per cent from 1.61 per cent at the end of the third quarter.


Capital Adequacy Ratio of the bank improved to 16.06 per cent as against 15.60 per cent at the end of December 2022.


During the quarter ended December 31, 2023, the bank issued additional 44,91,01,796 equity shares of face value Rs 10 each at an issue price of Rs 100.20 under Qualified Institutional Placement (QIP) on December 11, 2023 and raised an amount of Rs 4,500 crore, it said.


Accordingly, the shareholding of the Government of India in the bank has reduced to 73.38 per cent as on December 31, 2023

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Indian Bank posts 52% rise in Q3 net profit

 


State-owned Indian Bank reported a 51.84 percent rise in its net profit to Rs 2,119.35 crore in the third quarter of financial year 2023-24. On a sequential basis, net profit of the lender rose 6.6 percent.


This was on the back of better asset quality and increase in fee based income.



Gross non-performing assets (NPA) of the bank as of December 31, 2023, stood at 4.47 percent, as against 4.97 percent last quarter and 6.53 percent last year. The company's net NPA stood at 0.53 percent, as against 0.60 percent in the last quarter and 1 percent last year.


In absolute terms, gross NPA eased to Rs 22,787 crore in October-December quarter, from Rs 24,488 crore in a quarter ago period and Rs 29,484 crore in a year ago period.


Net NPA fell to Rs 2,579 crore in December quarter, from Rs 2,826 crore a quarter ago and Rs 4,271 crore a year ago.


In the reporting quarter, the total deposit of the lender rose 10 percent on-year to Rs 6.54 lakh crore. On quarterly basis, deposits rose 2 percent.


Of the total deposit, bank have a domestic deposit of Rs 6.29 lakh crore and Rs 24,753 crore overseas deposits. On a yearly basis, domestic and overseas deposits grew 8 percent and 89 percent, respectively.


CASA deposit grew by 8 percent, savings deposit grew by 7 percent and Current deposit by 12 percent on a yearly basis. Domestic CASA ratio stood at 41.14 percent.


The advances of the state-owned lender grew 13 percent on-year to Rs 5.1 lakh crore in October-December quarter.


RAM (Retail, Agriculture & MSME) advances grew by 13 percent on-year to Rs 2.97 lakh crore in reporting quarter, from Rs 2.63 lakh crore in a year ago period. RAM contribution to gross domestic advances is 62.58 percent.


Retail, Agri & MSME advances grew by 14 percent, 16 percent and 7 percent on-year, respectively.


Home Loan (Including mortgage) grew by 12 percent on-year, Auto Loan by 46 percent on-year and Personal Loan by 30 percent on-year. Priority Sector portfolio stood at Rs 1.72 lakh crore in third quarter of the current financial year.


The net interest income (NII) of the bank rose just 6 percent on-year in the October-December quarter to Rs 5,815 crore. In the quarter ago period, it stood at Rs 5,741 crore and in a yearo ago period it stood at Rs 5,499 crore.


The net interest margins of the lender stood at 3.41 percent in October-December quarter, from 3.46 percent in a quarter ago period and 3.67 percent in a year ago period.


The total domestic investment of the lender increased in the reporting quarter by 13 percent to Rs 2.06 lakh crore. Domestic investment includes investment in SLR and non-SLR securities.


In SLR securities, investment in state government securities and central government securities rose 22 percent and 6 percent, on-year respectively. However, investment in treasury bills reduced by 33 percent.


As of December 31, 2023, the lender have securities worth Rs 1.47 lakh crore in held to maturity (HTM), Rs 59,024 crore in Available for Sale (AFS), and Rs 433 crore in Held for Trading (HFT).

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Indian Overseas Bank(IOB) Q3 results: Net profit rises 30%

 


Public sector lender Indian Overseas Bank on January 24 reported a net profit of Rs 722 crore for the October-December quarter of 2023-24, which marks a 30 percent jump from Rs 555 crore clocked a year ago.


The bank's gross non-performing asset (NPA) stood at 3.90 percent, down from 8.19 percent recorded in the same quarter last year. On the other hand, net NPA for the quarter stood at 0.62 percent, improving from 2.43 percent a year back.


