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Largest Public Sector Banks

  • Bhumika Dutta
  • Sep 24, 2021
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In any economy, banks have always been an integral part of society.  Banks are such financial institutions that provide many services and products like deposit management, loans, wealth management, exchange of currency, investment banking, and many more. Individual consumers, companies, and a variety of other institutional entities are among the customers of these banks.


Commercial banks have evolved and changed the way of their work with different rules and interest rates. Today, major banks serve their traditional customers, who include individual consumers as well as large and small businesses, by providing savings and checking accounts, certificates of deposit, loans, and other related services. 


Many of them also have investment banking operations, where they deal with corporate and institutional customers to provide underwriting of stock offerings, brokerage, and M&A advice. 


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Functions of Public Sector Banks


Since the country's establishment, the public banking industry has come a long way. With the advent of technology, core banking was introduced in the country, and it has since expanded to every nook and cranny. It has made a lot of things easier for both clients and bank workers. 


The primary role of any public or private sector bank is to mobilize the resources and capital amassed via various deposits and schemes for varying periods of time and lend them to its own customers at higher rates of interest in order to maximize profit from the money. 


The bank also offers its valued clients’ lockers, remittance, draught production, check to collect and transfer, and bank guarantee credit. It also provides insurance and mutual fund plans to its consumers, in addition to lending programs and money savings.


Most public-sector banks provide less personalized care to their customers. As a result, customer complaints about bad service are rather prevalent in public sector banks. Customers, on the other hand, receive higher interest rates from public sector banks. Customers can also obtain various loans with low-interest rates.


In this article, we are going to list the top 10 public sector banks of the world. 


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Top Public Sector Banks


Listed below are the top 10 best public sector banks and all the asset values and market capitalization values are sourced from the daily records and Investopedia.



  1. Industrial and Commercial Bank of China


With possession of assets over $3.62 trillion (according to the daily records) under AUM, it is one of the major banks of the world. It is a state-owned commercial bank and the largest public sector bank. The services provided by this bank include loans, card services, financing for businesses, money management services for high net worth companies or individuals, etc. 



  1. JP Morgan Chase & Co.


JPMorgan Chase is also one of the largest multinational banks and financial services holding firms that specializes in corporate financing, asset management, wealth management, investment and consumer banking, and other services. According to Investopedia, the market capitalization of this bank in AUM is $280 billion and has assets of $2.45 trillion. 



  1. CITI Bank


CITI bank was founded in the year 1902 and is one of the oldest banks in the world that provides services to customers to increase their overall turnover. It also provides NRI services to its customers. The bank has over 7500 employees working all over the world and has over 750 ATMs in every country. 



  1. Japan Post Holdings Co. Ltd.


Japan Post Holdings has a total market cap of $34.4 billion and it is one of the unique banks on the list as it deals with ventures of banking as well as life insurance, logistics, and other businesses. The firm is also well-known for its Japan Post division, which is involved in mail delivery and post office administration throughout Japan, as well as its banking arm, Japan Post Bank.


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  1. HSBC


HSBC was originally created in England in the year 1836 and now it has over $2.57 trillion assets. It has more than 6000 branches in 80 countries throughout the world. The main objectives of the bank are credit card services, internet banking, debit card services, loans as well as foreign exchange services. It is one of the oldest banks that was formed. 


  1. Standard Chartered Bank


This bank was established in 1969 and it is one of the most efficient banks as it has one of the top-notch customer services. It provides credit cards, debit cards, loans, internet banking, and other generic services like any other bank. It has also won the best bank award before. 


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  1. Bank of America Corp.


Bank of America is a bank in the United States that provides services to both individuals and companies of all kinds. Bank of America offers a number of business and wealth management firms services through its Global branches in addition to deposit and checking accounts through its Consumer Banking branch. It has a market cap of $188.5 billion and has more than 5000 branches. It has total assets of $2.15 trillion. 


  1. Agricultural Bank of China Ltd.


The Agricultural Bank of China is a state-owned organization that offers not just personal and corporate banking services, but also a unique set of products for agricultural customers such as small farming enterprises and bigger agricultural wholesale firms. It has a market capitalization of $131.5 billion.



  1. WellsFargo:


Wells Fargo provides a wide range of financial services to both individual and corporate customers. The market cap of this bank is $123 billion in the AUM. In recent years, the business has been embroiled in a phony accounts controversy that has harmed a broader range of the banks' individual clients, with the US government recently fining Wells Fargo $3 billion as part of the continuing proceedings. 



  1. Crédit Agricole SA:


Crédit Agricole SA, the only European bank among the top ten, is the world's largest cooperative financial institution by AUM with a market cap of over $22 billion. The company was founded to assist agricultural customers, but it currently serves a wide range of individual and commercial clientele.


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Advantages and Disadvantages of Public Sector Banks


Public sector banks have a lot of advantages as compared to other banks. Some of these are:


  • Deposits with a high-interest rate

  • Loans with low-interest rates

  • Employees have complete job security.

  • This personnel is also eligible for a pension upon retirement.

  • Provide services to a huge number of customers.

  • Provide their services to the rural areas of the country provide financial services through numerous branches


Everything has both pros and cons. The same is the case with Public sector banks.


Most public banks across the world are confronted with several problems. These difficulties are also making them unpopular in the public eye. Here are some of the drawbacks of public sector banks.


  • At the managerial level, there is a large bureaucratic system.

  • Inability to make a major financial choice in a timely manner

  • Customers should receive less personalized attention.

  • There have been far too many complaints about the staff' bad service.

  • The majority of public-sector banks are embroiled in major corruption scandals.

  • The customer default rate is high.

  • Banks in the public sector spend a lot of money on financial operations.


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Irrespective of the cons mentioned above, Public sector banks are much more efficient in functioning than the private sector ones. The customer’s money is in safe hands and there is an assurance of the same. 


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Before choosing a bank one needs to be aware of each and everything about it. Be it of any sector, it should be competent enough to win a consumer’s trust.

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