The Indian banking sector continues to serve as the financial backbone of the national economy, facilitating credit flow, capital formation, and inclusive growth. It plays a central role in supporting businesses, infrastructure development, and household consumption. The sector’s evolution—driven by regulatory reforms, digital transformation, and deeper collaboration with NBFCs and FinTechs—has strengthened its position as a key catalyst in India’s journey toward becoming a $5 trillion economy.
We, DART Analysts, based on data up to 2022, observed that the Indian banking sector recorded an overall Compound Annual Growth Rate (CAGR) of 9.9%, with projections of 10.4% CAGR for the period 2023–2027. However, the updated analysis reveals that the sector has reported higher CAGR of 14.4% by 2025, mostly influenced by the performance of HDFC Bank which turned out be an aggressive marketer in the sector. Other Banks, performed in the band of 11- 14% which is higher than our projection. Over, improved performance reflects asset quality, higher profitability, and sustained credit growth, underpinned by digital adoption, robust retail lending, and a resurgence in deposit mobilization. Here is a quick overview of key players in the industry.
*Companies ranked based on FY2025 Revenue (highest – lowest)
This upward trend highlights the sector’s post-pandemic resilience, driven by strong credit expansion, healthier balance sheets, improved NPA ratios, and enhanced capital adequacy. Partnerships between banks, NBFCs, and FinTech firms have further expanded financial inclusion, while technology-led innovations have improved efficiency and service delivery.
Looking forward, the Indian banking industry is projected to maintain this growth momentum, growing at a CAGR of around 12.4% between 2026 – 2029, supported by technology-driven lending, green financing initiatives, and regulatory stability in addition to improved asset quality in the Banking sector. This trajectory signifies the sector’s shift from cyclical recovery to sustained, structural growth, reaffirming its pivotal role in driving India’s long-term economic and social progress.
Here is the detailed analysis of the Key Players in the Banking Sector in India:
HDFC Bank Ltd
HDFC Bank Ltd (HDFC) offers personal and corporate banking, private and investment banking, and other related financial solutions to individuals, MSMEs, government, and agriculture sectors, financial institutions and trusts, and non-resident Indians. It provides a range of deposit services and card products; loans for homes, cars, commercial vehicles, and other personal and business needs; insurance for life, health, and non-life risks; and investment solutions such as mutual funds, bonds, equities, and derivatives. HDFC also provides services such as cash management, corporate finance advisory, customized banking solutions, project and structured finance, trade financing, foreign exchange, internet banking, and payment and settlement services, among others. The bank operates in India through a network of branches, ATMs, phone banking, net banking, and mobile banking. It has overseas branches in Bahrain, Hong Kong, and the UAE, and representative offices in the UAE and Kenya. HDFC is headquartered in Mumbai, Maharashtra, India.
ICICI Bank Ltd
ICICI Bank Ltd (ICICI Bank) provides personal and corporate banking, investment banking, private banking, venture capital, life and non-life insurance solutions, securities broking, and asset management services to corporate and retail clients, high-net-worth individuals, and SMEs. It offers a wide range of products such as deposits accounts including savings and current accounts, and resident foreign currency accounts; investment products; and consumer and commercial cards. ICICI Bank offers to lend for home purchase, commercial business requirements, automobiles, personal needs, and agricultural needs. The bank offers services such as foreign exchange, remittance, import and export financing, advisory, trade services, personal finance management, cash management, and wealth management. It has an operational presence in Europe, Middle East, and Africa (EMEA), the Americas, and Asia. ICICI Bank is headquartered in Mumbai, Maharashtra, India.
State Bank of India
State Bank of India (SBI) is a universal bank. It provides a range of retail banking, corporate banking, and treasury services. The bank serves individuals, corporates, and institutional clients. Its major offerings include deposits services, personal and business banking cards, and loans and financing. The bank provides services such as mobile banking, internet banking, ATM services, foreign inward remittance, safe deposit locker, money transfer, mobile wallet, trade finance, merchant banking, project export finance, treasury, offshore banking, and cash management services. It operates in Asia, the Middle East, Europe, Africa, and North and South America. SBI is headquartered in Mumbai, Maharashtra, India.
