India’s banking in 2025: Resilience and the power of brand-building

2025 has been a milestone year for India’s banking sector. Amid global volatility, inflationary pressures, and rapidly evolving consumer expectations, Indian banking brands have not only demonstrated resilience but have also signalled sustained confidence and growth.

According to the Kantar BrandZ India 2025 report, banking remains among the most valuable and competitive categories in the country. Financial services account for 28% of the India Top 100 brand value, with five banks in the top 20. 

This dominance underscores the sector’s ability to combine operational excellence with long-term brand equity – a combination that has proven critical in navigating uncertainty.

Kantar’s analysis highlights that middle-class consumption is increasingly aspiration-led, with unsecured loans rising even as savings account sign-ups plateau. This indicates a structural tilt toward borrowing for lifestyle upgrades – SUVs, premium FMCG, and housing – rather than relying solely on income or savings.

Why this matters for BFSI brands

India’s credit-driven nature amplifies the strategic importance of banks as lifestyle enablers. They don’t just facilitate transactions; they enable aspirations. 

This is why financial services dominate India’s BrandZ rankings (28% share), unlike global rankings where tech leads. Banks here are central to economic mobility and consumer confidence.

Banks as lifestyle brands

Indian banks have evolved beyond transactional entities to become lifestyle brands. Deeply ingrained in daily life, they fuel aspirations ranging from home ownership to education, facilitate digital convenience, and even influence consumer confidence.

This proximity gives BFSI brands a unique emotional resonance, making them indispensable in a country where financial decisions are both rational and deeply personal.

Homegrown strength and trust

Another reason BFSI dominates India’s brandscape is that it is homegrown. Banks interact directly with millions of Indians every day, not very different from leading FMCG brands, with the difference that here trust/faith is even more critical.

So, brands such as HDFC, ICICI, SBI, and Kotak have all invested heavily in meaningful difference – building emotional equity alongside functional strength. This trust factor is amplified in a market where financial inclusion is still a work in progress, and where consumers value reliability above all else.

The numbers tell the story:

• HDFC Bank reclaimed the No. 1 spot as India’s most valuable brand, with a brand value of $44.9 billion, up 18% year-on-year.
• ICICI Bank surged to rank 5, growing 32% YoY to $20.6 billion.
• State Bank of India and Kotak Mahindra Bank also posted healthy gains, reinforcing the category’s strength.

This growth is anchored in multiple levers: robust retail credit demand, disciplined risk management, and deepening digital adoption. Private sector banks, in particular, have led on deposit growth and digital innovation, reinforcing consumer trust.

Financial inclusion: The untapped opportunity

Despite progress, India’s financial inclusion story still has significant headroom. According to the Kantar x SEBI Investor Survey 2025, 63% of households are aware of market investments, yet only 9.5% actually invest. 

Retail participation is rising – demat accounts have surged to 19.4 crore in 2025, but the gap between awareness and action remains stark. This signals a massive opportunity for banks to drive retail investment penetration, leveraging trust and technology to simplify access and build confidence.

For BFSI brands, the current situation is not just a business opportunity; it’s a chance to shape India’s economic future by democratising wealth creation. Banks that position themselves as enablers of financial empowerment, not just lenders, will win both market share and mindshare.

Brand building: The differentiator

In a market where fintechs and new-age platforms are intensifying competition, functional strength alone is no longer enough. Winning today requires emotional connection, clarity of purpose, and omnipresence across a fragmented media ecosystem.

Kantar’s Meaningful, Different and Salient (MDS) framework shows that brands scoring high on these dimensions grow faster and remain better insulated during uncertainty. In 2025, leading banks leaned into this principle – using advertising not just to promote products, but to reinforce trust, reassurance and relevance.

Industry estimates suggest BFSI advertising spends touched Rs 5,000 crore in FY25, driven by festive campaigns, tax-season messaging, and digital product launches. Importantly, this surge reflects a pivot toward full-funnel communication, aligning campaigns with financial moments and consumer contexts.

HDFC Bank: Setting the gold standard

HDFC Bank’s leadership is a case study in disciplined brand building. Its campaigns consistently communicated reliability, scale, and partnership – qualities that matter deeply in financial decision-making. 

The “Vigil Aunty” safety persona became a signature asset, reinforcing trust and security in digital transactions while humanising the brand.

ICICI Bank: Growth through meaning

ICICI Bank stood out for its sentiment-driven storytelling, focusing on empowerment and life moments rather than pure product features. 

Recent campaigns have leaned into themes of family security, progress, and confidence, often portraying relatable scenarios that evoke trust and optimism. 

This emotional approach resonates strongly with ICICI gaining significantly on “meaning” in 2025, a critical growth driver in a trust-led category.

Looking ahead

The outlook for India’s banking sector remains positive. As credit demand grows, digital adoption deepens, and competition intensifies, brands that invest in long-term equity will be best placed to win.

The experience of 2025 reinforces a simple truth: in financial services, trust is built over time – but it is brand building that sustains growth.

(Soumya Mohanty is the Managing Director & Chief Client Officer at Kantar. She leads with a strategic vision, focusing on amplifying consumer insights to support high-level business decisions.)