SBI, HDFC, ICICI Bank among top 50 Asia Pacific Banks by Assets Value

IndiaRising:  Indian banks have emerged as standout performers in Asia-Pacific region, showcasing impressive growth and resilience in recent years. In 2023, three Indian lenders secured positions in top 50 banks by assets, marking a notable increase from two in previous year.

aggregate assets of se Indian lenders witnessed a remarkable surge of 50.5 per cent to reach $1.510 trillion in 2023. This significant growth was largely driven by merger of HDFC Bank Ltd. with its parent company, Housing Development Finance Corp. Ltd., in July 2022. Following merger, HDFC Bank's assets soared by 51.3 per cent to $466.35 billion, propelling bank up 13 places to rank 33rd in top 50 list.

India's robust economic environment, coupled with high credit growth, has fueled remarkable performance of its banking sector. Credit growth in country, currently world's fastest-growing major economy, stood at 15.6 per cent as of December 29, 2023, compared to 14.9 per cent a year earlier, according to Reserve Bank of India data. 

Indian government projected a 7.6 per cent GDP growth for financial year ending March 2024, following an impressive 8.4 per cent GDP growth in October-to-December quarter.

In contrast, Australian banks experienced mixed fortunes, with combined assets rising by 2.8 per cent to $3.241 trillion. Notably, Macquarie Group Ltd. dropped five spots to 50th in list, with assets declining by 18.8 per cent to $254.63 billion in 2023.

Meanwhile, aggregate assets of Singaporean banks rose by 3.7 per cent to $1.40 trillion. DBS Group Holdings Ltd. and United Overseas Bank Ltd. moved up in ranking, while Oversea-Chinese Banking Corp. Ltd. fell three places to 37th.

Chinese Banks Dominate Top 50 Lenders in Asia-Pacific

In 2023, banks from mainland China maintained ir dominance in S&P Global Market Intelligence's ranking of top 50 lenders by assets in Asia-Pacific region. Despite a slight decrease in number of mainland China-hequartered lenders in ranking, ir aggregate assets surged by 7.4 per cent to reach $38.228 trillion.

se Chinese lenders secured top four positions on list, with six of m making it to top 10. This remarkable performance comes amidst challenges in property sector of Asia's largest economy, where real estate contributes nearly a quarter of gross domestic product.

Industrial and Commercial Bank of China Ltd. retained its position as largest bank in region and globally in 2023. Agricultural Bank of China Ltd. moved up to second spot, surpassing China Construction Bank Corp., while Bank of China Ltd. secured fourth position. "big four" Chinese banks collectively expanded ir assets by 10.2 per cent to $21.905 trillion, with Agricultural Bank exhibiting highest growth rate at 14.3 per cent. 

China Bohai Bank Co. dropped out of top 50 list in 2023, making way for ICICI Bank Ltd., based in India, which entered ranking at 48th position. This marks only dition to 2023 list compared to previous year.

Angus Lam, senior economist for global intelligence and analytics at Market Intelligence, attributed rapid credit growth as a key driver behind expansion in assets for mainland Chinese banks. He noted that largest Chinese banks typically boasted strong asset quality, ample liquidity positions, and robust capital buffers, enhancing ir lending capabilities.