Which are India’s Top 5 Banks by Market Share? In this article, we will discuss the market share of the Top 5 Banks in India in deposits, loans and advances in the 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 Best 5 Banks in India – SBI, HDFC, Kotak, ICICI & Axis Bank

Introduction

Which are the Top Best 5 Banks in India  by Market Share? In this article, we will discuss the market share Top 5 Banks in India in deposits, loans and advances in the banking industry. Aside from discussing the banks that are performing well now, we will talk about which banks will have a strong future post the COVID-19 pandemic and which banks should be avoided.

India’s Top 5 Banks by Market Share

Total Deposit and Credit Market Share

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

The best 5 banks in India  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 biggest 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 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 the public sector top banks in India like SBI bank.
• As the situation improves, private sector banks will again start seeing traction.
• After SBI, market share of HDFC bank in banking sector is the second largest followed by ICICI bank, Axis Bank and Kotak Mahindra Bank.
• If we look at the total market share of the best 5 banks in India mentioned above, accounts for ~45% of the total market share in deposits and 46% in total market share of credit.

Total Incremental Flow in FY 2019-20

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 biggest banks in India (SBI, HDFC, Axis, ICICI and Kotak Mahindra) accounts for a 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 of banks in India from other banks to top 5 banks, which will be a matter of concern for other public and private players in the banking industry as their business is likely to be affected due to higher market share of these banks.
• Those banks with strong performance are likely to get stronger as the market share becomes increasingly consolidated, and those with weak performance are likely to keep getting weaker.