written by | May 9, 2022

Which are the Largest Commercial Banks in India?

When it comes to financial institutions, many largest commercial banks in India manage all aspects of deposit and withdrawal of money for the general public and issuing loans for investment purposes, among other things. These financial institutions are profit-driven enterprises that operate solely to generate profits.

The State Bank of India (SBI) is the largest commercial bank in India. The headquarters of India's largest bank, ICICI Bank, is located in Mumbai, Maharashtra. Sixteen regional hubs and 57 zonal offices are located throughout India by this public sector bank. You must have enough details about the bank before investing the money.

Did you know?

There are 34 nationalised banks in India. Out of the 34 banks, 12 are governments banks, and the remaining 22 are private sector banks. 

Also Read: Why is the RBI Called the Bank of Banks?

Which is the Number One Bank in India?

What are the Functions of Commercial Banks in India?

The functions of the largest commercial banks in India are classified into two main categories:

Primary functions and secondary functions.

Primary Functions

Accepting Deposits 

Customers can make savings and fixed and current deposits at commercial banks. Most customers do seek better-fixed deposit options. Based on the fixed deposit percentage, the customer does select the bank.

Savings Deposits

Customers can use savings deposits to credit money to their accounts up to a specific limit. Individuals with a fixed income choose these deposits to build savings over time.

Fixed Deposits

Fixed deposits have a set length of time they are locked in. Because the money is put for a defined period, fixed deposits are also known as time deposits. The percentage of the fixed deposit varies from bank to bank and from time to time. As per the government rules and regulations, the norms of the bank deposit keep on changing. 

Current Deposits

Account customers can deposit and withdraw money as needed with current deposits. Individuals and organisations can sometimes get overdrafts on their current accounts until one reaches a pre-determined limit.

Providing Loans

Commercial banks make money by lending money to businesses and individuals and profiting from the interest they earn. Loans are the bank's primary function, and the bank does earn from the loans they provide to the customers. There is a separate loan division in the bank, and this division offers a better service to the customer.

Credit Creation

Credit creation is a distinctive function of commercial banks. Banks construct a line of credit and transmit the loan to a firm or commercial entity all at once, rather than delivering liquid cash.

Also Read: What is SIDBI? What are the Objectives of SIDBI and SIDBI Schemes?

Secondary Functions

Discounting Bills of Exchange or Bundles 

A bill of exchange offers to pay a certain sum of money at a specified date in return for a stated amount. You can also encash more quickly if it goes via the discounting process of a commercial bank. Customers are primarily drawn to the store because of the discounts. Customers can take advantage of many programs and offers made available by the customer, providing certain benefits to the client.

Overdraft Facility

An overdraft is a loan that allows a consumer with a current account to overdraw his account up to a certain limit. It is a service that enables the depositor to withdraw more money than his account balance allows. In addition to these, banks serve as agents for their customers and receive a commission for doing so. They also offer a variety of standard utility services to their clients.

The Top 10 Largest Banks in India

Following Is a List of the Biggest Banks in India.

1. SBI (State Bank of India)

The State Bank of India, based in Mumbai, Maharashtra, is an Indian multinational public sector bank and financial services statutory entity. SBI is the world's 43rd largest bank and the only Indian bank to rank 221st on Fortune's Global 500 list of the world's largest firms for 2020. The Economic Times has named SBI as an iconic brand of India for the year 2021.

2. PNB (Punjab National Bank)

Punjab National Bank (PNB) is a state-owned bank in India. The Indian government's Ministry of Finance owns it, and its headquarters is in New Delhi. With a total gross business of ₹18,51,097 crores, PNB is the country's second-largest public sector bank.

3. HDFC Bank

HDFC Bank Limited is a Mumbai-based banking and financial services corporation. It was India's largest private sector bank by assets and the world's tenth-largest bank by market value as of April 2021. HDFC is considered one of the largest banks in India.

4. Canara Bank

Canara Bank is the country's third-largest nationalised bank. It is under the Indian government's Ministry of Finance control, and Bangalore is the company's headquarters. Ammembal Subba Rao Pai founded the bank in Mangalore in 1906, and it now has offices in London, Hong Kong, Dubai and New York. As of December 2021, Canara Bank had over 10.6 crore clients.

