We look at the list of Indian BFSI companies that have a strong presence in the domestic market
Banking, Financial Services, and Insurance (BFSI) constitute essential industries in the modern era. The banking sector alone in India is worth billions of dollars, making BFSI companies a significant part of the country’s economy and banking is often the bedrock of BFSI industries across the globe. Companies providing asset management and brokerage services are also included under this umbrella term.
One of the hallmarks of a developed or developing economy is the presence of a strong, pronounced, and well-regulated BFSI sector. The Indian BFSI industry is picking up steam at a considerable pace as the country’s economy continues to grow despite occasional setbacks. The reasons for the spurring of BFSI companies in the country include active involvement by the public and private sectors, robust regulatory guardrails, and the rise in technological innovation that has led to the development of UPI and online banking.
The term banking is quite broad as it encompasses: central banks (RBI for India), private banks, public sector banks, overseas banks, cooperative banks, regional rural banks, specialized banks, etc. Regarding insurance, there are various types, with the prominent ones being health insurance, life insurance, and motor vehicle insurance.
Top 5 BFSI companies in India
Bajaj Finance Ltd
As the lending and investment branch of the Bajaj Finserv conglomerate, the company boasts a gigantic customer base of 38 million in India. It’s the biggest financer of consumer durables in the country and among the most diversified NBFCs. Consumer, SME, and commercial lines form the core of their business, which is distributed across nine lines of products.
The entity was initially incorporated on March 25, 1987, as Bajaj Auto Finance Limited – a financial institution that wasn’t part of the banking industry. Subsequently, the company entered business and property financing. The organisation reached the landmark figure of 1000 crore rupees in terms of assets in 2006, only to rise exponentially further in the following years.
Headquartered in Mumbai, Maharashtra, the Housing Development Finance Corporation Limited (HDFC) was established in the year 1977. The conglomerate has made its mark in a plethora of sectors like general and life insurance, banking, realty, venture capital, asset management, education loans, deposits, and education. Their services include mutual funds, life insurance, general insurance, mortgage loans, etc.
HDFC maintains a presence in about 2400 towns and cities across India through a vast number of outlets. In 1996, the conglomerate opened its first overseas office in Dubai and subsequently expanded to Singapore and Dubai.
ICICI Bank Ltd
The Indian bank is one of the top 5 BFSI companies in the country, having established itself as a strong player over the years since its inception in 1994. Headquartered in Mumbai, the bank offers a wide array of banking products and financial services for retail and corporate clients. The core functions of ICICI are life and non-life insurance, investment banking, asset management, and venture capital.
ICICI Lombard, Prudential, Prudential Securities, etc., are some of the subsidiaries of the bank. ICICI has its footprint in the following countries: Bahrain, Singapore, the United States, Oman, Qatar, China (Hong Kong), UAE, South Africa, Bangladesh, Malaysia, Belgium, Germany, and Indonesia.
A state-owned entity and government corporation, LIC India easily makes the cut as one of the top 5 BFSI companies in India. Founded in 1956, the corporation is known for providing a plethora of products including investment management, health insurance, life insurance, mutual funds, pension plans, etc.
As a household name in India, the insurance company operates many branches, satellite offices, divisional offices, zonal offices, and corporate offices. LIC is known for investing in various sectors like banks, electricity transmission, chemicals, fertlisers, electronics, construction, infrastructure, healthcare, finance, technology, motor vehicles, etc.
State Bank of India
Mumbai serves as the corporate headquarters for the State Bank of India, which was established in 1955. The State Bank of India is a public sector banking and financial services statutory organisation in India. In the 2019 Fortune Global 500 list of the largest companies in the world, SBI is ranked 236th. It has offices abroad and in India. SBI Life Insurance Ltd, SBI Cards and Payment Services Ltd, SBI General Insurance, Jio Payments Bank, etc. are some of its subsidiaries.
This concludes our compilation of the top 5 BFSI companies in India.
Also Read – Union Budget 2023: BFSI industry leaders share their thoughts