ranking of banks

8/7/2019 ranking of banks

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2

CONTENTS

BEST BANKSINSIDE

Editorial

Indian banks need to scale top 4

Theme Story

Gamechangers in the Indian

banking sector 6

Methodology Rationale

Looking to strengthen and consolidate,

maintain credit quality and profitability 10

Nationalised Bank

Rank 1: Punjab National Bank 18

Rank 2: Bank of Baroda 20

New Private Sector Bank

Rank 1: HDFC Bank 22

Rank 2: Axis Bank 24

Old Private Sector Bank

Rank 1: Federal Bank 26

Rank 2: Tamilnad Mercantile Bank 30

Foreign Bank

Rank 1: JP Morgan Chase 32

Rank 2: Citi 34

Credit Quality

Rank 1: IndusInd Bank 36

Tables

Detailed rankings with banks

categorised into public sector

banks (PSB), Old Private Sector

Banks (OPSB, New Private

Sector Banks (NPSB) and

Foreign Banks (FB) 38

Regulator Speak: K C Chakrabarty

“Go for financial inclusion” 54

Guest Column: K V Kamath

Weathering the storm and

emerging a global force 56

THE FINANCIAL EXPRESS MARCH 2010

‘We aspires to becomea global bank’

K R KAMATH,MD&CEO, Punjab National Bank

‘We are a delta on theIndian economy’

ADITYA PURI,MD&CEO, HDFC Bank

18 22

‘Emerging as a lender to the common man’

M VENUGOPALAN,Chairman, Federal Bank

‘We will cater witha suite of services’KALPANA MORPARIA,CEO, JP Morgan

26 32

‘Financial inclusionplans are profitable’

V ROMESH SOBTI,MD&CEO, IndusInd Bank

‘Go for financialinclusion’K C Chakrabarthy,Deputy Governor, RBI

36 54

Weathering the storm andemerging a global force

K V KAMATH,Chairman, ICICI Bank

56






EDITORIAL

THE global financial crisis and its aftermath forced banks to introspect about

the kind of financial sector architecture India should have in the years ahead.

Indian banks escaped the contagion because they were highly regulated at

home and not too integrated with the global financial system in terms of sharing the

risks inherent in the trillions of dollars of worthless financial products.

But this does not mean that a rapidly rising Indian economy and its financial

sector can avoid integrating with the global financial system. India cannot become a

global player unless its banking system reinvents itself to deal with the thousands

of businesses which are doubling in size every 4 to 5 years. The one key learning

after the financial crises was that Indian banks needed to have size. When

international credit delivery froze for several months after the Wall Street crises,

foreign lenders stopped lending and Indian banks were called upon to rescue

companies.Unfortunately, Indian banks found they did not have big enough balance

sheets to meet the exigencies .This resulted in a healthy debate over how Indian

banks can actually build scale to not only fuel the global ambitions of its domestic

businesses, but also to take banking to the next 400 million in rural India.

The debate over creating a few Indian banks which rank among the top ten in

Asia is not a new one.But it has assumed fresh urgency in the context of the balance

of economic power rapidly shifting towards Asia. God forbid, if there is another

financial meltdown and a double dip recession in the West, India will need banks of

the size and scale which will keep feeding the growing domestic economy. The real

macro-economic challenge is of garnering another 10% of GDP as savings over the

next decade. Banks have a big role in realising this objective. Initially the

government thought it could persuade public sector banks to merge and thus create

scale.There is a counterview that such mergers cannot be forced in a top down

manner, and must be effected in a bottom-up organic way based on real synergies.

The jury is still out on this one.

Pranab Mukherjee intends to create more competition by issuing new banking

licenses. This is good news ; more competition will strengthen the domestic

financial sector and will create conditions for consolidation.

This year FE best Banks has introduced a new test –liquidity which measures

how much a bank is in a position to meet its liabilities with current assets. In this

context,some banks which had a much more diversified base of small depositors

had lower bulk borrowings to meet growth on the lending side. Many banks are now

returning to the virtue of lowering the borrowing to deposit ratio.We hope the

analysin the FE Best Banks Awards would help in creating new standards for India’s

banks to move to the next level of globalization as well as localization i.e taking

banking to the next few hundred million unbanked in rural India. We are thankful to

our knowledge partner Ernst & Young for evolving newer standards to assess the

strength,profitability and efficiency of banks.

M K VENU

Indian banksneed to scale up

FE-EY

BEST BANKSSURVEY 2009-10

Chairman of the BoardViveck Goenka

Group Editor-in-Chief Shekhar Gupta

Managing EditorM K Venu

Project Co-ordinatorAkash Joshi

Editorial Co-ordinatorsSitanshu Swain, Ayesha Dominica Singh,

Sushila Ravindranath

Editorial

Mahalakshmi Hariharan, Kumud Das,Saikat Das, Sajan Kumar

Desk Ayesha Dominica Singh

Research TeamSujith Pillai, Sandeep Nalge, Tara Boi

PhotographersA Srinivas, Mahindra Parikh, Vasant Prabhu,

Prashant Nadkar, Ganesh Shirsekar,Dilip Kagda, Pradip Das, Ritika Jain

Design TeamManoj Bhramar, P L Santosh,

M P Singh, Rohnit Phore

Marketing Co-ordinatorsThe Express Group

Space Marketing Team

ProductionB R Tipnis & Team

Printed for the proprietors,THE INDIAN EXPRESS LIMITED,

by Ms Vaidehi Thakar atThe Indian Express Press, Plot No. EL-208,

TTC Industrial Area, Mahape, NaviMumbai 400 710 and published from

Express Towers,Nariman Point, Mumbai 400 021.

■ Copyright:The Indian Express Limited.All rights reserved. Reproduction in any manner,

electronic or otherwise, in whole or in part, withoutprior written permission is prohibited.