5. Union Bank of India

Union Bank of India is one of the largest commercial banks in India. It is an Indian government-owned bank with over 120 million customers and ₹10600 crores in assets. From April 1, 2020, Andhra Bank and Corporation Bank merged to form the Union Bank of India. Union Bank of India is the country's first significant public sector bank to use a 100% core banking solution.

6. Bank of Baroda

It is a nationalised Indian banking and financial services firm headquartered in Vadodara, India. With 132 million clients, total revenue of ₹21,800 crores, and 100 international offices, India's fourth-largest nationalised bank.

7. Axis Bank

Axis Bank Limited, formerly known as UTI Bank, is a Mumbai-based Indian banking and financial services corporation. It provides financial services to large and mid-sized corporations, small businesses and retail businesses. Axis Bank has been named Asian Bank of the Year by IFR Asia and India Bond House for the period up to 2022.

8. Bank of India

The Ministry of Finance owns the Bank of India and has its headquarters at Mumbai's Bandra, Kurla Complex.

9. ICICI Bank

ICICI Bank Limited, headquartered in Vadodara, India, is an Indian multinational bank and financial services firm. The IBS Intelligence (IBS) Global FinTech Innovation Awards, 2021, were given to ICICI Bank. In Forbes' ranking of the "World's Best Employers" for 2021, ICICI Bank was named the best employer in India in the BFSI sector.

10. Kotak Mahindra Bank

Kotak Mahindra Bank Limited is a Mumbai-based banking and financial services corporation. Personal finance, investment banking, life insurance and wealth management provide banking products and financial services to corporate and retail consumers.

Which is the Largest Private Bank in India?

HDFC Bank is the largest private bank in India, with total assets of more than ₹15 trillion as of March 2021, making it the country's largest financial institution. HDFC Bank is the second-largest bank in India when public and private sector banks are taken into account, with assets totalling more than ₹40 trillion.

The HDFC Bank was established in Mumbai, Maharashtra, in 1994 and had its headquarters there. In February 2000, HDFC Bank and Times Bank merged to form HDFC Times Bank, and HDFC Bank purchased the Centurion Bank of Punjab (CBP) in 2008.


It is important to note that the banking sector has played an important part in developing the Indian economy. The Reserve Bank of India Act 1934 and the Banking Regulation Act 1949 govern the bank's operations. It is characterised as a well-funded and well-regulated company that has effectively weathered the global economic slump. As an individual, you must know all the details about the banks before investing in them. Various banks do provide several functions.

Commercial banks perform multiple services, the most important of which are the following: receiving deposits, giving loans and advances, cash, credit, overdraft and bill discounting. Secondary functions include issuing letters of credit, the safekeeping of assets, the provision of finance, educational loans and other similar services.
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.


Q: What are the names of the four major banks in India?


Four banks have been shortlisted; two officials told Reuters on condition of anonymity since the topic has not yet been made public. The four major banks in India are the Bank of Maharashtra, Bank of India, Indian Overseas Bank and the Central Bank of India.

Q: Is SBI a larger institution than HDFC?


SBI has a market share of 25.8%t in the United States. "While HDFC Bank would retain its position as India's second-largest bank following the merger, it will be more than double the size of ICICI Bank, the country's third-largest bank," according to S&P Global Ratings. According to S&P, HDFC Bank's greater balance sheet may allow it to expand its wholesale lending options.

Q: Which bank is the number one bank in India and is one of the major banks in India?


HDFC Bank is the largest private bank in India, both in terms of assets and market capitalisation, and is the most profitable. With a market valuation of ₹11,27,600 crores, the firm ranks third among the largest publicly traded companies on the Indian stock exchanges.

Q: Which commercial bank is the largest in the world?


The Industrial and Commercial Bank of China Ltd. is the world's largest bank in terms of Assets Under Management (AUM), and it is also the most profitable. A credit card and loan company that also provides financing for enterprises and manages money services for organisations and wealthy individuals is represented by this institution.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.