Three Indian banks—HDFC Bank, ICICI Bank, and the State Bank of India (SBI)—have secured spots in the top 25 global banks by market capitalization in the fourth quarter of 2024, according to a recent report by GlobalData, a leading data analytics and research firm. HDFC Bank, ICICI Bank, and SBI ranked 13th, 19th, and 24th, respectively.
HDFC Bank ended Q4 2024 with a market capitalization of $158.5 billion, marking a modest increase of 1.6% amid rising competition and cost pressures. ICICI Bank emerged as a standout performer, with its market cap growing by 25.8% to $105.7 billion, reflecting the strength of India’s burgeoning digital banking and credit ecosystem. Meanwhile, SBI’s market cap stood at $82.9 billion.
The aggregate market capitalization of the top 25 global banks saw a significant increase of 27.1% year-on-year, reaching $4.6 trillion in Q4 2024 compared to the same period in 2023. JPMorgan Chase maintained its position as the world’s largest bank by market cap, recording an impressive growth of 37.2% to $674.9 billion by the end of Q4 2024.
Goldman Sachs experienced stellar growth of 42.9%, propelling it to the ninth position in the global rankings, up from 13th place in the previous quarter. The report attributed the rise in stock values during Q4 to the US Federal Reserve’s interest rate cuts, although other regional markets faced pressure due to concerns over trade tariffs.
Murthy Grandhi, company profiles analyst at GlobalData, noted that the Federal Reserve implemented consecutive interest rate cuts of 25 basis points in November and December 2024. However, the Fed’s decision to reduce the projected number of interest rate cuts for 2025 in December sparked a stock market sell-off, driven by concerns over persistent inflation.
The report also projected that tariffs expected to be imposed under Donald Trump’s administration and planned tax cuts in 2025 may offset each other. However, several risks are likely to influence market performance and economic growth, including rising sovereign debt, a stronger dollar, foreign outflows from emerging markets, geopolitical tensions in West Asia, China’s economic stimulus, and the yen carry trade.
Indian banks have demonstrated resilience in the global market, with ICICI Bank’s remarkable performance highlighting the growing strength of India’s digital banking sector. As the financial landscape continues to evolve, the focus will remain on navigating the complexities of economic policies and global market dynamics.