I B R / K a u t i l y a

1 3 3

Conventional way

B R I D G E S

H I G H W A Y S

T U N N E L S

T O L L - R O A D S

A I R P O R T S

R E A L T Y




Viren H Mehta

THE Indian banking sector has

emerged as one of the strongest

drivers of India’s economic

growth.Positive changes witnessed in

the last two decades have impacted

every aspect of banking,ranging from

regulatory standards to customer

management.Indian banks adapting

to the changing landscape along with

the vision of the regulator and the

Government in shaping the future

growth of banking were two of the

noteworthy features of this

transition.

While banks evolved their

strategies in response to increasing

competition and changing customer

requirements, the regulator guided its

growth with policies of gradual

liberalisation and benchmarking the

domestic system with the best in the

world, even if it appeared

conservative at times.

As the world recovers from the

global financial crisis, Indian banking

has remained resilient while con-

tinuing to provide growth

opportunities.With the increased

participation of new private sector

and foreign banks, the Indian banking

industry has become fiercely com-

petitive. Competition will be further

intensified with the proposed entry of

new private players and non banking

financial companies (NBFCs).

Financial inclusionGiven the sheer size of the

unbanked population in India,the

goal of financial inclusion not only

carries tremendous social appeal, but

also makes definite economic sense.

International experience with

financial inclusion has sufficiently

proved that achieving growth,

aggressively tackling competition and

social inclusion can go hand in hand.

Indian banks will tremendously

benefit themselves and the society by

developing focused strategies to

augment the outreach of their

services to attract the mass market

and consider it as a potential business

opportunity than as a regulatory

mandate.

As urban markets get adequately

penetrated the competition to sustain

and grow the market share, maintain

margins will force banks to look for

newer markets. With rural

development gaining a prominent

position on government agenda,

income,awareness and aspirations of

the rural population are bound to

Gamechangers in the Indian banking sector

THEME STORY

Illustration:ROHNIT PHORE






THEME STORY

increase. Banks quick to establish

presence in the vast hinterland and

customise financial products for the

poor will capture growth

opportunities.Deployment of acombination of multiple delivery

channels capable of offering timely

convenient and cost-effective services

will stay ahead of the curve.

A feasible option to explore would

be to effectively partner with

microfinance institutions,local

communities, business

correspondents even NGOs to deliver

financial services and benefit from

their reach.Use of information

technology is another valuable tool.

ConsolidationTo survive in an increasingly

competitive environment,market

dynamics point towards attaining a

sizeable scale and capital base,

possible only through consolidation.

Backed by political will and

favourable economic variables,the

long impending objective to develop a

few Indian banks of global scale is no

longer based

on surreal expectations.

To be relevant on a regional or

global basis, it will be essential for

Indian banks to explore inorganic

expansion within and outside India.

Mobile bankingWith the onset of mobile banking,

the industry finds itself at the

threshold of the next major

technological leap.M-banking offers

significant cost-saving advantages by

way of reduced transaction costs and

is even expected to replace many

delivery and payment systems.The

large and ever-growing mobile base

provides banks with the opportunity

to offer services in areas where they

have a limited branch presence. M-

banking can be an effective tool for

capturing the unbanked rural market

as almost 50% of new mobile

subscriptions come from rural areas.

M-banking can be made more

incisive if challenges such as

awareness,coverage in rural and

semi-urban areas, widening the scope

of banking facilities, transparency

and security issues are addressed

efficiently. The pervasive

effectiveness of mobile technology

will drive regulations that allow

greater use of this technology for

banking transactions whilst

effectively controlling it abuse.

Risk managementThe Indian banking industry is

expected to witness unprecedented

growth in the volume of business in

the coming decade and this brings

with it huge challenges for risk

management.The financial turmoil

also underlined the indispensability

of the process of internal controls,

corporate governance and risk

management.

A bank with sound risk

management practices in place will be

able to precisely ascertain the credit

profile of its borrowers, resulting in

enhanced ability to predict default,

reduce bad debts and raise

collections. This will in turn enable

lower capital requirements,improved

performance and higher risk adjusted

rate of return.

The proposed implementation of

advanced approaches of Basel II will

ensure better quantification and

accounting of various risks thereby

ensuring more holistic risk

management system in the Indian

banking industry.

Quality risk management systems

could very well act to the advantage of

a bank in a country like India, which

has a shallow documentation of credit

history, especially in retail banking,

and a nascent culture of credit

information sharing.

Account-centric approachWith rise is competition,banks are

grappling with increased customer

migration as switching costs are

nearly negligible and product

differentiation is replicated with ease.

This has led to customer

understanding and superior service

gaining tremendous prominence.To profitably stay in the race,

successful banks are adding a new

dimension to customer engagement.

They are now adopting a complete

account-centric approach.This

essentially involves acquiring a

customer at an early stage and then

building a long-term relationship,

offering different products and

services not only suitable for different

life stages of the client.

Human capital developmentThe skill level, attitude and

knowledge of the employees have a

substantial bearing in determining

the competitiveness of a bank.

Needless to say, banks making

investments in their human talent

will reap the benefits.

Cost optimisation

Multiple channels, varied

customer profile and vast geographic

spread have contributed to the

increased distribution cost for banks.

Banks should target the optimal

mix of channels to reach the right

customers at minimal cost. Banks are

increasingly leveraging technology to

achieve economies of scale in

operations,besides aiming for

administrative efficiency.

Another focus area is outsourcing

of non-core functions and banks that

manage these challenges will be able

to differentiate themselves in the

market.

ConclusionThe banking sector in India offers

huge opportunities.Upward direction

of interest rates, increasingly

demanding customers, focus on

financial inclusion, technological

advancements, competition for

human talent and efficient utilisation

of a bank’s resources are some

inherent challenges,which need to be

addressed to unleash the competitive

advantage offered by the Indian

banking sector and energise growth.

The author is director, Ernst & Young

India Pvt Ltd.

Quality riskmanagement systems

could very well act to theadvantage of a bank

in a country like India,which has a shallow

documentation

of credit history






METHODOLOGY RATIONALE

Husain Diwan and Viren H Mehta

THISyear’s edition of the FE-EY

India’s Best Banks Survey is set

against the backdrop of

recovery in the global economy after

the widespread financial crisis.The

Indian economy continued to grow at

a decent rate as compared to the rest of

the world.However, the current crisis

has exposed certain limitations and

weaknesses. Liquidity problems and

credit defaults have made banks more

risk-averse.A gradual shift from

"Managing Crisis" to "Managing

Recovery" is now the focus of

regulatory strategy.

