Private Sector Banks in India – Private Sector Banks in India plays a major role in Financial Inclusion. This Article will give you the clear insights about Private Banks, Local Area Banks, Small Banks, Payment Banks, and Foreign Banks.
Introduction to Private Sector Banks in India:
The Indian Banking System comprises two major sectors of Banks. i.e. Public and Private Sector Banks. The former is controlled by the Government and the latter’s share or equity are held by private shareholders. The Private Sector Banks in India are divided into two groups. They are Old Private Sector Banks and New Private Sector Banks.
- Old Private Sector Banks existed prior to the nationalization in 1969 and kept their independence because they were either too small or specialist to be included in nationalization.
- The new private sector banks are those that have gained their banking license since the liberalization in the 1990s.
Difference between Public and Private Sector Banks in India:
|S No|| PUBLIC SECTOR BANKS||PRIVATE SECTOR BANKS|
|1||The ownership of the Public Sector Banks are the banks lies with the government.||The ownership of the Private Sector Banks is held by the individuals and corporations.|
|2||There are 27 Public Sector Banks||There are 21 Private Sector Banks|
|3||The interest rate on deposits is usually high||The interest rate on deposits is marginally lower|
|4||Market Share 72.9%||Market Share 19.7%|
|5||The customer base is very high||Customer base is comparatively low|
|6||Job security is there||Purely based on performance|
|7||The pension is there||No Pension|
Private Indian Banks
List of Private Sector Banks in India and their headquarters / Tagline:
|S No||Private Indian Banks||Headquarters||Tagline|
|01||Axis Bank|| Mumbai||Everything is the same except the name|
|02||Bandhan Bank|| Kolkata|| Aapka Bhala, Sabki Bhalai|
|03||Catholic Syrian Bank|| Ernakulam||Support all the way|
|04||City Union Bank|| Kumbakonam||Trust and Excellence|
|05||Development Credit Bank|| Mumbai|| –|
|06||Dhanalakshmi Bank|| Thrissur||–|
|07||Federal Bank|| Aluva||Your Perfect Banking Partner|
|08||HDFC Bank|| Mumbai||We Understand your World|
|09||ICICI Bank|| Mumbai||Hum Hai Na|
|10||IndusInd Bank|| Mumbai||We Make You Feel Richer|
|11||IDFC Bank|| Mumbai|| Banking Hatke|
|12||Jammu & Kashmir Bank|| Sri Nagar|
|Serving to Empower|
|13||Karnataka Bank|| Mangalore||Your family bank across India|
|14||Karur Vysya Bank|| Karur||Smart Way to Bank|
|15||Kotak Mahindra Bank|| Mumbai||Lets make money simple|
|16||Lakshmi Vilas Bank|| Chennai||The Changing Face of Prosperity|
|17||Nainital Bank|| Nainital||Banking with a personal touch|
|18||Ratnakar Bank|| Mumbai|| –|
|19||South Indian Bank|| Thrissur||Experience Next Generation Banking|
|20||Tamil Nadu Mercantile Bank|| Tuticorin||–|
|21||YES Bank Ltd|| Mumbai||Experience our Expertise|
Local Area Banks
What are Local Area Banks?
- The Local Area Bank Scheme was introduced in August 1996 pursuant to the announcement of the then Finance Minister.
- LABs were set up to enable the mobilization of rural savings by local institutions and, at the same time, to make them available for investments in the local areas. i.e., primarily in rural and semi-urban areas, comprising three contiguous districts.
- LABs were required to have a minimum capital of Rs. 5 crores.
Complete List of Local Area Banks and their Headquarters with Contiguous Districts:
|S. No||Local Area Banks||Contiguous Districts||Headquarters|
|22||Coastal Local Area Bank Limited||Krishna, Guntur and West Godavari|| Vijayawada in Andhra Pradesh|
|23||Krishna Bhima Samruddhi Local Area Bank Limited||Mahbubnagar in Andhra Pradesh and Raichur and Gulbarga in Karnataka|| Mahbubnagar, Andhra Pradesh|
|24||Capital Local Area Bank Ltd.||Kapurthala, Hoshiarpur and Jalandhar|| Phagwara, Punjab|
Small Finance Banks
What are Small Finance Banks?
- Small Finance Banks mainly focus and serve the needs of a certain demographic segment of the population.
- The minimum paid-up capital of such banks is Rs. 100 crores
- The aim is to provide financial inclusion to sections of the economy not being served by other banks. Those sections include small business units, small and marginal farmers, micro and small industries and unorganised sector entities.
