The Best Banks in India – Full List

Mani Karthik

Entrepreneur. Mentor. Blogger

In my pursuit of getting better & smarter in life,
I share everything I learn, on this blog, so you can make use of it.

India has a large number of banks, which can be overwhelming for anyone trying to decide where to put their money. To help you out, we’ve compiled a list of the biggest banks in India. This list includes both public and private sector banks, so you can make the best decision for your needs.

The banking sector in India has seen a lot of progress in recent years. There have been various initiatives taken by the government to improve the banking sector in India. Some of these initiatives are:

  1. The setting up of the Banking Board Bureau (BBB)
  2. The launch of the Pradhan Mantri Jan Dhan Yojana (PMJDY)
  3. The setting up of Bad Banks
  4. The recapitalization of public sector banks
  5. The introduction of the insolvency and bankruptcy code

All these initiatives have helped in improving the banking sector in India.

The BBB has helped in professionalizing the banking sector. The PMJDY has helped in increasing financial inclusion. The bad banks have helped in resolving the issue of non-performing assets.

The recapitalization of public sector banks has helped in providing them with the required capital. The insolvency and bankruptcy code has helped in dealing with the issue of stressed assets.

The Indian banking system consists of 21 private sector banks, 27 public sector banks, 49 foreign banks, 56 regional rural banks, 1,562 urban cooperative banks, and 94,384 rural cooperative banks, in addition to cooperative credit institutions as of October 2018, according to India Brand Equity Foundation (IBEF).

In the coming years, India’s banking services sector is likely to grow at a rapid pace, driven by strong economic growth and rising demand for banking services from both individuals and businesses.

The number of banks and branches is expected to increase significantly, as more foreign banks enter the market and existing banks expand their operations.

The range of products and services offered is also likely to increase, as banks compete to offer the most competitive products and services. In addition, technology is expected to play a major role in the sector, with more banks adopting online and mobile banking services to meet the needs of their customers.

Facilities, Features, Benefits of a Good Bank

There are many factors customers consider when deciding whether a bank is good or not. Here are some of the practical considerations of the modern consumer:

  • A great reputation for withstanding economic downturns
  • Easily accessible brick-and-mortar branches
  • No/low minimum balance requirements
  • An extensive network of ATMs
  • Great customer service
  • Free bill payment
  • Smooth online banking
  • Competitive rate of interest
  • Free checks
  • Availability of credit and loans

Based on these features I have created a list of the largest banks in the country that offer all or most of the conveniences and facilities mentioned above.

10 Bet Private Banks in India

A private bank is a bank that is not owned by the government. In India, private banks are not allowed to offer certain services, such as credit to small businesses and farmers, that state-owned banks are required to offer.

Private banks are different from public banks in a few key ways.

Private banks are usually for-profit entities, while public banks are typically not-for-profit entities.

This means that private banks may be more interested in making money for shareholders than in providing services to the public.

Additionally, private banks are usually not subject to the same level of regulation as public banks.

This can mean that they have more freedom to set their own policies and procedures, which may not always be in the best interest of customers or the general public.

1. HDFC Bank

HDFC bank is one of the best private banks in India because it offers a wide range of products and services to its customers. The bank has a large network of branches and ATMs across the country and offers 24/7 customer service. HDFC bank also offers a mobile app and online banking services. The bank has a strong focus on customer service and offers attractive interest rates on deposits.

Best_Bank_India_HDFC

Pros:

1. HDFC Bank has a large network of branches and ATMs across India, making it convenient for customers.

2. The bank offers a wide range of products and services, including loans, credit cards, and investment products.

3. HDFC Bank has a strong online presence and offers a good mobile banking experience.

4. The bank has been consistently rated as one of the best performing banks in India.

Cons:

1. HDFC Bank has high fees and charges for some products and services.

2. The bank has been known to change its policies and procedures frequently, which can be frustrating for customers.

3. HDFC Bank’s customer service has been known to be poor at times.

4. The bank has been involved in a number of controversies, including allegations of money laundering and fraud.

2. ICICI Bank

ICICI bank is one of the best private banks in India because it has a strong focus on customer service, innovative products, and technology. Additionally, ICICI bank has a large network of branches and ATMs across India, which makes it convenient for customers. Additionally, ICICI bank offers a wide range of financial services, including loans, credit cards, and insurance products.