The net interest income of the bank stood at Rs 6,176 crore for the quarter,

compared to Rs 5,056 crore in the corresponding quarter last year. The net interest margin of the bank contracted to 3.12 percent compared to 3.27 percent last year.


Total deposits of the lender stood at Rs 2.78 lakh crore compared to Rs 2.73 lakh crores last year. The current account and savings account (CASA) ratio of the bank stood at 43.49 percent against 43.65 percent last year. The bank's advances stood at Rs. 2.16 lakh crore compared to Rs 2.08 lakh crores last year.


The lender's credit deposit (CD) ratio stood at 77.74 percent compared to 67.99 percent.

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UCO Bank Q3 Net profit falls 23%

 


Public sector lender UCO Bank on January 24 reported a net profit of Rs 503.83 crore for the October-December quarter of financial year (FY) 2023-24, which marks a 22.8 percent falls as compared to Rs 652.97 crore clocked in the year-ago period.


The bank's gross non-performing asset (NPA) stood at 3.85 percent, down from 5.63 percent recorded in the same quarter last year. On the other hand, net NPA for the quarter stood at 0.98 percent, improving from 1.66 percent on a year-on-year basis.


UCO Bank's total business grew by 10.46 percent to Rs.435456 crore on y-o-y, wherein gross advances increased by 18.63 percent to Rs. 179195 crore on y-o-y & total deposits grew by 5.38 percent on y-o-y to Rs.256261 crore.


Public sector lender net interest income (NII) for the nine months ended December 31, 2023, stood at Rs.5914 crore registering a growth of 10 percent on the y-o-y basis as against Rs.5371 crore for the nine months ended December 31, 2023. The Provision Coverage Ratio improved to 95.21 percent as on December 31, 2023. as against 93.58 percent as on December 31, 2022, registering an improvement of 163 bps on y-o-y basis and 14 bps on q-o-q basis.


UCO bank has a network of 3217 domestic branches and 2 overseas branches each at Hong Kong and Singapore Centre & 1 representative office in Iran as of December 31, 2023.

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Punjab National Bank(PNB) Q3 profit jumps over three-fold


State-owned Punjab National Bank (PNB) on Thursday posted an over three-fold increase in its profit to Rs 2,223 crore for the third quarter ended December 2023.


The bank had earned a net profit of Rs 629 crore in the same quarter a year ago.


Its total income increased to Rs 29,962 crore during the quarter under review against Rs 25,722 crore in the same period last year, PNB said in a regulatory filing.


The bank's interest income rose to Rs 27,289 crore compared to Rs 22,384 crore in the third quarter of the previous fiscal.


Its gross non-performing assets (NPAs) declined to 6.24 per cent of the gross loans at the end of December 2023 from 9.76 per cent a year ago.


Similarly, net NPAs or bad loans came down to 0.96 per cent from 3.30 per cent at the end of the third quarter of the previous fiscal.

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Canara Bank Q3 Net profit rises 27%

 


Public sector lender Canara Bank on January 24 reported a net profit of Rs 3656 crore for the October-December quarter of financial year (FY) 2023-24 beating the estimates of Rs. 3,524.5 crore.


The lender marks a 26.87 percent jump in net profit as compared to Rs 2881.52 crore clocked in the year-ago period.


The bank's gross non-performing asset (NPA) stood at 4.39 percent, down from 5.89 percent recorded in the same quarter last year. On the other hand, net NPA for the quarter stood at 1.32 percent, improving from 1.96 percent on a year-on-year basis.


Shares of the lender closed for trading nearly 2.22 percent down at Rs 448 apiece on BSE.


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Bank Privatization Update: Government is preparing for privatization of many banks

 


Along with better performance, public sector banks have also reduced bad loans. Meanwhile, the government is busy making new preparations for privatization. A review of the list of public sector banks is being planned by representatives of the Reserve Bank of India along with the Finance Ministry.


