Leading private sector banks in India 2023, by market cap

HDFC Bank was the leading Indian private bank based on market capitalization of over 12 trillion Indian rupees as of December 2023. ICICI and Kotak Mahindra followed rounding off the top three during the measured time period. HDFC Bank had remained the leader in this sector, in part, due to its significant ramp up in digital service offerings.

Digital payments in India

Increased smartphone and internet penetration, and a mass adoption of the mobile-based, real-time payment platforms have paved way for India as one of the fastest growing digital payment economies in the world. In the recent years, the country has been moving towards a cashless economy. The government's role in making online payments for tax returns, GST payouts and even relief packages during the pandemic also boosts the market.

Impact of COVID-19 on digital payments

The Reserve Bank of India and National Payments Corporation of India urged people to increase the use of digital payments after the onset of the coronavirus (COVID-19) pandemic. E-commerce players, retailers, service providers encouraged contactless online payments and deliveries to minimize the risk contact while handling money. The pandemic boosted an already flourishing online payment market. This mode of paying, initially thought of as a convenience, has now become a necessity, thanks to keep physical contact to a minimum.