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.
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 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.
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.
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.
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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