Despite the financial turbulence,

the economic growth of India

remained reasonably unscathed.

As ever, each category of banks -

public, old private, new private and

foreign banks face its own unique

challenges ranging from credit

defaults and restructuring of loans,

liquidity, reputation and dwindling

net interest margins to technology

and manpower.

Considering these aspects, Ernst

& Young has ranked the players with-

in the Indian banking sector - 27 pub-

lic sector banks, 13 old private sector

banks, 6 new private sector banks

and 12 foreign banks based on their

natural genres.

Five major criteria were selected

to compare performance of the

Indian banks. These criteria are -

Strength and Soundness, Credit

Quality, Growth, Profitability and

Efficiency. Considering the current

scenario of Indian banking, compli-

mented with moderate economic

growth, we believe every Indian

bank would be evaluating itself and

Looking to strengthen & consolidate, maintain credit quality & profitability

Illustration:ROHNIT PHORE





making peer comparison based on

the major criteria selected as above.

Trust of the depositors on a bank

and trust of the bank on its borrow-

ers continue to form the foundation

of the banking business. The meas-

ure of this trust is the Strength and

Soundness of a bank. The ability of

a bank to absorb shocks is dependent

on its strength and soundness.

Accordingly, Strength and Soundness

has been selected the first criterion

to measure Indian banks with high-

est weight of 0.25.

As a result of greater emphasis on

higher exposure to sensitive sectors,

consumption loans, and restructur-

ing of debt, Credit Quality is once

again a key factor on which Indian

bank’s performance would revolve

and is therefore selected as the sec-

ond criterion. With the global melt-

down and defaults in credit repay-

ment due to liquidity and confidence

concerns, admittedly, Credit Quality

has re-emerged as a concern. Hence,

the weight for Credit Quality has

been assigned a weight of 0.20.

The slow economic growth experi-

enced in FY09 was mirrored in the

growth of Indian banks. Intense

competitive forces played a very

important role in determining

banks’ strategies for market domi-

nance. Therefore, banking assets and

earnings grew along with the entire

economy, but the leaders of the pack

were required to stand out.

Accordingly, Growth is the third

major criterion selected with an

assigned weight of 0.20.

With India experiencing a recov-

ery in many areas of the economy in

the year gone by, it is only expected

that there is a consequential impact

on the financiers of the economy. In

these times, it is imperative that the

banks should have a minimum

threshold in terms of size and ade-

quacy of capital to reflect soundness

and maintain an improved credit

quality. However, all these must be

achieved whilst maintaining prof-

itability. Therefore, Profitability is

selected as the fourth major criterion

and assigned a weight of 0.20 match-

ing the imperative for banks to

achieve growth combined with quali-

ty assets.

In the environment of upward

pressure on interest rates, demand-

ing customers, and greater need for

financial inclusion, it is absolutely

essential that banks operate and

‘sweat’ their resources efficiently.

Hence, it is important to evaluate a

bank’s performance based on effi-

ciency with which it has used itshuman, technological and financial

resources. Therefore, Efficiency has

been selected as the last major crite-

rion with a weight of 0.15.

Further, six sub-criteria have also

been selected within each major cri-

teria to cover the entire spectrum

within each of the major criterion.

Size, in terms of Capital,

Networth and Total Assets, are indi-

cators of the fundamental strength of

a bank around the world, whereas,

Adequacy of Capital, portion of

Borrowings as compared to Deposits

and Liquidity represent soundness

and stability of a bank. Liquidity has

been calculated based on the maturi-

ty pattern-upto one year of advances

and investments less deposits and

borrowings. Accordingly, these sub-

criteria were selected to measure

banks based on their Strength and

Soundness. Banks are often com-

pared using Total Assets as a bench-

mark. In the current economic con-

text where efficiency in use of capi-

tal and effectiveness of deployment

of deposits are more respected, a

weight of 0.20 is assigned to Total

Assets. Networth comprises both

total capital and accumulated profits

and accordingly, is assigned the

weight of 0.20, followed by Liquidity

and extent of reliance on shorter

duration funds as compared to

deposits (Borrowing/Deposits Ratio)

with both being assigned weights of

0.20 and 0.15 respectively. Capital

Adequacy Ratio and Core Capital are

powerful indicators of a bank’s

inherent strengths. However, very

high Capital Adequacy Ratio and

Core Capital could also mean ineffi-

cient use of capital. Therefore, a

lower weight of 0.15 is assigned to

Capital Adequacy Ratio and 0.10 to

Core Capital.

Increase in Gross NPA,

Restructured Loans, Net

NPA/Networth, Gross NPA/Gross

Advances, Increase in Gross

NPA/Increase in Gross Advances

and Increase in Net NPA/Increase in

Net Advances are the sub-criteria



Viren H Mehta (left) andHusain Diwan of Ernst & Young





selected to compare banks on Credit

Quality. The rate of increase in gross

non-performing advances compared

with the rate of increase in gross

advances, and the rate of increase innet non-performing advances com-

pared with the rate of increase in net

advances are considered to be of

relatively higher importance to a

bank’s management. Accordingly,

these sub-criteria are assigned the

highest weights of 0.25 to assess

Credit Quality. The increase of Gross

NPA has been assigned the next level

weight of 0.20. One of the policy

measures to assist businesses to tide

over the economic slowdown was to

encourage banks to restructure loans

to customers without affecting their

classification. Through this special

regulatory accounting treatment,

although these continue to be classi-

fied as performing, they evidence

inherent credit weakness.

Therefore, the quantum of restruc-

tured loans, introduced this year,

and networth rendered non-perform-

ing are the next important aspects of

Credit Quality and are assigned the

weights of 0.10. Additionally, the por-

tion of a bank’s gross advances com-

prising gross non-performing

advances is assigned a lower weight

of 0.10.