According to a Live Mint report, a new panel with representatives from the Finance Ministry, NITI Aayog and the Reserve Bank of India is being considered to prepare a new list of candidates for privatization. NITI Aayog recommended privatization of two public sector banks and its suggestions have also been placed before the Finance Ministry. These two banks are said to be Central Bank of India and Indian Overseas Bank.


It has been said in the report that these two banks were discussed by Finance Minister Nirmala Sitharaman in the budget of 2021-22. Along with this, privatization of IDBI Bank and a general insurance company was also announced. However, due to some reasons this plan was halted and now its exercise is expected to start again in view of 2024.


The central government is considering a panel to identify some of the medium and small-sized banks for privatization. According to the report, the panel can also decide how much stake the government will reduce in banks. Besides, a decision can also be taken on the weightage given to banks having better financial parameters and reducing bad loans.


Before the proposed privatization process, banks have merged weak banks into bigger banks to strengthen small banks. A total of 10 public sector banks were merged from 1 April 2020. There are currently 12 public sector banks in India, up from 27 in 2017.


The 12 PSB banks include State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank, Punjab and Sindh Bank, Indian Bank, Union Bank of India, Bank of India, Bank of Maharashtra, Central Bank of India, UCO Bank and Indian Overseas. Banks are included.


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Union Bank of India Q3 Profit rises 60%


State-owned lender Union Bank of India reported a 60 percent rise in standalone net profit at Rs 3,589.91 crore for the fiscal third quarter. The net profit is in line with Motilal Oswal’s estimate of Rs 3,558.2 crore .


On sequential basis, net profit of the lender was up just 2.24 percent. In July-September quarter, Union Bank of India reported a net profit of Rs 3,511.42 crore.


On sequential basis, net profit of the lender was up just 2.24 percent. In July-September quarter, Union Bank of India reported a net profit of Rs 3,511.42 crore.


This was on back of improved asset quality and increase in net interest income.


The bank's gross non-performing asset (NPA) stood at 4.83 percent, down from 6.38 percent in the September quarter and 7.93 percent in the year-period, the lender said on January 20.

The bank's net NPAs stood at 1.08 percent against 1.30 percent in the pervious quarter and 2.14 percent in Q3FY23.


In absolute terms, the gross NPA of the banks stood at Rs 43,261.88 crore in October-December quarter, as against Rs 54,012.76 crore in a quarter ago period and Rs 63,770.16 crore in a year ago period.


Similarly, net NPA of the lender eased to Rs 9,351.23 crore in a reporting quarter, from Rs 10,471.01 crore in a quarter ago period and Rs 16,195.11 crore in a year ago period.


The net interest income (NII) of the lender in the reported quarter rose just 6.26 percent on-year to Rs 9,168 crore. In July-September quarter, NII stood at Rs 9,126 crore.


The non-interest income of the bank increased 15.29 percent on-year to Rs 3,774 crore. On sequential basis, net non-interest income rose 2.14 percent.


In October-December quarter, net interest margins (NIM) of the bank 3.08 percent, which was down 13 basis points (Bps) on-year and 10 bps on quarter.


One basis point is one hundredth of percentage point.


In a business update earlier this month, the lender reported a 10.67 percent year-on-year (YoY) growth in business at Rs 20.68 lakh crore in the December quarter.


The bank's total advances experienced an 11.44 percent YoY increase, reaching Rs 8.96 lakh crore, while deposits saw a notable 10.09 percent jump to Rs 11.72 lakh crore during Q3FY24.


Retail, Agri and MSME (RAM) segments of the Bank increased by 13.85 percent on-year , where 12.60 percent growth in Retail, 17.88 percent growth in Agriculture and 10.51 percent growth in MSME advances is achieved on a yearly basis.


RAM advances as a percent of Domestic Advances stood at 56.28 percent.


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Central Bank of India Q3 Net profit surges 57%


 Public sector lender Central Bank of India on January 19 reported a net profit of Rs 717.9 crore for the October-December quarter of financial year 2023-24, posting an 56.7 percent rise from Rs 458.22 crore a year ago.


The bank's gross non-performing asset (NPA) stood at 4.50 percent, down from 8.85 percent recorded last year. On the other hand, net NPA for the quarter stood at 1.27 percent, improving from 2.09 percent on a year-on-year basis.


