Market Share of India’s Top 5 Banks by Deposits & Credits

3 min read
Which are India's Top 5 Banks by Market Share? In this article, we will discuss the market share Top 5 Banks in India in deposits, loans and advances in banking industry. We will also discuss the banks which have strong performance in the current times, as well as which banks will be the front runners post the COVID-19 pandemic and which banking stocks to avoid.

Market Share of Top 5 Banks in India – SBI, HDFC, Kotak, ICICI & Axis Bank

Introduction

Which are India’s Top 5 Banks by Market Share? In this article, we will discuss the market share Top 5 Banks in India in deposits, loans and advances in banking industry. We will also discuss the banks which have strong performance in the current times, as well as which banks will be the front runners post the COVID-19 pandemic and which banking stocks to avoid.

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India’s Top 5 Banks by Market Share

Total Deposit and Credit Market Share

Total Deposits with Scheduled Commercial Banks is ~INR 135 lakh crore and Total credit is ~ INR 103 lakh crore. Out of which major market share is with top 5 banks which is as shown below.

India's Top 5 Banks by Market Share
India’s Top 5 Banks by Market Share in Deposits & Credits (Advances)
  • As seen, SBI has the largest market share in deposits (23.9%) and credits (22.5%), being the largest public sector bank in India.
  • Before 5-7 years, market share of SBI in Deposits and Credit was ~30%, however it declined due to major competition from major private sector players like HDFC, ICICI, Axis, Kotak Mahindra, etc
  • In the recent times, due to the current turmoil in banking industry mainly due to Yes Bank issue, consumers have become risk averse and prefer safety of principle over incremental returns. This led to higher incremental flow in public sector giants like SBI bank.
  • As the situation improves, private sector banks will again start seeing the traction.
  • After SBI, HDFC bank has the second largest market share followed by ICICI bank, Axis Bank and Kotak Mahindra Bank.
  • If we look at the total market share of Top 5 banks mentioned above, accounts for ~45% of the total market share in deposits and 46% in total market share of credit.

Total Incremental Flow in FY2019-20

Market Share of Top 5 Banks in Total Incremental Flow
  • As seen from the above table, total incremental flow of Deposits in FY19-20 is ~INR 10 lakh crore, out of which share of top 5 banks (SBI, HDFC, Axis, ICICI and Kotak Mahindra) accounts for whooping ~72%.
  • Similarly, incremental credit loans in FY19-20 is ~INR 6 lakh crore, out of which these top 5 banks have a market share of ~76%
  • This shows us the conservative nature of customers which has resulted in a shift of market share from other banks to top 5 banks, which will be a matter of concern for other public and private players in banking industry as their business is likely to be affected due to higher market share of these banks.
  • As the market share gets more consolidated, banks with strong performance will get stronger and those with weak performance will keep getting weaker.

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