Growth in Total Assets, Advances,

Deposits, Net Profits, Net Interest

Income (‘NII’) and Increase in Net

Worth are selected as parameters for

assessing Growth. The need for

increasing market share in deposits

to fuel its funding requirements of

banks on an effective basis have

resulted in assigning higher weight

to growth in Deposits of 0.30, fol-

lowed by equal weights of 0.20 for

growth in Advances and Net Profits.

Growth in Total Assets would not

necessarily result from growth in

banking operations as banks could

use the safe-habour of government

investment, instead of lending.

Hence it is assigned a weight of

0.10. Further, with the current

stress on net interest margins due to

current pressure on interest rates,

focus on improving these has also

sharpened. With implementation

of standardised Basel II norms,

banks are also focussed on mainte-

nance of their networth. Hence, this

sub-criteria is assigned a weight of

0.10 that are a notch lower in

comparison with other aforesaid

sub-criteria.Return on Assets, Yield on

Advances, Return on Networth, Cost

of Deposits, Cost-Income Ratio and

Return on Investments are the sub-

criteria selected to measure banks

based on Profitability. The stakehold-

ers would closely focus on Return on

Assets and Return on Shareholders’

Funds i.e., Networth. Thus, these

sub-criteria are also assigned higher

weights of 0.20. Currently, different

constituents of banks would focus at

Cost of Deposits and managing costs.

Accordingly, both these sub-criterion

are equally important and are also

assigned equal weights of 0.20.

Whereas Yield on Advances and

Return on Investments are impor-

tant, in the current interest rate sce-

nario, these sub-criteria are assigned

weights of 0.10, a notch lower in com-

parison.

Banks that are able to adapt quick-

ly to the evolving economic environ-

ment, are the ones that create most

value. The increased competition for

human and financial capital,

increased expectation on perform-

ance, improved technology platforms

demand that the human, technologi-

cal and financial resources be more

efficiently deployed and leveraged.

Therefore, Spread/Total Assets,Operating Expenses/Total Assets,

Business Per Employee, Profit Per

Employee, Non-Interest

Income/Total Assets, Profit Per

Branch are selected as sub-criteria to

measure Efficiency amongst banks

in India.

Spread/Total Assets and

Operating Expenses/Total Assets

measure Efficiency in use of

resources and these are assigned

weights of 0.25 and 0.15 respectively.

Business Per Employee and Profit

Per Employee measure utilisation of

human capital and are assigned

weights of 0.15 and 0.20 respectively.

With the objective of garnering

deposits and penetrating under

banked areas and population, Indian

banks are increasing their branch

network and accordingly profit per

branch has been considered as one

of the sub-criteria to measure

efficiency. NII reflects the abili-

ty of the bank to charge its

customers for its services

and augment the bottom line

of the bank without requiring alloca-

tion of capital and hence reflects use

of set organisation skills and net-

work. Therefore, the last two sub-cri-

teria are assigned weights of 0.15

and 0.10 respectively.

The results of the ranking are

based on financial performance of

banks during FY 2009. While some

may not concur with the aforesaid

dissertations, we believe that in the

current Indian environment, the

above ranking methodology is most

appropriate - so much so that when

stress tests were performed, the

resultant top ranking banks were

significantly the same.

Going forward, the success for the

banking industry as well as individ-

ual institutions will be predicated on

how banks will shape their strategies

to support the Indian economy

emerging from a slowdown, encom-

pass the vastly under and un-banked

regions and population and provide

the much needed financing for

Indian structure. ◆



Success will bepredicated on how banksshape their strategies tosupport the Indianeconomy emerging froma slowdown







1. Banks were categorised into public sector banks

(‘PSB’), old private sector banks (‘OPSB’), new private

sector banks (‘NPSB’) and foreign banks (‘FB’). With the

objective of making the comparison more meaningful,

banks with total assets less than Rs 5,000 crore as on

March 31, 2009 and banks that ceased to exist in India

during 2008-2009; were not considered for the rankings.

2. Financial information for the year ending March

31, 2009 relating to each of the banks falling into the

aforesaid categories was collected from the data avail-

able from the Reserve Bank of India. To ensure consis-

tency, only the published information was used.

3. Five different major criteria were identified

against which the Indian banks were to be ranked.

These criteria are: (i) Efficiency, (ii) Profitability, (iii)

Growth, (iv) Credit Quality, and (v) Strength and

Soundness. Considering the current banking, industri-

al and over-all economic scenario, pertinent weights

were assigned to each of the major criterion. The

rationale for selecting each of the criteria and assign-

ment of their respective weights is discussed in the

above-mentioned article.

4. Six sub-criterion were selected within each of the

aforesaid major criteria, which would cover the vari-

ous aspects within the aforesaid criteria. Considering

the current banking, industrial and over-all economic

scenario, pertinent weights were assigned to each of

the sub-criterion. These sub-criteria and their respec-

tive weights (in brackets) are:

(i) Efficiency (0.15)

(a) Non-Interest Income/Total Assets (0.10)

(b) Business per Employee (0.15)

(c) Profit per Branch (0.15)

(d) Operating Expenses/Total Assets (0.15)

(e) Profit per Employee (0.20)

(f) Spread/Total Assets (0.25)

(ii) Profitability (0.20)

(a) Yield on Advances (0.10)

(b) Return on Investments (0.10)

(c) Return on Assets (0.20)

(d) Cost of Deposits (0.20)

(e) Return on Networth (0.20)

(f) Cost/Income Ratio (0.20)

(iii) Growth (0.20)

(a) Total Assets Growth (0.10)

(b) Net Interest Income (‘NII’) Growth (0.10)

(c) Increase in Networth (0.10)

(d) Advances Growth (0.20)

(e) Net Profits Growth (0.20)

(f) Deposits Growth (0.30)

(iv) Credit Quality (0.20)

(a) Restructured Loans (0.10) — Introduced this year(b) NNPA/Networth (0.10)

(c) GNPA/Gross Advances (0.10)

(d) Increase in Gross Non-Performing

Assets (‘GNPA’) (0.20)

(e) Increase in GNPA/Increase in

Gross Advances (0.25)

(f) Increase in NNPA/Increase in Net

Advances (0.25)

(v) Strength and Soundness (0.25)

(a) Core Capital (0.10)

(b) Capital Adequacy (0.15)

(c) Borrowings/Deposit Ratio (0.15)

(d) Liquidity (0.20)

(e) Total Assets (0.20)

(f) Networth (0.20)

The rationale for selecting each of the sub-criteria

and assignment of their respective weights is dis-

cussed in above-mentioned article.