Central Bank of India's net interest income (NII) increased by 14.45 percent to Rs 9355 crore for 9 9-month period ended on December 31, 2023, over the corresponding period of last year.

However bank's Net Interest Margin (NIM) improved to 3.33 percent (6 bps, for 9 month period ended on December 31, 23, over the corresponding period of last year. Bank's total income (Interest Income plus Non-Interest Income) for Q3FY24 improved by 19.68 percent, from Rs 7636 crore in Q3FY23 to Rs 9139 crore in Q3FY24.

Central Bank of India has having pan India presence with network of 4494 branches with 65.29 percent (2934 branches) in rural & semi-urban areas, 4083 ATMs, and 11207 BC Points with total of 19784 Touch Points as of December 2023.


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Bank of Maharashtra Q3 Net profit rises 34%


Bank of Maharashtra on January 16 reported a 33.61 percent on-year rise in its October-December quarter net profit to Rs 1,036 crore, on the back of rising net interest income and better asset quality.


Operating Profit has shown a growth of 27.32 percent on-year to Rs 2,012 crore for the third quarter of the current financial year as against Rs 1,580 crore in a similar period last year. The same has improved by 4.77 percent on-quarter.


In the reporting quarter, net Interest Income (NII) grew by 24.56 percent on-year to Rs 2,466 crore, as against Rs 1,980 crore in a similar period last year, Bank of Maharashtra said in an exchange filing. The same was up by 1.39 percent on a sequential basis.


Gross non-performing assets (NPA) of the bank declined to 2.04 percent as on December 31, 2023, against 2.94 percent as on December 31, 2022. Net NPA declined to 0.22 percent as on December 31, 2023, as against 0.47 percent as on December 31, 2022.


Provision Coverage ratio of the bank improved to 98.40 percent as on December 31,2023, as against 97.18 percent as on December 31, 2022.


Bank holds cumulative Covid-19 provision as contingency provision of Rs 1,200 crore as on December 31, 2023, release said.


In the reporting quarter, total business of the bank grew by 18.89 percent on-year to Rs 4.34 lakh crore.


Total Deposits rose 17.89 percent on-year in October-December to Rs 2.46 lakh crore. Gross Advances grew by 20.20 percent on-year Rs 1.89 lakh crore. Net Advances grew by 21.01 percent on-year to Rs 1.85 lakh crore.


RAM (Retail, Agri. & MSME) Business grew by 27.25 percent on-year basis. Retail advances grew by 21.91  percent to Rs  49,144 crore on-year basis. MSME advances grew by 29.14  percent on Y-o-Y basis to Rs 39,410 crore.


Total Basel III Capital adequacy ratio stood at 16.85 percent with Common Equity Tier 1 ratio of 11.56 percent.

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Which is the Best Banks in India 2023

In the current age, having a bank account is essential. Moreover, all financial subsidies given by the government are also routed through bank accounts. Also, the financial inclusion initiatives taken by the government have ensured almost all citizens have a bank account. There are 34 banks in India, out of which 12 are public sector banks, and the rest are private sector banks. This article covers the best public and private sector banks in India.

1. State Bank of India

State Bank of India (SBI) is among the Fortune 500 companies. It is an Indian multinational and Public Sector Banking and Financial services firm. The company has its headquarters in Mumbai, India.  SBI has over 200 years of rich heritage and legacy and is the most trusted bank by Indians for generations.

The bank’s core values revolve around Service, Transparency, Ethics, Politeness, and Sustainability. Also, the bank constantly strives to focus on innovation and customer-centricity.

SBI is the largest Indian bank with a 1/4th market share. Moreover, the bank serves over 44 crore customers through its wide network. It has more than 20,000 branch offices, 58,500 ATM centres, and 66,000 BC outlets. Also, the bank has presences across the globe in 22 countries with around 233 offices.

Furthermore, in addition to banking services, the bank has also diversified into other businesses. SBI has 11 subsidiaries, to name a few, SBI Mutual Fund, SBI Life Insurance, SBI General Insurance, SBI Card, etc.