There are a few reasons why HDFC bank is considered better than ICICI bank. Firstly, HDFC has a more widespread network of branches and ATM’s than ICICI, making it more accessible for customers. Secondly, HDFC offers a wider range of products and services than ICICI, including investment banking and insurance products. Finally, HDFC has a better reputation for customer service than ICICI.

Pros:

1. ICICI bank has a strong presence in India with a wide network of branches and ATMs.

2. The bank offers a wide range of financial products and services to its customers.

3. ICICI bank has a strong online presence and offers a wide range of digital banking services.

4. The bank has a strong focus on customer service and offers 24/7 customer support.

5. ICICI bank has a strong brand equity and is one of the most trusted banks in India.

Cons:

1. ICICI bank has high interest rates on some of its products and services.

2. The bank has been involved in some controversies in the past which has dented its image.

3. ICICI bank has been slow in adopting new technology and has lagged behind its competitors in this aspect.

4. The bank has been accused of poor customer service in the past.

5. ICICI bank has a high rate of non-performing assets.

3. Axis Bank

Best_Bank_India_AXIS

There are many reasons why Axis bank is a good private bank in India. Here are some of the reasons:

-Axis bank has a wide network of branches and ATMs across India.

-Axis bank offers a wide range of products and services.

-Axis bank has a strong focus on customer service.

-Axis bank has a strong focus on technology and innovation.

-Axis bank has a strong focus on risk management.

-Axis bank has a strong corporate governance structure.

Pros:

1. Wide range of products and services:

Axis Bank offers a wide range of products and services, from savings and current accounts to loans and investment products. This makes it a one-stop shop for all your banking needs.

2. Convenient banking channels:

Axis Bank provides multiple banking channels for its customersโ€™ convenience, including online, mobile, and branch banking.

3. Good interest rates:

Axis Bank offers competitive interest rates on its products, making it a good option for those looking to maximize their earnings.

4. Strong customer service:

Axis Bank has a strong customer service team that is always ready to help with any enquiries or problems you may have.

Cons:

1. Limited international presence:

Axis Bank has a limited international presence compared to some of its competitors, which may be inconvenient for customers who frequently travel or do business.

2. Low interest rates on savings accounts:

Axis Bank offers relatively low interest rates on its savings accounts, which may not be ideal for those looking to grow their money.

4. Kotak Mahindra Bank

Kotak Mahindra Bank is a good private bank in India because it offers a wide range of banking products and services to its customers.

The bank has a strong network of branches and ATMs across the country. It also offers mobile and online banking services to its customers. Kotak Mahindra Bank has a very good customer service record and is known for its prompt and efficient service.

The bank is also one of the few banks in India which offer 24-hour customer service.

Pros:

1. Kotak Mahindra Bank offers a wide range of banking and financial products and services to its customers.

2. The bank has a large network of branches and ATMs across India.

3. Kotak Mahindra Bank provides good customer service.

4. The bank has a strong online presence and offers a good mobile banking experience.

5. Kotak Mahindra Bank is a safe and secure place to keep your money.

Cons:

1. Kotak Mahindra Bank charges high fees for some of its products and services.

2. The bank has been involved in some controversies in the past.

3. Some customers have complained about the quality of customer service.

4. Kotak Mahindra Bankโ€™s online and mobile banking platforms are not very user-friendly.

5. The bank has a limited presence in rural areas.

5. IndusInd Bank

IndusInd Bank is a good private bank in India for a number of reasons:

1. It has a strong presence in rural and semi-urban areas, which other private banks often overlook.

2. It has a large network of branches and ATMs, making it convenient for customers.

3. The bank offers a wide range of products and services, including savings accounts, loans, and credit cards.

4. IndusInd Bank is known for its excellent customer service.

5. The bank has been consistently ranked among the top private banks in India by various surveys and rating agencies.

Pros:

1. IndusInd bank offers a wide range of banking products and services that cater to the needs of both retail and corporate customers.

