The assets size of the country’s top banks has improved in 2021 with State Bank of India (SBI) and HDFC Bank climbing up two notches in the latest S&P Global Market Intelligence’s ranking of the Asia-Pacific’s largest banks. What’s more, the third-largest lender – ICICI Bank — has found a place in the league table with the rank of 50. The three lenders together have an asset size of $1.2 trillion, which is 2.1% of the aggregate assets of the top banks in Asia.
The ranking, which was based on the total assets, features the largest state lender SBI in 22nd position, whereas HDFC Bank occupied the 44th slot in the latest ranking. Among the top 25 lenders, only SBI and Industrial Bank Co of China have seen two notches jump in the ranking.
“Banks in the Asia-Pacific face uncertainties from the Russia-Ukraine conflict and divergent monetary policies in the region. The rising pace of inflation, fueled by higher commodity prices, has pressured the region’s central banks to follow the US Federal Reserve and end ultra-loose monetary policies. Still, many central banks, especially in China, see the need to support their economies as they continue to face the drag from the Covid-19 pandemic,” observed S&P Global Market Intelligence.
However, nearly half of the list is dominated by Chinese lenders whereas Japan comes second with eight banks featuring in the list. Twenty-two mainland Chinese banks made it to the list, holding combined assets of $34.526 trillion at end of 2021, rising more than 10% from a year ago. The combined assets of all 50 banks together stand at $56.32 trillion. South Korea and Australia have six and four lenders, respectively, featured on the ranking.
With 20.05% compounded annual growth in net income and similar growth in deposits, the total assets of HDFC Bank surged by 18.9% over the last five years to $267.12 billion at the end of 2021. While the total assets of SBI grew by 9.5% over the last five years, ICICI Bank saw its assets grow by 11.4% during the same period.
Nevertheless, the Indian banks boast of a higher rank in market capitalisation as of March 2022, with HDFC Bank commanding 7th rank in Asia pacific region. While ICICI Bank is ranked 14th on the list, SBI is occupied 17th rank.