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Posted on  October 9, 2024 under  by Ayush Maurya

Best Banks in India 2024: Top Choices for Savings & Service

Finding the best bank in India can be confusing. With so many banks offering different services and benefits, how do you know which one to choose? You might be looking for the best savings account, good customer support, or easy online banking—but which bank truly delivers?

In this guide, we’ll look closer at the best banks in India for 2024. We’ll help you understand what each top bank offers so you can pick the one that fits your needs. Let’s explore which banks are the top choices this year and why they could be right for you!

Top 10 Best Banks in India for 2024

Here's a quick snapshot of the top 10 Best Banks in India ranked by market capitalisation. These banks have a strong presence in the Indian banking sector and are known for their reliability, services, and financial stability.

Best Banks in IndiaTypeMarket Cap (₹ Crore)
1. HDFC BankPrivate12,59,955.97
2. ICICI BankPrivate8,72,594.41
3. State Bank of IndiaPublic 6,97,056.86
4. Kotak Mahindra BankPrivate3,59,489.87
5. Axis BankPrivate3,59,385.42
6. Bank of BarodaPublic 1,27,163.80
7. Punjab National BankPublic 1,17,630.27
8. IndusInd BankPrivate1,06,605.28
9. Indian Overseas BankPublic 1,02,129.71
10. Canara BankPublic 94,969.73
Market Cap taken on 08/10/2024

These banks represent the top choices for 2024 based on their market cap, showing their strength and influence in India's financial landscape.

Criteria for Choosing the Best Bank in India

We looked at more than just market cap to rank the best banks in India. Here are the key factors:

  1. Market Capitalization – Reflects a bank's financial strength and stability. A higher market cap often means a stronger, more trusted bank.
  2. Customer Service – Great banks prioritize customer support, offering reliable help both online and in branches.
  3. Digital Banking – Top banks have user-friendly digital tools like mobile apps and online banking for easy access anytime, anywhere.
  4. Range of Services – Banks with various services can meet diverse financial needs, from savings accounts to loans.
  5. Branch and ATM Network – A wide network ensures convenience, especially for those who prefer in-person banking.

Overview of the Best Banks in India 2024

Here’s a closer look at the top 10 best banks in India that have earned their place on this list for 2024. These banks are known for their strong market positions, innovative services, and commitment to customer satisfaction.

1. HDFC Bank -Best & Largest Bank in India

HDFC Bank is one of the best banks in India, also widely regarded as one of the largest private banks in India. With a focus on digital innovation, it offers a seamless online banking experience. HDFC Bank is committed to expanding its digital services, making banking more accessible and convenient for its customers. It excels in personal banking, loans, and credit card offerings.

  • Established: 1994
  • CEO: Sashidhar Jagdishan
  • Range of Services: Personal banking, corporate banking, loans, credit cards, and investment services
  • Customer Service: Known for prompt digital support and a user-friendly mobile app
  • Market Cap: ₹12,59,955.97 Crore
  • P/E Ratio: 18.49
  • Branches: 8735
  • CMP: ₹1652
1Y Return (%)3Y Return (%)5Y Return (%)
9.023.1434.59
Data as of 01/10/2024

2. ICICI Bank

ICICI Bank is a major player in both retail and corporate banking, with a strong presence across India. Known for its robust digital services, it has been investing heavily in technology to improve customer experience. ICICI is also exploring new financial products and expanding its loan and investment services. It’s one of the best banks for savings accounts in India, offering attractive interest rates and easy access.

  • Established: 1994
  • CEO: Sandeep Bakhshi
  • Range of Services: Retail banking, corporate banking, insurance, loans, and wealth management
  • Customer Service: Quick and efficient through both digital and branch support channels
  • Market Cap: ₹8,72,594.41 Crore
  • P/E Ratio: 19.12
  • Branches: 6524
  • CMP: ₹1258
1Y Return (%)3Y Return (%)5Y Return (%)
34.1178.96188.25
Data as of 01/10/2024

3. State Bank of India (SBI)

SBI is India’s largest public sector bank, known for its widespread branch network and reliable services. As a government-owned institution, SBI has a strong reputation and offers various products that cater to everyone, from students to senior citizens. SBI continues to enhance its digital banking capabilities to keep up with private banks.