2. The bank has a strong presence in India with a large network of branches and ATMs.

3. IndusInd bank has been awarded the ‘Best New Bank’ award by The Asian Banker magazine.

4. The bank’s website and mobile banking app are user-friendly and offer a great experience.

5. IndusInd bank offers attractive interest rates on deposits.

Cons:

1. The bank has been involved in a few controversies in the past, which might impact its reputation.

2. IndusInd bank has a relatively high number of non-performing assets (NPAs) when compared to other banks.

3. The bank’s financial performance has been impacted in recent years due to the high NPAs.

4. IndusInd bank has been charging its customers for certain services which were earlier free of cost.

5. The bank has been gradually increasing its fees and charges, which is not liked by many customers.

6. Yes Bank

Yes Bank is a good private bank in India because it offers a wide range of banking products and services to its customers. It also has a strong focus on customer service and offers a number of value-added services to its customers. Moreover, the bank has a strong network of branches and ATMs across the country.

Pros:

1. Yes Bank has a strong focus on digital banking and offers a good mobile app experience.

2. It has a wide range of products and services to cater to different needs.

3. Yes Bank is one of the few banks in India to offer a comprehensive rewards program.

4. The customer service is generally good and the bank has a large network of branches and ATMs.

Cons:

1. Yes Bank has been hit by a number of scams in recent years, which has tarnished its image.

2. It has been accused of aggressive lending practices, which has led to a high number of non-performing assets.

3. The bank has also been embroiled in a number of controversies, including allegations of political favoritism.

4. Yes Bank has been struggling to raise capital in recent years, which has constrained its ability to expand its business.

7. Federal Bank

There are many reasons why Federal Bank is a good private bank in India.

First, the bank has a long history dating back to 1931, making it one of the oldest banks in the country.

Second, it has a large network of over 1,200 branches and over 4,000 ATMs, making it convenient for customers to access banking services.

Third, the bank offers a wide range of products and services, including savings and checking accounts, loans, credit cards, and investment services. Finally, the bank has a strong reputation for providing excellent customer service.

Pros:

1. Federal bank offers a wide range of products and services, including personal and business banking, loans, credit cards, and investment products.

2. The bank has a strong online presence and offers convenient online and mobile banking services.

3. Federal bank has a large network of branches and ATMs across the country.

4. The bank offers competitive interest rates on deposits and loans.

5. Federal bank provides good customer service and 24/7 telephone banking support.

Cons:

1. Federal bank has high fees for some products and services, such as foreign currency exchange and wire transfers.

2. The bank’s online and mobile banking services are not available in all countries.

3. Federal bank’s customer service is not available 24/7.

4. Some customers have complained about the quality of the bank’s customer service.

8. Bandhan Bank

There are a few reasons why Bandhan Bank is unique and why it is a good bank. Firstly, the bank has a very strong focus on microfinance and rural banking, which sets it apart from other banks in India. This focus means that the bank has a very good understanding of the needs of its target customer base, and is able to provide products and services that are tailored to them. This also allows the bank to offer very competitive rates and terms.

Secondly, Bandhan Bank has a very good track record in terms of financial performance. The bank has been profitable every year since it was founded, and has consistently grown its loan book and deposits. This strong financial performance gives depositors and investors confidence in the bank, and makes it more likely that the bank will be able to continue to grow and succeed in the future.

Finally, Bandhan Bank has a very good reputation in terms of customer service. The bank has won multiple awards for its customer service, and customers consistently rate the bank highly in surveys. This high level of customer satisfaction is due in part to the fact that the bank has a very large network of branches and ATMs, which makes it easy for customers to access their accounts and get help when they need it.