2. Punjab National Bank

Punjab National Bank (PNB) is a government-owned bank under the ownership of the Ministry of Finance. Founded in 1894 in Lahore, it is the second-largest government bank in the country, with a global business of INR 18,09,587 crore. During its long history, nine banks have been merged with Punjab National Bank. The most recent merger being with Oriental Bank of Commerce and United Bank of India.

It has a PAN India presence with a network of 10,925 branches, 13,914 ATMs, 12,346 business correspondents as of December 2020. Also, its low-cost Current Account and Savings Account Deposits (CASA) has a share of 44.66% in these deposits.

PNB has two international branches, one in Hong Kong and one in Dubai. Moreover, it has two overseas subsidiaries in London and Bhutan under the names PNB International Limited and Druk PNB Bank Limited, respectively. It also has a joint venture in Nepal under the name Everest Bank Ltd.

Punjab National Bank focuses on progressing towards digitalisation, and as a result, PNB mobile banking users crossed 96 lakhs, and internet banking users have crossed 250 lakhs.

In 2020, it won many awards, and the most notable ones are Most Innovative Public Sector Bank of the Year by ET-BFSI Excellence Awards 2020 and Winner of the Most Innovative Project Using Technology – PNBOne by IBA Banking Technology Award 2020.

3. Union Bank of India

Union Bank of India is one of the listed leading public sector banks in India. The government of India holds an 89.07% share in the bank’s capital. Established in 1919, the bank has its headquarters in Mumbai, Maharashtra. Union Bank of India is a network of 9500+ domestic branches and 13,300+ ATMs. Moreover, it has 11,700 business correspondent points, and over 75,000 employees serving over 120 million customers.

The bank has three overseas branches Sydney, Dubai, and Hong Kong. Moreover, it has a representative office in Abu Dhabi, one subsidiary in London, and a joint venture in Malaysia. It also has three para banking subsidiaries and three joint ventures, which includes two in the life insurance business.

After amalgamating Andhra Bank and Corporation Bank, the bank’s business as of 1st April 2020 stood at INR 15,34,749 crore. In 2020, the bank received multiple awards in technology, innovation, and also financial inclusion.

4. HDFC Bank

Founded in August 1994, The Housing Development Finance Corporation Ltd or HDFC is the first private financial institution to receive ‘in-principle approval from the Reserve Bank of India (RBI). The bank has its registered office in Mumbai. It has its presence in more than 2,902 cities/towns with more than 5,608 branches and 16,087 ATMs across India.

The business’s core values revolve around excellence, customer focus, product leadership, people, and also sustainability. HDFC has the following three businesses: retail banking, wholesale banking and treasury.

The retail banking wing focuses on a diverse range of financial products and banking services. Customers can also enjoy banking services through the growing network of branches and ATMs. Moreover, digital channels such as Net banking, Phone banking and Mobile banking have made it easy for customers to perform transactions.

On the other hand, wholesale banking offers commercial and transactional banking services to organisations and businesses. It includes working capital finance, trade services, cash management and also transactional services.

Under the Treasury business, HDFC helps businesses generate better returns from their funds. Also, the three main product areas on which HDFC focuses are equities, money market and debt securities, foreign exchange and derivatives.

5. ICICI Bank

ICICI Bank is one of the leading private banks in India. The World Bank, the Government of India, and representatives from Indian industry came together to form ICICI in 1955. The main goal was to establish a development financial institution that would provide medium-term and also long-term project financing to Indian companies.

ICICI largely based its activities on infrastructure financing until the late 1980s, supplying long-term funds to a number of industrial ventures. With the liberalisation of India’s financial sector in 1991, ICICI transformed its business from a development financial institution to a diversified financial services provider. As part of the ICICI group, ICICI Bank was established in 1994. Moreover, ICICI became the first Indian corporation and the first non-Japanese Asian bank or financial institution to be listed on the New York Stock Exchange in 1999.

The bank currently offers a wide range of banking and financial services. It serves both corporate and retail customers through a wide range of delivery channels and companies. ICICI Bank in India has a strong network of 5,288 branches and 15,158 ATMs.

