The asset size of the country’s largest banks improved in 2021, with the State Bank of India (SBI) and HDFC Bank moving up two places in the latest S&P Global Market Intelligence ranking of Asia-Pacific’s largest banks. In addition, the third largest lender – ICICI Bank – has found a place in the ranking with the ranking of 50. The three lenders together have an asset size of $1.2 trillion, which is 2.1% of the total assets of the country. top banks in Asia.
The ranking, which was based on total assets, includes the largest government borrower SBI in 22nd position, while HDFC Bank occupies 44th place in the latest ranking. Of the top 25 lenders, only SBI and Industrial Bank Co of China have seen two jumps in the rankings.
“Banks in the Asia-Pacific face uncertainties due to the conflict between Russia and Ukraine and the divergent monetary policies in the region. The rising pace of inflation, fueled by higher commodity prices, has put pressure on the region’s central banks to follow suit with the US Federal Reserve and end ultra-accommodative monetary policy. Still, many central banks, especially in China, see the need to support their economies as they continue to feel the brunt of the Covid-19 pandemic,” said S&P Global Market Intelligence.
However, nearly half of the list is dominated by Chinese lenders, with Japan in second place with eight banks on the list. Twenty-two mainland Chinese banks made the list, with combined assets of $34.526 trillion at the end of 2021, up more than 10% from a year ago. The combined assets of all 50 banks together are $56.32 trillion. South Korea and Australia have six and four lenders in the ranking respectively.
With 20.05% compound annual growth in net income and comparable growth in deposits, HDFC Bank’s total assets grew 18.9% over the past five years to reach $267.12 billion at the end of 2021. While SBI’s total assets have grown over the past five years, ICICI Bank’s assets have grown by 11.4% over the same period.
Nevertheless, as of March 2022, Indian banks have a higher market capitalization position, with HDFC Bank ranking 7th in the Asia-Pacific region. While ICICI Bank ranks 14th on the list, SBI ranks 17th.