Pros:

1. Bandhan Bank is a relatively new bank, which means that it is still growing and expanding its operations. This can be seen as a positive point, as the bank has ample room to grow in the future.

2. Bandhan Bank has a strong focus on rural and semi-urban areas. This focus means that the bank is able to offer financial services to a large number of people who would otherwise be excluded from the formal banking system.

3. The bank has a very strong social focus and works with a number of NGOs and other organizations to promote financial inclusion.

4. Bandhan Bank has a very good reputation and has been recognized by a number of prestigious organizations for its work in promoting financial inclusion.

Cons:

1. As Bandhan Bank is a relatively new bank, it does not have the same level of experience or expertise as some of the older, more established banks in India.

2. Bandhan Bank is focused on rural and semi-urban areas, which means that its branches and ATMs are not as widespread as some of the other banks in India.

3. The social focus of the bank means that it does not have the same profit motive as some of the other banks in India, which could impact its long-term viability.

9. South Indian Bank

Some of South Indian Bank’s unique features include its strong focus on customer service, its extensive branch network, and its use of technology to provide a convenient banking experience for its customers. These factors, combined with the bank’s competitive interest rates and fees, make it a good choice for those looking for a comprehensive banking solution.

Pros:

1. Wide network of branches and ATMs: South Indian Bank has a wide network of branches and ATMs, which makes it convenient for customers to access banking services.

2. Competitive interest rates: South Indian Bank offers competitive interest rates on deposits and loans, which makes it an attractive option for customers.

3. Good customer service: South Indian Bank is known for its good customer service, which makes it a preferred choice for many customers.

4. Safe and secure: South Indian Bank is a safe and secure bank, which makes customers feel confident about their money.

5. Diverse product range: South Indian Bank offers a diverse range of products and services, which cater to the needs of different customers.

Cons:

1. Limited international presence: South Indian Bank has a limited international presence, which might be a disadvantage for customers who require international banking services.

2. Lack of online banking services: South Indian Bank does not offer online banking services, which might be an inconvenience for customers who prefer to bank online.

3. Fewer ATMs in rural areas: South Indian Bank has fewer ATMs in rural areas, which might be a problem for customers who live in such areas.

10. DCB Bank

DCB Bank’s unique features include its focus on customer service, its wide range of products and services, and its commitment to responsible banking. These features make DCB Bank a good choice for customers who want a bank that is focused on them and their needs.

Interest Rates in Indian Banks (High to Low)

BankInterest Rate
Indus Ind Bank4.00%
Yes Bank4.00%
Kotak Bank3.50%
DBS Digi Bank3.00%
HDFC Bank3.00%
ICICI Bank3.00%
Axis Bank3.00%
IDFC Bank2.90%
Indian Bank2.90%
Federal Bank2.90%
Stan Chart Bank2.75%
SBI2.70%
South Indian Bank2.50%
  • Interest rates mentioned above are for regular savings accounts with funds less than 5 Lakhs INR.

Opening a bank account – Things to keep in mind

There are several things to look for when opening a bank account in India.

First, you should make sure that the bank is regulated by the Reserve Bank of India (RBI).

Second, you should check to see if the bank is a member of the Banking Codes and Standards Board of India (BCSBI).

Third, you should ask about the bank’s interest rates and fees.

Fourth, you should inquire about the bank’s customer service policies.

Fifth, you should find out if the bank offers online banking.

Sixth, you should ask about the bank’s ATM network.

Finally, you should check to see if the bank has any branches in your city or town.

