What is Market Capitalization?

It is the value of a company that is traded on the stock market, calculated by multiplying the total number of shares by the present share price. So, the value of market cap is as at a particular point in time since it changes with the variable of market prices of the shares.

Top 10 Banks as per Market Capitalization:

The above infographic is the reflection of the top 10 banks as per market capitalization. Also, the % contribution to the sector market cap has been derived for these top 10 banks to understand how much weight in all private and public banking companies listed on BSE. This percentage was calculated as follows [For Example]:

% Contribution of HDFC Bank = (Market Cap of HDFC Bank) / (Total Market Cap of Private & Public Banks)

Total Market Cap of the public and private banks listed on BSE is Rs. 19.18 Lakh Crores out of which Private Banks of Rs. 15.17 Lakh Crores and Public Banks of 4.01 Lakh Crores. The data was considered based on the mentioned source as on 26th August 2020 before closing the market on the mentioned date. Total Market Cap as per NSE is 19.14 Lakh Crores. So, there is a variation of around 0.17% which is not significant. Data for the above infographic is based on BSE.

Conclusion:

The above infographic indicates that HDFC bank contributes around 32% of the total market of private and public banks as compared to 2nd most contributor is Kotak Bank which contributes around 14.69%. Based on this, the influence of the HDFC Bank in total listed banks can be understood and it also indicates a strong position of HDFC Bank in the market. SBI secures the 4th position as per market capitalization which is the public bank while the top 3 are the private banks.