Banks are the oldest form of financial intermediaries in India. They play a key role in channelizing the savings of the household sector to organized and unorganized sectors. The Indian Banking System consists of R.B.I as a central bank, Indian Commercial Banks, Industrial Banks, Exchange Banks, Agricultural Banks, Cooperative Bank, and Indigenous Bankers.

In the end, one thing, if you thinking about opening an account in Private Bank for better services, there are many more options to choose the best bank for an opening bank account.

Types of Banks in India?

In India, Banks are grouped into four major sections, which are:

1. Commercial Banks: These banks are further categorized into four categories-

• Private Sector Banks
• Public Sector Banks
• Regional rural banks
• Foreign banks

2. Small Finance Banks

3. Payments Banks

4. Co-operative Banks

What are private sector banks?

Based on ownership, the banks in which the maximum stake of shares or equity is maintained and owned by private individuals. but the banking function and are governed by II schedule of RBI Act, 1934.

The reason for their quick growth was because they used the latest technology, used new monetary tools, provided contemporary innovations, and always focus on customer satisfaction.

Note: At that time In India 21 Private banks in India.

Variation between Private and Public Sector banks

Here are some features that would illuminate the difference between private and public sector banks:

• A public sector bank means fully or more than 50% owned by the Government of India and whereas private shareholders hold the majority stake in private sector banks.
• As a whole, there are 12 public sector banks after the merger of some and 21 private banks, along with four local area banks.
• The total market share of public sector banks is 72.9%, whereas the share of private sector banks is 19.7%. Therefore, public sector banks are dominating the Indian Banking system
• Public sector banks have a significantly larger customer base than the private banks
• In public sector banks, there is a lot more transparency in terms of interest rate policies as compared to the private banks
• The interest rates on the deposits done in public sector banks are higher than in private sector banks

List of Private Banks in India (2022)?

here is the List of Private Banks in India 2022

This table would help you get an insight into the establishment of the banks. Let us get to apprehend more about the…

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Best 5 Private Banks in India?

1. HDFC Bank

Tagline: “We understand your world”

It is said to be one of the biggest private banks in India in terms of complete assets and market capitalization. It is the first Bank that got ‘in-principle permission from RBI to establish a bank in the private sector as a division of RBI’s liberalization of the Indian Banking Industry in 1994.

In fact, their tagline itself is “We understand your world,” and they completely abide by it by offering great services. HDFC is one of the top-performing banks, and it comes under the listing of the 100 most valuable brands across the world.

In a surprise move on April 4, 2022, the HDFC twins announced the merger between HDFC and HDFC Bank, and now HDFC Bank is No.3 (after TCS & Reliance Industry) Largest Company according to their Market Capitalization.

Its banking network is also huge; globally, they have more than 5430 branches and 15292 ATMs.

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2. ICICI Bank

It is the second-largest private sector bank in India. ICICI bank started in 1994, and its registered office is in Vadodara, Gujarat. as its total consolidated assets were Rs.14.76 trillion in 2020. ICICI has a large network of branches nationwide; they have 5288 branches and 15158 ATMs across the country and total employees of more than 85000 people in the country. ICICI bank offers services to the customers via several delivery channels and its group companies.

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3. Kotak Mahindra Bank

KMB is the Third-largest private sector bank in India. It has become one of the most popular banks in India after it acquired ING Vysya Bank in 2015. It started in 1985 as Kotak Mahindra Finance Ltd, but later it changed to Bank in 2003, and since then it has gained a lot of popularity in private sector banks by offering amazing products.

They got the license from RBI and became the first non-banking finance company in India to convert into a bank. They have majorly four units: Consumer Banking, Corporate Banking, Commercial Banking, and Treasury; this serves to retail and corporate sectors in both rural and urban areas in the country.

Kotak Mahindra Bank has more than 1579+ bank branches and 2391+ ATMs that cover over 746 locations. Their headquarters is in Mumbai.

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4. Axis Bank Ltd

It is the Fourth-largest private sector bank in India. Axis Bank was incorporated in 1994, and its headquarter is in Mumbai. This Bank has international offices in 11 countries: Singapore, Dubai, Shanghai, Hong Kong, Colombo, and Gift City-IBU. It has its representative offices in Dubai, Abu Dhabi, Sharjah, Dhaka, and an overseas subsidiary in London, UK.

After ICICI and HDFC bank, Axis has the maximum number of ATMs across the country. They have more than 12000 ATMs, 4533 cash recyclers, and 4528 branches in the country.

Recently Private lender Axis Bank has acquired Citi India’s retail assets, valuing the business at nearly $2 billion.

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5. Indusind Bank Ltd

This is one of the best private banks in India. They kept this name because they were inspired by the Indus Valley civilization, which is the greatest ancient culture in the world. Induslnd bank offers great services to its customers and ensures that all its clients are completely satisfied

It is headquartered in Pune and has a huge network of more than 5000 distribution pints and over 2000 bank branches, and 2606 ATMs

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FAQs

Q1) How many private banks are there in India?

In 2022, many banks got merged, and now there are 21 private banks in India as of 2022. Including IDBI Bank.

Q2) Which are the 21 private banks?

Here is the list of all the private banks for you:

• Axis Bank
• Bandhan Bank
• CSB Bank
• City Union Bank
• DCB Bank
• Dhanlaxmi Bank
• Federal Bank
• HDFC Bank
• ICICI Bank
• IDFC BANK
• IDBI Bank
• IndusInd Bank
• Jammu & Kashmir Bank
• Karnataka Bank
• Karur Vysya Bank
• Kotak Mahindra Bank
• Nainital Bank
• RBL Bank
• South Indian Bank
• Tamilnad Mercantile Bank
• YES Bank

Q3) Which is the No.1 private bank in India?

Although, all the banks are good and it totally depends on your requirement which bank suits you. But, as per total sales, revenue, and market capitalization. HDFC wins the number one private bank in India. In fact, it has the highest Profit maker in the banking list at Rs. 31,833 Cr the previous year 2021

Q4) Who is the No 1 private bank in India?.

As per total sales, revenue, and market capitalization. HDFC wins the number one private bank in India.

Q5) How many private banks are in India?

At present, there are 21 private banks in India, as of 1 April 2022.