How to open your first bank account

Assuming you are a resident of India, here are a few tips to help you open your first bank account:

  • Research which bank or credit union is right for you.
    Consider things like whether you want a traditional bank or an online bank, what kinds of fees you’re willing to pay, and what kind of customer service you’re looking for.
  • Gather the required documents.
    When you open a bank account in India, you’ll need to provide proof of your identity, proof of your address, and proof of your income.
  • Call and check.
    Call the bank or credit union to confirm that you’re eligible for an account and to schedule an appointment.
  • Bring the required documents to the appointment.
    Make copies of your identification, income documentation, and address documentation.
  • Deposit money into your account.
    Once you’ve opened your bank account, you can start depositing money into it.
    You can do this by withdrawing cash from an ATM or by transferring money from your checking or savings account to your new bank account.
  • Transfer money between accounts.
    You can also use your bank account to transfer money between different accounts.
    For example, you can use your bank account to pay your bills, buy groceries, and make other expenses.

14 thoughts on “The Best Banks in India – Full List”

  1. I’m a business in the UK and am keen to trade with my small supplier in Rajesthan. I need to be able to pay him to a bank account. He went to set one up and was told he needed a miimum balance of $500 to open the account. This is way more money than her has. Do all indian banks have this restrictive limit? Its a real barrier to trade for the little guys. Any advice you have is welcome. I am not allowed to send via Western Union anymore as i am a Ltd company in the UK now.

  2. It’s unfair to make generic recommendations but from my experience, I might prefer HDFC or IDFC. Not saying that there are no risks. There are but realizing it all, I think I’ll consider these two.

  3. Hi Karthik, Firstly really nice stuff you’ve got going here. I had accidentally stumbled upon this post while searching for an Indian bank with good support for seamless international transactions.

    Can you please comment on that aspect as well? And possibly suggest which would be a better one for that amongst the ones you had shortlisted already?

  4. in these times, the financial stability of the bank has to be noted. Just service and products is not sufficient, money has to be safe

  5. IMHO, IDFC first bank is by far the best when it comes to retail banking. the mobile app and internet banking platforms are the best. Great customer service and the branches are always wiling to help with a big smile.. Nice branches too. i am told that they are coming up with new products, creadit cards etc within the next 6 months..
    I have a current account with UCO bank (still primitive in its approach). Absolutely hopeless bank but we’ve been banking with them for the past 30 years, and my folks are not ready to move on and change the service provider. HDFC again is just satisfactory, whilst the internet banking platform is good, there is a huge scope for improvement. the regalia credit card is great..Indus Ind and RBL are both good banks too..But all in all, my vote goes to IDFC First Bank.

  6. I did see a common thing is that all are typically against SBI. So just wanna talk about it. I won accounts in SBI and in a pvt bank and another PSU bank. So i think I can say a few things. Just think the type of customers SBI caters ad the other pvt sector bank caters. in Pvt banks, u need to maintain a minimum of Rs.10000 to open an account and in SBI earlier it was just Rs.500. So wonder where the crowd wud go? In addition to the thousands of pension account each branch has. Just sit for a half an hour in SBI and any pvt bank and see the work pressure the employees go thru. I know being in the customer service field u wud expect the other person to always have a smile but sometimes dealing with large number of ppl, the smile does get reduced. How many banks does allow visually impaired ppl to work for them? I have myself seen two branches where visually impaired ppl work and trust me they are doing a spectacular job. But do notice that things are changing and new ppl are joining in and i see the vast difference in the services of SBI from then to now in a positive way. And u know I really dont even know the last time when I visited the bank as all the things are taken care online too. Wanted to say many more things but just avoiding it bcoz of space crunch.

  7. Hi Mani,
    You also have classified by Aaa,Baa, etc ratings.This classification could be more credible.

  8. So why did you rank the bank among the “best”??? You mean crappy customer service is to be expected??? Maybe I should put my money in gold/silver instead!

  9. Good to know, however SBI should not be any place in this list. (Please correct it under SBI ‘Bad things about HDFC bank’ to ‘Bad things about SBI bank’)

  10. Wouldn’t it be good to consider the charges levied on account holders too while making such a list? I do know that charges are revised frequently. But lately some banks in the list have been notorious for their charges

  11. How could you place SBI at the top of the list? It is literally i step away from being a organised financial fraud scheme.

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