Indian banks are making their presence felt globally, with HDFC Bank, ICICI Bank, and the State Bank of India (SBI) securing prominent positions in the top 25 global banks by market capitalisation as of the fourth quarter (Q4) of 2024. This accomplishment highlights the resilience and strength of India’s banking sector amidst global economic challenges.
HDFC Bank ranked 13th with a market cap of $158.5 billion, while ICICI Bank stood at 19th with $105.7 billion. SBI rounded off the list at 24th, boasting a market capitalisation of $82.9 billion, as per a report by GlobalData, a leading analytics and research company.
HDFC, ICICI and SBI: Leaders in Indian Banking
HDFC Bank, India’s largest private-sector bank, maintained its position as a global leader with a market cap increase of 1.6%, reaching $158.5 billion. Despite rising competition and operational cost pressures, the bank's steady growth reflects its robust performance in the domestic market.
ICICI Bank emerged as a star performer, witnessing an impressive 25.8% growth in its market capitalisation. This surge, bringing its total to $105.7 billion, underscores the strength of India's expanding digital banking infrastructure and the growing credit ecosystem.
SBI, India’s largest public-sector bank, secured the 24th position globally, with a market cap of $82.9 billion. Its performance demonstrates the resilience of the state-owned banking sector in adapting to global economic challenges.
Global Banking Market Trends
The overall market capitalisation of the top 25 global banks grew by 27.1% year-on-year, reaching an impressive $4.6 trillion by Q4 2024. Leading the pack, JPMorgan Chase retained its position as the world’s largest bank, with its market cap soaring 37.2% to $674.9 billion.
Goldman Sachs recorded stellar growth, with a 42.9% increase in market capitalisation, climbing from the 13th to the 9th spot in just one quarter. These gains were driven primarily by the US Federal Reserve's consecutive interest rate cuts of 25 basis points in November and December 2024, which boosted market sentiment.
Challenges Ahead for Global Markets
While many global banking stocks saw gains, concerns remain over trade tariffs, inflation, and geopolitical tensions. The Federal Reserve's decision in December 2024 to reduce the projected number of interest rate cuts for 2025 led to a stock market sell-off. Additional factors, including rising sovereign debt, a stronger dollar, and foreign outflows from emerging markets, may pose challenges in the coming year.
Indian banks, however, continue to stand tall, showcasing their ability to navigate these uncertainties while reinforcing their position on the global stage. With HDFC Bank, ICICI Bank, and SBI among the top 25 global banks by market cap, India’s banking sector is poised for further growth and recognition.