  • Established: 1955
  • CEO: Dinesh Kumar Khara
  • Range of Services: Savings accounts, personal and business loans, corporate banking, and government schemes
  • Customer Service: Dependable with extensive branch and ATM support, especially in rural areas
  • Market Cap: ₹6,97,056.86 Crore
  • P/E Ratio: 10.36
  • Branches: 22,542
  • CMP: ₹801
1Y Return (%)3Y Return (%)5Y Return (%)
36.774.64206.51
Data as of 01/10/2024

4. Kotak Mahindra Bank

Kotak Mahindra is one of the best and fastest-growing banks in India, particularly popular for its high-interest savings accounts and digital-first approach. The bank aims to expand its digital services even further and reach more customers across India. Kotak Mahindra is a leader in investment banking and wealth management, making it a preferred choice for high-net-worth individuals.

  • Established: 1985
  • CEO: Dipak Gupta (Interim)
  • Range of Services: Savings and current accounts, loans, investment banking, and insurance
  • Customer Service: Highly rated, with quick responses via mobile and branch support
  • Market Cap: ₹3,59,489.87 Crore
  • P/E Ratio: 16.71
  • Branches: 1,604
  • CMP: ₹1,807
1Y Return (%)3Y Return (%)5Y Return (%)
5.16-6.6312.13
Data as of 01/10/2024

5. Axis Bank

Axis Bank, known for its innovative products, ranks as one of the top private banks in India. It offers a range of services from personal banking to corporate loans, with a strong focus on digital enhancements. Axis Bank is committed to growing its market share by providing specialized financial services like wealth management and corporate banking.

  • Established: 1993
  • CEO: Amitabh Chaudhry
  • Range of Services: Personal banking, corporate loans, wealth management, and credit cards
  • Customer Service: Strong digital support along with a good in-branch experience
  • Market Cap: ₹3,59,385.42 Crore
  • P/E Ratio: 13.64
  • Branches: 5377
  • CMP: ₹1178
1Y Return (%)3Y Return (%)5Y Return (%)
18.2850.6971.7
Data as of 01/10/2024

6. Bank of Baroda

As one of India’s leading public sector banks, Bank of Baroda boasts a wide reach with a strong presence in rural areas. The bank focuses on providing reliable and accessible banking services, including savings accounts, loans, and credit facilities. Bank of Baroda is also investing in technology to improve customer experience, making it a solid option for many.

  • Established: 1908
  • CEO: Sanjiv Chadha
  • Range of Services: Retail banking, loans, deposits, and international banking services
  • Customer Service: Reliable, with a focus on traditional and rural banking support
  • Market Cap: ₹1,27,163.80 Crore
  • P/E Ratio: 6.70
  • Branches: 8,266
  • CMP: ₹247
1Y Return (%)3Y Return (%)5Y Return (%)
16.77180.65171.55
Data as of 01/10/2024

7. Punjab National Bank (PNB)

Punjab National Bank has a strong customer base and offers various financial products. With a focus on affordable banking, PNB is committed to providing financial services to all segments, especially in rural areas. It continues to modernize its services to stay competitive in today’s digital age.

  • Established: 1893
  • CEO: Atul Kumar Goel
  • Range of Services: Personal and corporate banking, loans, and government schemes
  • Customer Service: Focused on affordability and accessible banking for all segments
  • Market Cap: ₹1,17,630.27 Crore
  • P/E Ratio: 10.26
  • Branches: 10769
  • CMP: ₹105
1Y Return (%)3Y Return (%)5Y Return (%)
43.03160.3279.49
Data as of 01/10/2024

8. IndusInd Bank

IndusInd Bank has a reputation for being innovative, especially in digital banking. It offers a wide range of services, from personal to corporate banking, and has a strong focus on customer satisfaction. IndusInd Bank continues to grow in the private sector, with plans to enhance its digital services and expand its reach in India.

  • Established: 1994
  • CEO: Sumant Kathpalia
  • Range of Services: Retail banking, loans, deposits, and corporate banking
  • Customer Service: Noted for personalized support and a responsive digital platform
  • Market Cap: ₹1,06,605.28 Crore
  • P/E Ratio: 11.79
  • Branches:  2,015
  • CMP: ₹1,365
1Y Return (%)3Y Return (%)5Y Return (%)
-4.4816.194.27
Data as of 01/10/2024

9. Indian Overseas Bank (IOB)

Indian Overseas Bank is known for its focus on rural banking and government schemes. It provides a variety of services tailored to the needs of smaller communities and businesses. The bank is working to improve its digital services and attract more urban customers, making it a reliable choice for basic banking needs.