6. Kotak Mahindra Bank

Kotak Mahindra Finance Ltd. was launched in 1985. And has currently emerged as India’s most trusted financial institution.

Kotak Mahindra Bank has more than 1,600 branches and 2,519 ATMs. The bank currently has more than 23 million active customer base. It also has an international presence in the USA, Middle East, London, and Singapore.

The bank constantly strives to seize new opportunities by differentiating across products, services and technologies. The bank has multiple businesses such as – banking (consumer, commercial, and corporate), equity broking, credit and financing, insurance (general and life), wealth and asset management, and investment banking – of individuals and corporations.

7. Bank of Baroda

Bank of Baroda, a bank that started a century ago in a small building, now has a global presence across 19 countries. Established in 1908, the bank currently has 8581 branches, out of which 96 are overseas branches, and serves more than 131 million customers. The bank has a strong presence in rural and semi-urban areas. Recently Dena Bank and Vijaya Bank have been merged with Bank of Baroda.

The bank has six subsidiaries in the domestic market, capital markets, and financial solutions. It also has joint-ventures in insurance. Moreover, the bank has subsidiaries in 7 countries, including Botswana, Kenya, Uganda, Guyana, New Zealand, Tanzania, and the UK. It also has joint-ventures in Malaysia and Zambia. Also, in 2020, Baroda Gurkul has won Baroda Radio & Best Learning Platform implementation of the year.

8. Bank of India

Bank of India was a private bank established in 1906 in Mumbai. It was one of the banks out of the 13 banks that were nationalised in 1969. Over the years, the bank has expanded its operations in and out of India as well.

Bank of India has more than 5200 branches in the country, controlled by 69 zonal offices and 13 NGB offices. The bank’s international presence in 18 countries across five continents includes 52 offices, four subsidiaries, one representative office, and one joint venture. The bank first issued shares to the public in 1997.

Bank of India was one of the first nationalised banks to introduce a fully computerised branch and ATM facility in 1989. It was always at the forefront to introduce various innovative services and systems.

9. Axis Bank

Axis Bank is the third-largest private bank in India and was established as a new generation private bank in 1994. The bank offers an entire spectrum of financial services covering all customer segments, including large and midcap corporates, retail businesses, agriculture, and MSME sectors.

The bank’s network is very large, with 4,594 branches (of which 4,050 are domestic), 11,333 ATMs, and 5,710 cash recyclers spread across the country. All international operations of the bank are done through eight international offices in 6 countries. The international offices mainly focus on investment banking, liability businesses, corporate lending, trade finance, and syndication.

As of 31st March 2021, the bank’s balance sheet size is INR 9,96,118 crores. Moreover, it has achieved a 5-year CAGR of 13%, 13% and 15% in assets, advances and deposits, respectively.

The bank has 11 subsidiaries in India, and some of these businesses are capital markets, securities, private equity, trustee services, and asset management services.

10. Canara Bank

Canara Bank was established in 1906 as Canara Hindu Permanent Fund Ltd and in 1910 was renamed Canara Bank. It was one of the 14 banks that was nationalised in 1969. Canara Bank is widely known for its customer centricity and has emerged as a ‘Financial Conglomerate’ with almost ten subsidiaries and joint ventures in India and abroad.

As of December 2020, the bank has a network of 10,491 branches, 12,973 ATMs and a customer base of 10.90 crore customers. In over a century, the bank has achieved several firsts. It is the first bank to launch an inter-city ATM, issue credit cards to farmers, and even obtain an ISO certificate for a branch.

Canara Bank has branches in 6 countries, namely, UK, Hong Kong, the USA, UAE, Russia, and Tanzania. The company’s subsidiaries include asset management companies, financial services, securities, venture capital, and bank securities. In 2020, the bank received awards across technology, innovation and financial services.


Difference Between Private and Public Sector Banks

The following characteristics would clarify the distinction between banks in the private and public sectors:

  1. The government owns major shares in public sector banks, whereas private stockholders own the shares in private sector banks.


