Three Indian Banks Rank Among Top 25 Global Banks by Market Cap, ICICI Shines Bright
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Synopsis
In a recent report, three Indian banks - HDFC Bank, ICICI Bank, and SBI - have secured positions in the top 25 global banks by market capitalisation for Q4 2024. ICICI Bank stands out with significant growth, while HDFC Bank faces rising competition.
Key Takeaways
- Three Indian banks among top 25 globally.
- ICICI Bank shows notable market cap growth.
- HDFC Bank faces competition pressures.
- Overall market cap of top banks increased significantly.
- JPMorgan Chase remains the largest bank worldwide.
New Delhi, Jan 14 (NationPress) In the fourth quarter (Q4) of 2024, three Indian banks made their mark in the top 25 global banks by market capitalisation, with HDFC Bank, ICICI Bank, and the State Bank of India (SBI) securing the 13th, 19th, and 24th positions, respectively, as per a recent analysis.
HDFC Bank concluded Q4 2024 with a market cap of $158.5 billion, while ICICI Bank reported a market cap of $105.7 billion, and SBI recorded $82.9 billion, according to GlobalData, a prominent data analytics firm.
Indian banks displayed remarkable strength, with ICICI Bank standing out as it experienced a market cap surge of 25.8 percent to $105.7 billion, underscoring the robustness of India’s evolving digital banking and credit landscape.
In contrast, HDFC Bank saw a modest market cap rise of 1.6 percent to $158.5 billion, facing intensified competition and increasing cost challenges.
The overall market capitalisation of the top 25 global banks grew by 27.1 percent year-on-year (YoY), reaching $4.6 trillion by the end of Q4, compared to the same period in 2023.
JPMorgan Chase continues to hold the title of the world’s largest bank by market cap, reporting a jump of 37.2 percent to $674.9 billion by Q4 2024.
Goldman Sachs achieved an impressive growth of 42.9 percent, elevating it to the ninth position from 13th in the previous quarter.
Most bank stocks rose during Q4, benefiting from the US Federal Reserve's interest rate cuts, although other regional markets faced pressure due to trade tariff concerns, as noted in the report.
Murthy Grandhi, an analyst at GlobalData, indicated that the Federal Reserve implemented consecutive interest rate cuts of 25 basis points in both November and December 2024.
“However, a stock market sell-off occurred in December 2024 when the Fed lowered the anticipated number of interest rate cuts for 2025, driven by ongoing inflation worries,” added Grandhi.
The report also anticipated that tariffs expected under the administration of Donald Trump and proposed tax cuts in 2025 may counterbalance one another.
Nevertheless, challenges such as increasing sovereign debt, a stronger dollar, capital outflows from emerging markets, geopolitical tensions in West Asia, China’s economic stimulus, and the yen carry trade are pivotal elements likely to affect market performance and economic growth.
