Top 10 PSU Banks in India in 2024

We look at three sets of data to determine which are the top ten public banks in India, partially shedding light on the importance of a customer-centric approach.
April 4, 2024

The evolution of banking in India is an illustrious chapter in the country’s economic narrative. Closely knit with the aspirations of the Indian masses, it reflects the changing dynamics of the pre-independence period. After 341 years, the necessities for banking and the role it plays is unavoidably multifaceted.

As per a report, India has 12 public sector banks, 22 private sector banks, 44 foreign banks, 43 regional banks, 1484 urban cooperative banks and 96,000 rural cooperative banks. Yet, certain banks have the edge on the popularity factor, mostly through their innovative customer acquisition and retention techniques or people’s unwavering trust in them (or both).  

In this article, we have compiled a list of the top ten public sector banks (aka public sector undertaking banks, aka government-owned banks) on three parameters. Firstly, it is based on the market capitalization which, in simple words, would show us the size of the company. Secondly, we ranked it based on the number of branches and ATMs and Cash Recycling Machines (CRMs). This shows us the strength of their network. And finally, we ranked it based on the number of active customers on their mobile and internet banking channels illustrating their digital prowess. Let’s begin.

Top 10 PSU Banks as per their Market Capitalization 

State Bank of India holds the number one position in this list with a market cap of Rs. 5,00,179.88 crore. It is not surprising given the dominance it has in the banking world. As per an official announcement on 22 February 2024, they now serve over 50 crore customers. This is largely because they have a wide network of branches and customer service points across the country making it extremely easy for people to bank with them. SBI is followed by Bank of Baroda and is subsequently followed by other banks which are buckling up their operations with added focus on reaching customers through improved customer experience, attractive offers and partnership with other customer-centric products and services.

Top 10 PSU Banks as per the number of Branches and ATMs(& CRMs)

Once again the number one position is held by State Bank of India with their vast network of 22,406 branches. However, it is Punjab National Bank that holds the second position with 10,066 branches. Canara Bank claims the third position, followed by Union Bank of India and Bank of Baroda. Interestingly, although Bank of Baroda has a lesser number of branches, they have been able to surpass those preceding it in this list to secure the second position in the market capitalization list.

When it comes to ATMs and CRMs, State Bank of India tops the list and the two ranks below are pretty much similar to the branch list. However, Bank of Baroda overtakes Union Bank of India to secure the fourth position, unlike the branch list. Same alterations can be observed between Bank of India and Indian Bank, and Indian Overseas Bank and Central Bank of India. UCO Bank holds the 10th position in both the lists.

Top 10 PSU banks based on the number of active customers using mobile and internet banking

The verdict is in and the rankings, except for the first position, are surprising. While in terms of mobile banking, Indian bank is ranked at number 5, when it comes to using internet banking, Indian bank has over 12 lakh customers. The list has a new entrant, Bank of Maharashtra, which has managed a position within the top 10 PSU banks in this list showing that it has well adapted to the digital banking requirements and is making efforts to increase digital penetration.

In conclusion, State Bank of India with its expansive network has claimed the first position in all the parameters we have taken into consideration in this article. The second position is held by Bank of Baroda based on Market cap, Punjab National Bank in terms of number of branches and ATMs (& CRMs), Union Bank of India for the number of active customers using mobile banking and Indian Bank in terms of active customers using internet banking.

The third positions are held by Punjab National Bank for Market cap, Canara Bank for number of branches and ATMs (& CRMs), Bank of Baroda for the number of active mobile banking customers and Punjab National Bank when it comes to the number of active internet banking-using customers.

Generally, such trends are indicative of the trust people have in banking institutions, and in this case, public banks. With the right mix of personalisation, enhanced customer satisfaction and data-driven decisions, every bank can be at par with what customers expect from them. Such actions can mean only one thing for the banks: growth at scale.

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