  • Established: 1937
  • CEO: Ajay Kumar Srivastava
  • Range of Services: Savings accounts, agricultural loans, and business banking
  • Customer Service: Strong emphasis on rural support and accessible customer care
  • Market Cap: ₹1,02,129.71 Crore
  • P/E Ratio: 37.05
  • Branches:  3,240
  • CMP: ₹55
1Y Return (%)3Y Return (%)5Y Return (%)
27.51145.92475.1
Data as of 01/10/2024

10. Canara Bank

Canara Bank, a public sector bank, has significantly expanded its digital offerings. It provides a full range of services, including savings and corporate banking. Canara Bank aims to strengthen its position by focusing on customer service and expanding its branch network across India.

  • Established: 1906
  • CEO: K. Satyanarayana Raju
  • Range of Services: Personal banking, loans, SME services, and corporate banking
  • Customer Service: Known for its comprehensive support across urban and rural areas
  • Market Cap: ₹94,969.73 Crore
  • P/E Ratio: 6.09
  • Branches: 9,616
  • CMP: ₹105
1Y Return (%)3Y Return (%)5Y Return (%)
44.01196.84185.56
Data as of 01/10/2024
Best Banks in India 2024

Types of Banks in India

India's banking sector is diverse, with different types of banks catering to various needs. Understanding these types can help you choose the right bank for your financial goals. Here are the main types of banks in India:

1. Public Sector Banks

  • The government owns and operates these banks, holding a majority stake. They are trusted for their stability and wide reach, especially in rural areas.
  • Sub-types:
    • Nationalized Banks: Examples include the State Bank of India (SBI), Punjab National Bank (PNB), and Canara Bank.
    • Regional Rural Banks (RRBs): Focus on serving rural areas and agriculture-based sectors. Examples include Prathama Bank and Baroda Uttar Pradesh Gramin Bank.

2. Private Sector Banks

  • These banks are owned by private entities and are known for their efficient customer service and advanced digital banking facilities. They are popular in urban areas for their speed and modern offerings.

3. Foreign Banks

  • Foreign banks are international banks with branches in India. They usually cater to multinational companies and high-net-worth individuals, offering specialized services like foreign exchange and investment banking.
  • Examples: Citibank, HSBC, and Standard Chartered Bank.

4. Cooperative Banks

  • Their members own Cooperative banks and work on a cooperative model, focusing on providing affordable banking services to specific communities, such as farmers and small business owners.

5. Payments Banks

  • Payments banks are a relatively new type of bank in India, introduced to increase financial inclusion. They provide basic banking services like savings accounts and mobile payments but cannot offer loans or credit cards.
  • Examples: Airtel Payments Bank, Paytm Payments Bank, and India Post Payments Bank.

6. Small Finance Banks

  • These banks aim to provide financial services to underserved populations, including small businesses and low-income households. They offer savings accounts, loans, and other basic services, focusing on financial inclusion.
  • Examples: Ujjivan Small Finance Bank, Equitas Small Finance Bank, and AU Small Finance Bank.

Comparison of Private Banks vs. Government Banks

When choosing a bank, understanding the differences between private and government banks can help you make a better decision. Private banks are known for their modern facilities and customer service, while government banks often have a wider reach and offer stability. Here’s a quick comparison:

FeaturePrivate BanksGovernment Banks
OwnershipOwned by private entities or individualsOwned by the government (majority stake)
Customer ServiceFast, efficient, tech-drivenReliable but may be slower in rural branches
Digital BankingAdvanced, with user-friendly appsImproving, but may not match private standards
Interest RatesCompetitive but often lower for depositsGenerally offer better rates on savings
Network ReachStrong in urban areasWide reach, especially in rural areas
Loan ProcessingQuick processing, fewer formalitiesMay have more formalities, longer processing
ReliabilityStable but can vary between banksKnown for security and stability

Best Banks for Savings Accounts in India

Finding the best bank for savings accounts in India can be a game-changer, especially if you’re looking for good interest rates and flexible options. Here’s a quick list of banks that offer competitive rates for savings accounts:

Bank NameMinimum Interest Rate (% p.a.)
RBL Bank4.25%
Kotak Mahindra Bank3.5%
IndusInd Bank3.5%
IDFC FIRST Bank3%
Yes Bank3%
Axis Bank3.0%
HDFC Bank3%
ICICI Bank3%
Bank of Baroda2.75%
State Bank of India2.7%

These banks are popular for their attractive savings rates, making them great choices for growing their savings. Be sure to check with the banks for specific terms, as rates can vary.

