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How To Choose The Best Private Bank in India

by Ryan North
Guidelines for selecting top private Bank in India

The Indian banking sector is divided into two sectors, i.e. private banks and public sector banks. Since the liberalization, private banks in India have grown rapidly. With the use of the latest technology, innovations, monetary tools, and techniques, Private Banks have made their presence dominant. An increase in the number of entrepreneurs and millionaires has made private banking in India extremely popular.

Guidelines for selecting top private Bank in India

In Private Banks, major parts of the stake or equity are held by private shareholders and not by the government. private banks in India offer a huge range of wealth management services such as portfolio management, tax services, insurance, and trust and estate planning.

Choosing the best private bank in India amongst various options available can be challenging. Here are a few guidelines that will help you choose the best private bank.

How to Choose the Best Private Bank Services

1. Tech Savvy Online Banking

Visiting a bank every single time for minor banking-related work and other chores can be both difficult and time-consuming. With our fast-paced life, technology has an important role to play. Today everything is just a click away. Therefore, Internet Banking and Online Banking are important factors that need to be considered while choosing a private bank. Another aspect of research is to see whether the Bank’s online internet banking portal incorporates all billers. There must be a facility for smooth payments of bills like mutual funds, insurance, credit card payment, etc. Also, inspect if the bank is tech-friendly and is upgrading itself to continue to provide a better customer experience.

2. ATM

ATM services

Nowadays individuals hardly carry huge amounts of cash with them. But an urgent cash requirement can occur anytime. So, one must consider a bank that has a wide network of ATMs across various locations. ATMs accessible at nearby locations easily will always be preferable.

3. The Fee Structure for Services

types of fees that private banks charge


There are various types of fees that private banks charge.  The fee structure can differ from one bank to another. It could be a flat fee structure or fees charged after every transaction. There is also a possibility that one is paying some hidden fees that they are unaware of. So, it’s important to understand the bank’s fee structure well.

Going through a lot of documents and disclaimers can be a daunting task; therefore, having a one-to-one conversation with your private banker can help you decide which bank you should opt for. This will aid in understanding the various fees the bank charges and the transparency in their policies.

4. Ratios

One needs to look into the Ratio aspect to be sure of the safety of their money. Various ratios can help determine the stability of the Banks.

  • Capital Adequacy Ratio

It indicates the capacity of a bank to maintain capital in proportion to the various risks that can hit them. RBI has suggested maintaining a minimum Capital Adequacy Ratio of 9%. This ratio acts as an indicator of bank leverage.

  • Return on Assets Ratio

This ratio indicates the net income generated by the banks on its total assets (loans, securities, cash, etc). This ratio helps in understanding how effective the bank is in converting their investments into net income. The higher the ROA, the better it is.

5. Services

banking services

One of the important aspects while choosing the best private bank among the list of private banks in India is the services they provide. Choose a bank that gives you access to multiple markets and investment funds. The minimum number of services a private bank should provide is as follows.

  • Deposits
  • ETFs
  • Government bonds
  • Equities in major markets
  • Corporate bonds
  • Emerging market bonds
  • Options
  • Investment funds (banks own and others)
  • Futures
  • Foreign exchange in all major currencies

Yet another significant service that top private banks provide is assigning individual relationship managers to their clients. This relationship manager will be the point of contact for all your queries and will assist you with all the banking solutions. A private banker will be involved in understanding the ever-changing needs of the customers. They will help customers with investment portfolios, family matters, overall financial planning, corporate finance, and succession planning. They are one point of contact where all clients’ needs are met.

Top 10 Private Banks in India

Here is a list of top private banks in India:

  1. HDFC Bank
  2. ICICI Bank
  3. Axis Bank
  4. Kotak Mahindra Bank
  5. Indusind Bank
  6. Federal Bank
  7. IDFC First Bank
  8. Yes Bank
  9. South India Bank 


Today, private sector banks in India are no longer just focused on selling their products. Their approach is to understand the client’s needs, current financial situation, their motivations, and guide them accordingly. Private banks help you categorize, control, and upgrade your financial affairs. They offer the services of both banks and financial planners i.e. planning, investing, borrowing, and banking under one roof. They help you recognize and reach your financial goals by connecting you to distinctive opportunities and people.

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