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HDFC Bank Surpasses SBI in CRISIL’s Corporate Banking Ranking for 2023

In 2023, HDFC Bank, India’s largest private lender, achieved a significant milestone by overtaking State Bank of India (SBI) to secure the top spot in CRISIL’s Greenwich market share Leaders in Large Corporate Banking. The report by Coalition Greenwich, a division of CRISIL, highlights the changing dynamics in India’s corporate banking landscape, with larger private and foreign banks gaining traction at the expense of smaller banks, including public sector banks.

Leadership in Large Corporate Banking:

HDFC Bank’s remarkable performance in the corporate banking sector enabled it to outshine State Bank of India (SBI) in CRISIL’s ranking. The table below illustrates the shift in market share among Indian corporates working with leading banks for overall corporate banking services from 2021 to 2022:

2021 Market Share (%) 2022 Market Share (%)
Large Indian Private Banks 33 38
Large Foreign Banks 18 21
Smaller Indian Private Banks 21 18

HDFC Bank’s Dominance in Middle Market Corporates:

HDFC Bank’s supremacy extended to middle market corporates as well, securing the top position among local banks in the 2023 Leaders ranking. Alongside ICICI Bank, it was recognized as the joint Greenwich Quality Leaders for the year.

HDFC Bank Surpasses SBI in CRISIL's Corporate Banking Ranking for 2023_40.1

Consolidation Trend Among PSUs:

The report indicates that larger public sector banks, led by SBI, are successfully maintaining corporate relationships and consolidating their positions in the market. This has resulted in smaller public sector banks losing ground to larger private and foreign banks.

Driving Growth Factors in the Banking Industry:

The banking industry experienced an overall 16% growth in revenue pools, driven primarily by factors like cash management amid a higher rates environment and substantial growth in domestic and cross-border trade. Additionally, lending for banks in India saw significant growth, influenced by the capex cycle.

Corporate Outlook and Business Optimism:

A significant finding from the Coalition Greenwich study is that nearly 90% of large and middle market Indian corporates are optimistic about their business outlook for the coming year. This positive sentiment likely contributes to their willingness to collaborate with India’s largest banks to drive expansion, internationalization, and increased efficiency.

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