Best Banks in India 2024

Top Banks to Open a New Account in 2024

If you're looking to open a new bank account in 2024, here are three top banks that offer easy account setup, strong digital services, and excellent benefits:

  • HDFC Bank: HDFC Bank provides a fast, digital account opening process, along with one of the best mobile banking apps in India. It’s perfect for those who want a seamless and tech-friendly banking experience.
  • ICICI Bank: Known for its efficient onboarding, ICICI Bank offers a wide range of account types and a user-friendly app, making it ideal for both individuals and businesses.
  • State Bank of India (SBI): As India’s largest public sector bank, SBI is a reliable choice with extensive branch coverage, especially in rural areas. It’s great for customers who value accessibility and nationwide reach.

These banks combine convenience, digital access, and a variety of account options to provide a hassle-free start to your banking journey.

How to Choose the Best Bank in India for You

Selecting the best bank in India depends on your specific needs and priorities. Here are some key factors to consider:

  1. Type of Bank: Decide if you prefer a private or government bank. Private banks like HDFC and ICICI are known for advanced digital services, while government banks like SBI offer wide accessibility, especially in rural areas.
  2. Customer Service: Look for a bank with a good reputation for customer support. Private banks often excel in this area, providing quick responses and helpful digital tools.
  3. Interest Rates: For savings accounts, compare interest rates among different banks. Some banks like Kotak and IndusInd offer higher rates, which can help your savings grow faster.
  4. Digital Banking: If you rely on mobile or online banking, choose a bank with strong digital offerings. Banks like HDFC and Axis Bank provide excellent mobile apps and online services that make banking more convenient.
  5. Fees and Charges: Be aware of account maintenance fees, transaction charges, and minimum balance requirements. Some banks might charge more, so it’s essential to understand these costs upfront.
  6. Branch and ATM Network: A bank with an extensive branch and ATM network is ideal for those who prefer in-person banking. SBI, for example, has a vast network across India, ensuring easy access.

Conclusion

The best bank in India for 2024 is HDFC Bank, thanks to its excellent digital services, customer support, and strong financial stability. However, the right bank for you depends on what matters most to you. If you value digital banking and quick service, HDFC and ICICI Bank are top choices. The State Bank of India (SBI) is a trusted option for extensive reach and government backing.

Kotak Mahindra is ideal for high savings interest rates, while Axis Bank offers a good balance of services and digital convenience. Each of these banks brings unique benefits, so consider your priorities to choose the bank that best meets your financial needs.

Frequently Asked Questions

1. Which is the best bank in India?

The best banks in India for 2024 are HDFC Bank, ICICI Bank, State Bank of India (SBI), Kotak Mahindra Bank, and Axis Bank. These banks are recognized for their strong financial stability, customer service, and range of banking services.

2. Which bank is best for savings accounts in India?

The top banks for savings accounts in India are Kotak Mahindra Bank, IDFC FIRST Bank, and IndusInd Bank. They offer competitive interest rates, often ranging from 4% to 6%, making them ideal for maximizing savings.

3. What’s the top government bank in India?

The State Bank of India (SBI) is the top government bank in India. Known for its vast branch network and trustworthiness, SBI offers comprehensive banking services nationwide, including in rural areas.

4. Which bank offers the best customer service in India?

HDFC Bank and ICICI Bank are considered the best for customer service in India. They provide quick responses through their mobile apps, online support, and dedicated customer care teams, ensuring a smooth banking experience.

5. Which bank is the best for rural banking in India?

The best banks for rural banking in India are State Bank of India (SBI) and regional rural banks like Baroda UP Gramin Bank. These banks have a strong rural presence and offer services tailored to agricultural and rural financial needs.

6. Are private banks better than government banks in India?

Private banks like HDFC and ICICI are better for customer service and digital features, while government banks like SBI and Bank of Baroda offer stability and broader rural access. Your choice depends on whether you value convenience or government backing.

7. Can I open a savings account online in India?

Yes, you can open a savings account online with banks like HDFC, ICICI, and Kotak Mahindra. The process is simple and requires basic documents like ID proof and address proof. Accounts can usually be activated within a day.

Disclaimer: This article is intended for educational purposes only. Please note that the data related to the mentioned companies may change over time. The securities referenced are provided as examples and should not be considered as recommendations.

Ayush Maurya

Written by Ayush Maurya

Ayush is a seasoned financial markets expert with over 3years of experience. He has a passion for breaking down complex financial concepts into simple, digestible terms. Through his 50+ articles, Ayush has helped countless individuals navigate the often intimidating world of finance.

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