5. Banks were ranked, category-wise, within each of

the aforesaid sub-criteria. These sub-criteria ranks

were multiplied with sub-criteria weights and the

weighted sub-criteria ranks were carried over to each

of the major criteria. The sub-criteria ranks were then

multiplied by the major-criteria weights. The resultant

weighted major-criteria ranks were aggregated to

determine the best bank in each of the four categories

and each of the five criteria.

6. As discussed in the abovementioned article, since

all the banks, irrespective of their ownership (catego-

ry), compete in the same market place, vie for the same

customers and are faced with the same situation, it

was deemed appropriate to determine a best bank

within each of the major-criteria selected by us. Here

the same aforesaid process was followed, but the banks

were not spilt into their respective categories.

7. While ranking banks of the aforesaid 30 parame-

ters, it is found that banks with total assets of less

than Rs 5,000 crore compare favourably against larger

banks. These are primarily foreign banks that operate

in India in a very limited manner. Including these

banks often distort the results and thereby, render the

ranking less meaningful. Accordingly, banks with total

assets less than Rs 5,000 crore have been excluded.

8. Also excluded are banks that merged their opera-

tions with other banks during 2008-09, e.g., pursuant to

the merger of State Bank of Saurashtra with State Bank

of India, the parameters of the merged entity are taken

for 2009, whereas the parameters of erstwhile State Bank

of Saurashtra have been disregarded for 2009.

Team Ernst &Young: Viren H Mehta, Husain Diwan,

Tanvi Vedak, Surendrakumar Mundra, Karan Shah

and Vikas Kabra

ApproachFramework

FE-EY India’s Best Banks Survey





PUNJAB NATIONAL BANK NATIONALISED BANK RANK:1




Punjab National Bank (PNB) is fast

emerging as a global financial

powerhouse. KR Kamath , CMD, PNB

shares his views with Sitanshu

Swain and Kumud Das of the

Financial Express about the bank’s

multi-pronged strategies to achieve

rapid growth. Excerpts:

The bank has really turned

around and climbed upwards in

the last two years in its

performance. How has the bank

achieved this feat?

Government ownership and good

governance practices of Indian PSBs

have proved to be pillars of strength

in times of economic downturn.

Every crisis brings with it

opportunities.Punjab National Bank

was in the forefront to identify such

opportunities arising out of the

global slowdown and converted it into

business while supporting customers

to handle the situation with

confidence.

In addition, the bank’s

countrywide presence even deep into

remote/rural areas gives it an edge

over its peers in the form of

availability of low cost resources. The

excellent IT capabilities set up by the

bank facilitate handling of larger

volumes in an efficient way. The

sound fundamentals of the bank also

lent support to the upward movement

of the bank.

Our conservative approach and

robust risk management practices

helped us to keep our profitability

intact. The bank’s corporate

governance framework helped in

meeting aspirations of various

stakeholders in a transparent

manner. All these facilitated the

bank’s superior performance.

Do you think the fact that

private sector banks and foreign

banks were lying low during the

economic slowdown gave an

advantage to public sector banks

like you to move upward in the

business?

As I have already said, the crisis

brought opportunities as well and

PNB cashed in on those opportunities

to convert them into business,

whether in the form of additional

loans or even restructuring of some

existing portfolios. The bank was at

the centre stage of operations when

others moved away during times of

crisis and downturn. While we did

grow, it had nothing to do with the

business of the private sector and

foreign banks, since our areas of

operation are vastly different.

The fact that the bank is a

second largest PSB gives you extra

responsibility in the consolidation

space. What are your plans on this,

as the government is keen to take

the consolidation agenda forward?

There is no denying the fact that

the banks in India need to consolidate

to become bigger and stronger for a

variety of reasons.

The banks in India are very small

as compared to the global banks and

hence to become a global player,

consolidation is the only way ahead. It

would be worth mentioning that the

list of 1000 World banks compiled by

“The Banker, London” in 2009, carries

the names of only 32 Indian banks.

The biggest Indian bank (SBI) is

placed at the 76th position in terms of

assets, with $256 billion, wherein the

first rank has been bagged by Royal

Bank of Scotland with an asset size of

$3,500 billion. Thus, to be able to face

competition from foreign players,

banks would need to consolidate,

though such moves need not be

predatory alone. Rather, they could be

collaborative as well.

The country is going to witness a

dramatic increase in infrastructure

spending as per the planned

expenditure outlined in the 11th Five

Year Plan. This would require banksto enhance their capital and

strengthen their balance sheets to be

able to finance such projects and take

a larger share.

Globalisation of Indian corporates

has also put pressure on Indian banks

to globalise and have a greater

presence abroad.To offer world class

service to world class corporates and

satisfy their demands for

sophisticated products, the banks

would need to strengthen themselves

through consolidation.

A large chunk of our population

still continues to be out of the ambit

of financial services and financial

inclusion is one of the most

important steps towards inclusive

growth.

Having said that, let me also add

that we are not in a hurry. For the last

couple of years there is a healthy

debate going on, which is ironing out

the differences between various

stakeholders on this issue. However,

whenever the opportune time comes,

we will not hesitate to make the right

moves.

What is your future vision for

the bank?

The bank has envisioned

ambitious growth targets for the

period ending 2013. The bank plans to

grow its business to Rs 10 lakh crore

by 2013 and increase its customer base

to 15 crore.

