What is a bank?
A bank is a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial stability of a country, banks are highly regulated in most countries.
Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, known as the Basel Accords.
We have both National and Private banks . Basically banks are classified into Scheduled and non-scheduled , where private banks also counts in .
Why do we need public sector banks in India?
The public sector banks in India were created by nationalization. State Bank of India was earlier known as The Imperial Bank. In 1969 and 1980, many private banks were nationalized.
The objective of nationalization was to extend the opportunity of banking small savings to hundreds of millions of excluded people, and to make bank loans available to farmers, artisans, craftspeople, micro- small- and medium sized businesses who only had local moneylenders to borrow from. The objective was to take banking to deep rural areas where private banks would not go because of small size of business and lack of profitability.
Let’s go through top 10 private sector banks in India.
Being ranked Number 1
We have HDFC Bank in our list
Established in 1994, Housing Development Finance Corporation Limited has its headquarters in Maharashtra.
Offers loans , Insurance , credit cards and much more facilities.
Industrial credit and Investment Corporation in India.
Ranked number 2
Established in 1994 also having its headquarters in Maharashtra.
Offers loans , Insurance and other facilities like credit cards also.
Established in 1993, this bank takes the third position. Having its headquarters also in Maharashtra. It provides services like corporate banking, providing loans and much more.
Occupies the 4th position.
Having variety of benefits like Wholsale and NRI banking and finance . It was initially know that this comany was meant for finance. It also spreads its headquarters in Maharashtra.
Occupying 5th position and laying its headquarters in Maharashtra, this bank was established in 2004. It provides much service like corporate and Investment banking, finance and much more.
Standing in 6th position in our list.
Established in 1974, and spreading headquarters in kerala, this bank provides good customer services like corporate and NRI banking, loans , Insurance and much more.
And yes ,holding the position of 7.
Headquartered in Mumbai, Indusland is among the largest private sector banks.
To meet your personal needs, it offers a wide range of personal banking services including deposits, loans, cards, insurance etc. It offers much customer friendly services .
Established in 1943, RBL Bank started its transformational journey. Now we have this bank in 8th position .
Corporate and Institutional Banking, Commercial Banking, Branch and Business Banking and much more.
This bank , presently is in the 9th position .
KARUR VYSYA Bank is one the leading bank in private sector with headquartered in Karur (Tamil Nadu). Being founded in 1916 , it provides many customer services like loans, finance and much more.
Bandhan Bank Limited was incorporated on 23 2014 . Being the last one in the lost, is also one of the top most private banks and holds many responsibilities like other banks.