Punjab National Bank
Punjab National Bank (PNB) offers retail and commercial banking, agricultural and international banking, and other financial services. Its retail and commercial banking portfolio offers credit and debit cards, corporate and retail loans, deposit services, cash management, and trade finance. Its international banking portfolio includes foreign currency accounts, money transfers, letters of guarantee, and world travel cards, and solutions to non-resident Indians. PNB also offers merchant banking, mutual funds, depository services, insurance, and e-services. The bank operates in India and has overseas operations in the UK, Bhutan, Myanmar, Bangladesh, Nepal, and the UAE. PNB is headquartered in New Delhi, India.
Bank of Baroda
Bank of Baroda (BOB) offers retail, agriculture, private and commercial banking, and other related financial solutions. It includes loans, deposit services, and payment cards. The bank offers loans for homes, vehicles, education, agriculture, personal and corporate requirements, mortgage, securities, and rent receivables, among others. It provides current and savings accounts; fixed and recurring deposits; debit, credit, and prepaid cards. The bank also provides insurance coverage for life, health, and general purposes. It offers services such as treasury, financing, mutual funds, cash management, international banking, digital banking, internet banking, start-Up banking, and wealth management. The bank has operations in Asia-Pacific, Europe, North America, and the Middle East and Africa. BOB is headquartered in Baroda, Gujarat, India.
Industry Performance
The health of the banking system in India has shown steady improvement, according to the Reserve Bank of India’s latest report on trends in the sector. From capital adequacy ratio to profitability metrics to bad loans, both public and private sector banks have shown visible improvement. And as credit growth has also witnessed an acceleration in 2021-22, banks have seen an expansion in their balance sheet at a pace that is a multi-year high. As of August 8, 2025, total banking credit stood at ₹186.06 lakh crore (US$ 2,121.7 billion). As of August 22, 2025, credit to non-food industries was ₹166.6 lakh crore (US$ 1,908.1 billion).
Given the increasing intensity, spread, and duration of the pandemic, economic recovery the performances of key companies in the industry were positive. The reported margin of the industry by analyzing the key players was around 16.8% by taking into consideration the last 3 years’ data. Details are as follows.
| Companies | Net Margin | EBITDA/Sales |
| HDFC Bank Ltd. | 19.5% | 25.6% |
| State Bank of India | 13.5% | 18.2% |
| ICICI Bank Ltd. | 24.6% | 32.7% |
| Bank of Baroda | 14.2% | 19.2% |
| Punjab National Bank | 12.0% | 18.2% |
| Industry Margins | 16.8% | 22.8% |
*Companies ranked based on FY2025 Revenue (highest – lowest)
Industry Trends
India’s banking sector in 2025 demonstrates resilience and steady progress, characterized by improving asset quality, robust profitability, and accelerating digital transformation, according to official government data and market intelligence reports. The sector’s health reflects strong macroeconomic fundamentals and effective regulatory interventions by the Reserve Bank of India.
- Profitability and asset quality: Banks posted record earnings with SCBs’ RoA at 1.4% (annualized) and RoE at 14.1% by Sep 2024, while PSBs and RRBs also reported multi‑year high profits supported by prior recapitalization and operational gains. GNPA fell to 2.5% and NNPA to 0.6% by Sep 2024 with provision coverage around 77%, marking the strongest balance‑sheet quality in over a decade.
- Credit growth and regulation: Credit growth moderated to 11.8% YoY by Nov 2024 with deposits at 11.1%, reflecting monetary transmission and tighter risk weights on unsecured retail and NBFC exposures issued by RBI in Nov 2023. Market forecasts expect credit growth of 10.8–11.5% in FY2025 and 10.4–11.2% in FY2026 as liquidity normalizes and regulatory recalibration supports lending.
- Digital and inclusion momentum: Digital payments hit 16,544 crore transactions valued at ₹2,727 lakh crore in 2024, with UPI contributing ~81% of volumes and rapid expansion of acceptance infrastructure nationwide. Financial Inclusion Index rose to 64.2 by Mar 2024, while PMJDY accounts reached 54.5 crore with ₹2.44 lakh crore deposits, deepening access via DBUs and Business Correspondent networks.
| Companies | CAGR |
| State Bank of India | 12.4% |
| HDFC Bank Ltd. | 21.54% |
| ICICI Bank Ltd. | 14.1% |
| Bank of Baroda | 11.5% |
| Punjab National Bank | 12.4% |
| Average Industry CAGR of Top Players | 14.4% |
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