PNB aspires to become a global

bank and plans to implement the best

global practices to effectively compete

in the market by providing a complete

range of financial services. The bank

would also make efforts to sustain its

leadership position amongst

nationalised banks in all domestic

operations, in financial inclusion,in

adopting best risk management

practices, in implementing global

best practice in corporate governance

and corporate social responsibility

and in HR policies. The bank also

aspires to become a universal bank,

providing a complete range of

financial services under one roof. ◆

THE FINANCIAL EXPRESS MARCH 2010 19

‘We aspires to becomea global bank’

K R KAMATH, MD&CEO, Punjab National Bank



BANK OF BARODA NATIONALISED BANK RANK:2

MD Mallya , CMD, Bank of Baroda

speaks to FE’s Sitanshu Swain &

Kumud Das about the turn around

strategies of the bank.Excerpts:

How did the bank unlock its

potential?

The bank has great potential.I

should put it on record that it is the

good work done by my predecessors

that has brought the bank to this level.

Two-three very significant changes

have been made at the bank over a

period of three to four years, which

have also contributed to a make-over

of the bank.

One is on the technology side.

Second is the brand building exercise.

The change in the entire brand has

helped us to develop strong visibility

and unlock the value of the bank.

Having a brand ambassador was itself

a concept, which was something new

to public sector banks.

What are the new initiatives you

have taken after you joined?

Among many things,we have taken

two important initiatives.Last year,

we took up a project of business

process reengineering (BPR). Having

put the technology in place, it is the

next step to ensure that you harness

the technology pattern for business

growth through improving customer

care services, which need to be

simplified.The project is known as

Project Navnirman.

The second project is known as

Baroda Next, which is being headed

by an officer in the rank of a general

manager. Basically, it is a BPR project.

This initiative was taken up by us

during the last year itself.Therefore

we started searching for a consultant

who could help us in realising this

goal.

We appointed McKinsy and the

project has already begun.

We want to change the entire

concept of work-flow at the branch.

We would like to make all our branch

outlets as marketing offices and push

all the time consuming routine work

to a centralised back office.

The idea is to ensure that people at

the bank should be able to afford

customer services in a much better

way. People at the branch will be in a

position to do marketing of products

and services.The idea is to make

business development faster which is

turn will boost productivity and

finally, improve customer service.

Hence,we have now laid down

norms on how banking should be

done at a branch.

We have identified three branches

in Mumbai, namely Bandra, Crawford

Market and Colaba and have

implemented the project in those

branches on a pilot basis.These three

branches are now working on the new

concept of customer service.

We have seen our ATM hits go up.

We have a seen substantial number of

Internet-based transactions

happening in banking.So, these

positive developments have already

taken place.We are trying to learn

from our experience at the pilot when

we roll it out across our entire

network.

What are your other agenda?

Our balance sheet size till March,

’09 was at Rs 3,37,000 crore and it is

likely to go up to Rs 4,05,000 crore by

March, ’10. We see it to be at Rs 5,00,000

crore by March, 2011. Fifteen lakh

customers will be added to our fold by

March,2011. Our whole focus is on the

liability side.Still, I am not

compromising on the quality of

assets.We are also expanding our

overseas business. This year, we are

going to recruit 3,500 people including

2,000 officers. ◆


‘The whole idea of banking is changing’

MD Mallya, CMD, Bank of Baroda






Steered by Aditya Puri , managing

director, HDFC Bank has grown at a

steady 30%. He speaks with Shobhana

Subramanianand Saikat Das of the

Financial Express about interest rates,

inflation and increasing deposit rates.

Excerpts:

How do you see the base rate

taking shape?

The base rate is not going to change

the fundamentals of banking.The

banks have been taking into account

the tenure of the loan, the risk profile of

clients and the liquidity available while

lending.The RBI is saying it wants

greater transparency than what the

BPLR provided,possibly because a lot

of lending has been done to the AAA

corporate at below the BPLR. Now, this

is a function of excess liquidity in the

market and also competition.So what

happens is that the person borrowing a

higher amount for a shorter tenure will

get a cheaper rate.The base rate has

been defined as the bank’s base cost but

that’s not the base cost of the total

deposits or of a deposit of any tenure.

So a bank is free to take the base cost of

a 90-day deposit.

Will there be a big difference

between the base rates of banks?

Normally, loans are priced either

over marginal cost or over average cost.

Both are safe. But for a new loan,banks

use the marginal rate so banks may opt

for the marginal cost. I don’t think

there will be too much of a difference

when the new system sets in, because

the basic business hasn’t changed.So

it’s possible SBI may set it at 8%, PNB

may set it at 7%.The rate will move

towards the lower side rather than the

higher side. I don’t see interest rates

moving up systemically. There might

have been a systemic shift had RBI said

that banks would have to use the

average cost of deposits to calculate the

deposit cost. As for the marginal cost,

banks may use the 90-day term deposit

or the 180-day term deposit rate.

Where do you see interest rates

headed in the next few months?

Ten-year yield go up. Whether

interest rates go up,depends on

sentiment and how much they are able

to control inflation.The government

has clearly announced a lower

borrowing programme and so one can

expect a yield of between 8-8.5% if they

meet their commitment and depending

on inflation being higher than that

towards the end of the year. Quite a bit

of the inflation is priced in the 8% and

the general expectation is that it may go

to 8.5% by June-July. Unless something

untoward happens, yields should not

go up beyond this.In fact, short- and

medium-term rates,even up to one or

two years,may not go up,since

liquidity is still in excess of Rs 70,000

crore in reverse repo, despite the hike

in the cash reserve ratio.Some amount

is there with the mutual funds as well.

Banks been raising deposit rates?

What is your view?

We haven’t raised rates across

tenures but for some shorter and some

longer tenure deposits,reflecting theincrease in rates in the system at the

long end.Even if we raise rates now,

the actual momentum comes in only

after about three months with a lag and

so by then we would have raised rates

by between 0.25 and 0.5%,which is the

kind of increase we are expecting in

overall yields, not particularly short-

term yields.

Would this increase hurt the

demand for loans?