  2. Public sector banks own a total chunk of 72.9% of the market share, while private sector banks hold a share of 19.7%. Therefore, public sector banks control most of the Indian banking industry.

  3. Public sector banks have a substantially larger customer base than commercial banks.

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

  5. Deposit interest rates offered by the public sector banks are greater than those in private sector banks.

Both public and private sector banks offer safe banking activities throughout India. However, the public sector banks, which are nationalized banks, are safest in terms of banking in India. There are 14 nationalized banks in India, including the State Bank of India, Punjab National Bank, Bank of Baroda, and Bank of India.
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Which is the top 10 Largest Banks 2023




 

For a developing nation like India, the banking sector plays a vital role in helping the economy move forward. Banks offer loans to agricultural as well as commercial players. Do you know about Top 10 best banks in India or top banks in India as per the Reserve Bank of India (RBI).

There are total 12 Public Sector Banks, 21 Private Sector Banks, and 46 Foreign Private Sector Banks in our country at present. 

Here we will take a quick look at the Top 10 banks in India with respect to market capitalisation, while also exploring some related aspects.

Below is the list of top 10 largest banks in India in 2023.

The list is based on the number of branches, ATMs, employees, assets and revenues of the banks.


HDFC Bank 

As of January 2023, HDFC enjoys a market capitalization of Rs. 9.34 trillion. Headquartered in Mumbai, Housing Development Finance Corporation Ltd. HDFC is the largest private sector bank in India at present and also ranked as Number 1 Bank in India according to as per Forbes World's Best Bank survey. The bank offers a wide variety of products and services including but not limited to Retail and Wholesale Banking, Personal Banking, Home, Auto, and Business Loans, Lifestyle Loans, Credit and Debit Cards. The bank also boasts of rolling out leading digital products such as Payzapp and SmartBUY.

 

Some of the important facts about the bank are:

  • Number of Branches – 6,342
  • Number of ATMs – 18,130
  • Number of Employees – 1.41 Lakh+
  • Number of POS Terminals – 2,43,888
  • Number of Debit Cards – 4 Crore
  • Number of Credit Cards – 1.76 Crore


State Bank of India (SBI)


The State Bank of India (SBI) is a government bank in India that boasts a market capitalization of Rs. 5.34 trillion. The largest public sector bank of India and second in the list of 10 best banks in India, as well as a financial services statutory body. SBI is headquartered in the financial capital of the nation, Mumbai.

In the year 2021, the State Bank of India ranked 221st in the Fortune Global 500 list of the world’s biggest corporations and also won Best Transaction Bank in India by “The Asian Banker” for the second time in a row. It is also called the biggest bank in India. SBI enjoys a market share of 23% in India and has a commendable presence in the overseas arena with over 233 foreign offices across 36 countries.

Some of the important facts about the bank are:

  • Number of Branches – 22,219
  • Number of ATMs – 62,617
  • Number of Employees – 2,45,642
  • Number of POS Terminals – 6.08 Lakh

ICICI Bank


The Industrial Credit and Investment Corporation of India, popularly known as ICICI Bank has a market capitalization of Rs. 6.08 trillion, as on 23 Jan 2023. It is the third largest among the top banks in India.

Headquartered in Mumbai, the registered office of the bank is in Vadodara of Gujarat. As of last year’s update, the consolidated assets of the bank clocked at Rs. 12.50 trillion. ICICI Bank enjoys a commendable overseas presence with subsidiaries across Canada and the United Kingdom. The bank also boasts of branches in China, Hong Kong, United States of America, South Africa, Sri Lanka, Dubai International Finance Centre, Qatar, Singapore, Bahrain, and Oman, complete with representative offices in UAE, Malaysia, Indonesia, and Bangladesh.

Some of the important facts about the bank are:

  • Number of Branches – 5,275
  • Number of ATMs – 15,589
  • Number of Employees – 97,354

Kotak Mahindra Bank


Kotak Mahindra Bank registered a market capitalization of Rs. 3.55 trillion, as of January 2023. Established in the year 2003, the bank now enjoys the title of being the 4th largest private sector bank in the nation. Last year, the bank generated a revenue of Rs. 58,882 Crores.