Complete List of Small Finance Banks and their Headquarters / Taglines:
|S. No||Small Finance Banks||Headquarters||Tagline|
|25||Au Small Finance Bank Limited|| Rajasthan (Jaipur)|| Chalo Aage Badhe|
|26||Capital Small Finance Bank Limited|| Punjab (Jalandhar)||–|
|27||FINCARE Small Finance Bank Limited|| Gujarat (Ahmedabad)||–|
|28||Equitas Small Finance Bank Limited|| Tamilnadu (Chennai)|| Its Fun Banking|
|29||ESAF Small Finance Bank Limited|| Thrissur (Kerala)|| Joy of Banking|
|30||Suryoday Small Finance Bank Limited|| Maharastra (Navi Mumbai)|| A Bank of Smiles|
|31||Ujjivan Small Finance Bank Limited|| Karnataka (Bengaluru)|| Bharosa, Aap ke Bharose Par|
|32||Utkarsh Small Finance Bank Limited|| Uttarpradesh(Varanasi)|| Aapki ummed Ka kata|
|33||North East Small Finance Bank Limited|| Assam (Guwahati)|| Your Door Step Banker|
What are Payment Banks?
- Payments banks is a new model of banks conceptualized by the Reserve Bank of India (RBI).
- These banks can accept a restricted deposit, which is currently limited to ₹1 lakh per customer and may be increased further.
- These banks cannot issue loans and credit cards. Both current account and savings accounts can be operated by such banks.
Complete List of Payment Banks and their Headquarters / Taglines:
|S. No||Payments Banks||Headquarters|
|34||Airtel Payments Bank Limited|| New Delhi|
|35|| India Post Payments Bank Limited|| –|
|36||Fino Payments Bank Limited|| Mumbai|
|37||Paytm Payments Bank Limited|| New Delhi|
Private Foreign Banks
Complete List of Private Foreign Banks and their Country of Incorporation:
|S No||Foreign Banks||Country of Incorporation|
|01||Australia and New Zealand Banking Group Ltd.||Australia|
|02||Commonwealth Bank of Australia||Australia|
|03||National Australia Bank||Australia|
|04||Westpac Banking Corporation||Australia|
|05||Bank of Bahrain & Kuwait BSC||Bahrain|
|06||AB Bank Ltd.||Bangladesh|
|07||Sonali Bank Ltd.||Bangladesh|
|08||KBC Bank NV||Belgium|
|09||Bank of Nova Scotia||Canada|
|10||Industrial & Commercial Bank of China Ltd.||China|
|12||Credit Agricole Corporate & Investment Bank||France|
|15||HSBC Ltd||Hong Kong|
|16||Bank Internasional Indonesia||Indonesia|
|17||Mizuho Bank Ltd.||Japan|
|18||Sumitomo Mitsui Banking Corporation||Japan|
|19||The Bank of Tokyo- Mitsubishi UFJ, Ltd.||Japan|
|20||SBM Bank(Mauritius) Ltd||Mauritius|
|22||The Royal Bank of Scotland N.V.||Scotland|
|24||JSC VTB Bank||Russia|
|26||DBS Bank Ltd.||Singapore|
|27||United Overseas Bank Ltd||Singapore|
|28||FirstRand Bank Ltd||South Africa|
|29||Shinhan Bank||South Korea|
|30||Woori Bank||South Korea|
|31||Korea Exchange Bank||South Korea|
|32||Industrial Bank of Korea||South Korea|
|33||Bank of Ceylon||Sri Lanka|
|34||Credit Suisse A.G||Switzerland|
|36||CTBC Bank Co., Ltd.||Taiwan|
|37||Krung Thai Bank Public Co. Ltd.||Thailand|
|38||Abu Dhabi Commercial Bank Ltd.||UAE|
|39||Mashreq Bank PSC||UAE|
|40||National Bank of Abu Dhabi PJSC||UAE|
|41||Barclays Bank Plc.||United Kingdom|
|42||Standard Chartered Bank||United Kingdom|
|43||American Express Banking Corporation||USA|
|44||Bank of America||USA|
|46||J.P. Morgan Chase Bank N.A.||USA|
Frequently Asked Questions :
How many Indian Private Sector Banks are there?
As per the data from Reserve Bank of India’s Official Website, there are 21 Private Indian Banks.
Who gives License to Private Sector Banks in India?
Reserve Bank of India. The bank shall have a minimum net worth of 500 crore rupees at all times.
What are the Top Ten Private Sector Banks in India in terms of Market Capitalization?
Top Ten Ranking As of December 2017
|S No||Private Banks in India||Market Capitalization (Rs. Crore)|
|10||City Union Bank||11,836.38|
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