No.The rates that you are seeing

today for autos or homes are a function

of a slowing economy and excess

liquidity. Car loans were at 9-9.5%,so if

they move up back there, it’s not the

end of the world. It’s hard to see a year

ahead in today’s environment but we

don’t see any big move in interest rates.

We need to see what happens on

liquidity, inflation,private demand and


HDFC BANK NEW PRIVATE SECTOR BANK RANK: 1 STRENGTH RANK: 1 GROWTH RANK:1

‘We are a delta on theIndian economy’

Aditya Puri , MD&CEO, HDFC Bank



23THE FINANCIAL EXPRESS MARCH 2010

the GDP. We are seeing some pick-up in

corporate borrowing but not a runaway

pick up.This pick up is for working

capital.Drawdowns on investment

have not happened. Companies saythey are moving ahead on capex but we

have to see greater evidence of it. Retail

demand for the system as a whole

hasn’t been great but we are

experiencing good demand.If

production of cars increases by 30%,

demand for car loans will also

increase. Actually, the demand for

home loans never faltered.If

GDP grows by 8%, credit de-

mand can grow by about

20% next year. HDFC Bank

normally grows faster

than the system.

What is the bank’s

immediate term

strategy for growth?

We have just doubled our

capacity and right now don’t

need to look further. We just

doubled our distribution

network from 725 to1,720 branches.Our

business model is different,it’s based

on branches and that’s why we are

comfortable with retail loans and our

cost of funds.Not only is our CASAhigh, around 60% of our personal loans

are sold through branches,and 70% of

our cards are sold to our customers

through branches as well.They are an

integral part of our strategy.

HDFC Bank has an

enviable CASA

ratio of 52%.Is this sustainable?

No,it’s not sustainable. The reason

we have 52% CASA is because deposits

have been growing slowly, so there’s the

denominator effect and once growthpicks up we will need to borrow more

fixed deposits.I would say our normal

range for CASA is between 45 and 48%.

Our asset growth is a function of GDP

growth,so if GDP grows at 8%,the

market will grow at 22-23% and we’ll

grow by 2-3 % more than that.

Is the bank looking for an

international presence?

Our international business is based

on our strengths in India. We have

correspondent arrangements with

people all over the Middle East and

other parts of the world and are major

players in NRI remittances. Essentially,

we are a delta on the Indian economy. ◆




AXIS BANK NEW PRIVATE SECTOR BANK RANK: 2



It’s about a year since Shikha

Sharma took over the reins at Axis

Bank. In conversation withShobhana

Subramanian , the MD and CEO

observes that while new banking

licences will help grow the market and

benefit customers, much would also

depend on the kind of players who

come in. Excerpts:

What are your thoughts on the

base rate?

What the Reserve Bank is trying to

do is to bring in more transparency

and one of their concerns is that

policy rates are not being transmitted

to all lenders.So that’s the attempt.

I think as opposed to the PLR,when

there were huge differences,which

got narrowed out through discounts

below the PLR now, because you

cannot lend below the base rate, I

suspect there will be a

narrowing.So definitely base rates

will be in a more narrow range but

there will be differences based on

banks’ strategies. I think an

assessment of where the base rates

can settle will have to be decided

closer to the date of implementation

in July.

Do you think banks will choose the

marginal cost or a weighted

average cost to fix the base rate?

It might be difficult for a bank to fix

the base rate based on the basis of

weighted average cost because it may

already have assets, which are locked

in based on the historical cost of

funds.So the marginal cost has to

have higher weightage while setting

the base rate. Especially if the bank

has relatively well-matched assets and

liabilities, then the future is

determined more by the marginal

cost.If there are some mismatches

between the assets and liabilities,

then perhaps the strategy may be

somewhat mixed.

The government plans to give new

licences.Do you think that’s a good

idea?

Competition is always good for the

customer but it also depends on the

kind of competition. The regulator

should ensure that there is a level-

playing field between the old and the

new in terms of regulatory

commitments. It depends on what

kind of players come into the market;

if we have players who have a track

record and the desire to build a long-

term high quality banking business, it

will be good for the market because it

will inevitably grow the market.The

good thing about being in India is that

we are in a high growth phase, so

anything that taps that opportunity

and expands the market is good. But,

as I said, nothing is absolute. It all

depends on the kind of players who

come in.

How does Axis Bank plan to tap the

prosperity in the rural markets?Compared to our peers, Axis Bank

has more of a presence in the tier II

and tier III towns.So we do have some

learnings,which we can use going

into rural areas,but we don’t really

have a full-fledged model to take to the

rural markets just now. With

regulatory changes that have

happened and mobile technology

becoming more mature,I think it is

today possible to come up with an

appropriate model for the rural

market.

There are of course policy

initiatives being taken to have more

financial inclusion but, if you look at

the economy, a lot of real industry is

finding that their growth is coming

from rural markets. So the rural

markets are definitely the markets of

the future.So it’s something that we

are focussed on and we will

experiment with a couple of models.

How do you see the role of banks in

infrastructure financing?

We are a significant player in this

space.Nobody has any doubt that

India will see strong growth in

infrastructure,and if we are banks

sitting in India,we have to grow

where growth is going to come from.

So if infrastructure is going to grow

faster than GDP, then we have to be

open to lending to the sector, I think

there is no a choice.

Axis Bank has strengths in this

area,so if it’s a high opportunity area

and we have strengths,we are not at

all embarrassed about going there.

The question is how do you manage

both, concentration risk and interest

rate risk? One thing we do is to lend to

multiple projects across geographies

and sectors.

Also, much of the lending is done at

a floating rate. So while they are of a

long tenure, we don’t have a pricing

mismatch issue, the loans get re-

priced. The valid question is that it

could get translated into a credit risk

because of the floating rate.That’s

something we take of when we do the

appraisal. ◆


‘Competition is alwaysgood for the customer’

Shikha Sharma, MD&CEO, Axis Bank




FEDERAL BANK OLD PRIVATE SECTOR BANK RANK: 1



South India basedFederal

Bank has had a consistent

track record of growth

and profitability. Being a

focussed bank, it has stuck to

its strengths. The bank now

wants to expand its operational

scope greogrpahically and also

through product development.