Some of the important facts about the bank are:

  • Number of Branches - 4,758
  • Number of ATMs - 10,990
  • Number of Employees – 78,300
  • Number of Cash Recyclers - 5,972

Axis Bank


With a market capitalization of Rs. 1,90,562.56 crores, Axis Banks fares 4th on the list of the largest private sector banks in India. Known for its financial services primarily directed at large and mid-size corporates, along with SMEs and retail businesses, the bank clocked a revenue of Rs. 68,116 crores in the year 2019.

Some of the important facts about the bank are:

  • Number of Branches – 4,050
  • Number of ATMs – 11,800+
  • Number of Employees – 55,000+
  • Number of Cash Recyclers – 4,917

IndusInd Bank 


Known to be the leading new generation private bank of India, the IndusInd Bank enjoys a market capitalization of Rs. 936.47 billion. Established back in the year 1994, the bank is headquartered in Mumbai, with most of its branches concentrated in the Indian Metro Cities of Mumbai, Delhi, and Chennai. It also boasts of overseas presence owing to its representative branches in Dubai, Abu Dhabi, and London.  The bank clocked a revenue of Rs. 38,230 Crores in the year 2022.


Some of the important facts about the bank are:

  • Number of Branches – 2,015
  • Number of ATMs – 2,886
  • Number of Employees – 33,582+

Yes Bank


Yes Bank has earned the reputation of being the fastest growing private sector bank in India, and its market capitalization of Rs. 523.31 billion stand testimony to this fact. Known for its asset management and retail banking functions, the bank was founded in the year 2004 by Rana Kapoor and Ashok Kapur. The bank clocked a revenue of Rs. 25,423 Crores in the year 2022.

Some of the important facts about the bank are:

  • Number of Branches – 1,000+
  • Number of ATMs – 1,800+
  • Number of Employees – 23,800+


Punjab National Bank

Punjab National Bank, popularly known as PNB, has a market capitalization of Rs. 626.53 billion. A public sector undertaking, this leading bank has revenue of Rs. 88,339 Crores. What makes this establishment a leading bank of the nation is its commendable base of over 180 million customers.

PNB enjoys a creditable overseas presence with branches in Dubai and Hong Kong, complete with Offshore Banking Unit in Mumbai. Then again, PNB has 7 Subsidiaries in the UK, and 9 in Bhutan. Besides, the bank has 122 Joint Venture Branches in Nepal.

Some of the important facts about the bank are:

  • Number of Branches – 12,248
  • Number of ATMs – 13,000+
  • Number of Employees – 1,03,144


Bank of Baroda

Bank of Baroda also known as BoB, is yet another public sector bank which enjoys a place amongst the Top 10 Banks in India 2023 with a high market capitalization of Rs. 932.40 billion. Headquartered in Vadodra, the bank gained unprecedented popularity in April 2019, for witnessing the first ever 3-way merger, with Dena Bank and Vijaya Bank. The bank had a revenue of Rs. 82,859.5 Crores in 2021 and boasts of a spectacular base of over 132 million customers.

Some of the important facts about the bank are-

  • Number of Branches - 9,500+
  • Number of ATMs - 13,000+
  • Number of Employees - 79,806+


Bank of India


Bank of India, also known as BoI, clocked a market capitalization of Rs. 359.68 billion, on Jan 23, 2023. Headquartered in Mumbai, BoI is a founding member of the Society for Worldwide Interbank Financial Telecommunication, also known as SWIFT. The bank clocked revenue of Rs. 45,955 crores last year.


The bank enjoys as many as 5,108 branches and 5,551 ATMs around the world (including 24 outside India like Botswana, France, Hong Kong, Japan, Kenya, New Zealand, Singapore, United States, Tanzania, UK, Uganda, South Africa, and Vietnam).

Some of the important facts about the bank are:

  • Number of Branches (in India) - 5,108
  • Number of Employees - 51,459

We hope that you now have a fair idea regarding the leading banks of India, on the basis of their recent market capitalization value.

 

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