M Venugopalan , chairman,Federal

Bank speaks with Saikat Das and

Akash Joshi of the Financial Express

about financial inclusion,the

banks efforts towards reaching out

and imparting financial education.

Excerpts:

In line with increased government

focus on financial inclusion, what

efforts are you moving on that

front?

Our bank has currently 676

branches across the nation. In Kerala

itself, it has 391 branches,of which,

40% are in rural areas.All branches

are connected under the core banking

system. The bank has currently 724

ATMs and has issued 2,910 general

credit cards,with a balance of Rs

577.59 lakh till December 31, 2009.

We have been trying for the

integrated development of villages. In

the last calendar year, we developed 10

villages.In the current year, we have

taken up 15 villages till March.The

adoption of villages has been done

under the Samrudhi scheme.We help

them plan activities beneficial to the

holistic development of villages. In

Kerala,every family is covered by a

bank account.

Could you tell us about the

Samrudhi scheme?

‘Samrudhi’ is a unique

programme aimed at fulfilling the

entire banking needs of the residents

of a Grama Panchayat by making

available the entire range of banking

products or services offered by the

bank. This is so that these villages

can be developed into model Grama

Panchayats through the business

facilitator model in association with

Kudumbashree (Kerala State Poverty

Eradication Mission) Community

Development Societies and reputed

NGOs.

The scope of Samrudhi was

enhanced recently through the

Samrudhi Financial Management

Program (SFMP).It aims to help

improve the financial self-reliance

and well being of villages,

individuals, families and

communities. The social scheme

provides disadvantaged villages,

individuals, families and

communities who are financially

vulnerable or at risk of becoming

financially vulnerable,with the tools

and resources to manage a financial

crisis and overcome hardship.

How do you propose to use IT in

financial inclusion?

Our credit card products are IT

enabled.Kisan Credit Card (KCC)

accounts are ATM enabled with the

‘Federal Haritha Card’. The General

Credit Card (GCC) is also ATM

enabled.The bank is in the process of

introducing the ICT-based banking

correspondent model in the Alleppey

District of Kerala.We are planning to

introduce certain new products on

mobile banking as well in the near

term.

What are the initiatives you have

undertaken towards imparting

financial education?

We have launched a trust

christened "Federal Ashwas" for the

establishment and running of "Federal Ashwas Financial Literacy

and Credit Counselling Centres"

(FAFLCC) and three FAFLCC centres

have already started functioning in

the Alleppey District.

We are in the process of

establishing the ‘Federal Bank -

YMCA Training and Guidance

Centre’ in the Wynad district,Kerala,

in association with the YMCA.This

facility will be used by the bank to

provide training to micro and small

entrepreneurs.

What credit growth are you

currently registering?

In the last 10 months during the

current fiscal,Federal Bank attained

a credit growth of 21% (including the

segments of SME,retail and

corporate) surpassing Reserve Bank’s

targeted credit growth of 16%.Our

bank expects to attain a credit growth

of 23% by March 31.

What business expansion plans do

you have?

As per the proposed branch

expansion policy, we aim to open

around 60 more branches all over

India in FY 2010-11.

The bank, which has only a

representative office in Abu Dhabi,

has plans to go global.It might be

seeking regulatory permissions in the

middle term for the same. However,

we are yet to take any concrete

decision on this. Further, we are open

to any potential acquisition at a

reasonable price. It is high time the

Indian banking industry go in for

consolidation.

What are your future goals?

We have a set of three-pronged

objectives. Firstly, we want to be

identified for niche products like SME

banking.

Secondly, we want to be Kerala’s

Number 1 bank,surpassing the State

Bank of Travancore, and finally, we

want to emerge as a prominent lender

in the industry for the common

people. ◆


‘We want to emerge asa prominent lender to the common man’

M VENUGOPALAN, Chairman, Federal Bank







TAMILNAD MERCANTILE BANK OLD PRIVATE SECTOR BANK RANK:2




G Nagamal Reddy , MD & CEO,

Tamilnad Mercantile Bank speaks

with Sajan Kumar of the Financial

Expressabout being a small bank with

more regional flavour, where TMB

stands in the changing atmosphere, the

controversy over the ownership issue of

the bank and other things. Excerpts:

Being a small bank with a more

regional flavour, what kind of

business focus do you have in

terms of retail and corporate?

Small-sized banks contribute

significantly to the total market share

of scheduled commercial banks. Our

regional presence and sense of

belonging have given us a prime

position.

TMB is concentrating on building

safer and more remunerative assets.

Our strategy is to focus on corporate

and retail business,which would fetch

a mix of quality and high yielding

assets.Our incremental CD ratio over

March 2009 works out to 136%, which

shows our aggressive growth in

advances. Plans are on to open

specialised branches at metros to take

focussed care of the credit

requirements of corporate

establishments. The bank already has

a lending portfolio of 37% to

corporate credit.The bank has

already built a retail asset portfolio of

63%. The bank has 24 retail schemes

in the market and four or five

schemes, including home,education,

car and SME credit.

In the retail segment, the bank

finds huge opportunities and the

delinquency rate is considerably less

due to its cautious approach.We

believe that through identifying

credit-worthy retail proposals, the

bank can expand its retail credit

without being aggressive.The bank

identified retail as one of the strategic

areas for growth. The speed in

delivering corporate and retail credit

is another areas the bank has planned

to concentrate on.The bank has also

entered into a MoU with CRISIL for

rating SME borrowers.

How are you planning to improve

your net interest margins?

The bank witnessed a net interest

margin of 3.55% as on February 28,

2010, which is due to the increased

focus on building low cost liabilities

and high yielding assets in SME and

retail sectors.

CASA has improved by 19% when

compared to the previous year ended

March 31,2009. The credit to the retail

sector has also grown by 24%.The net

profit of the bank has improved by

16% up to February 2010. The full

results of various initiatives are

expected to reflect in the bank’s

current year balance sheet.

How difficult is for you to raise low

cost deposits since you don’t have

much of a branch network?

As the spread started thinning

from 3.53% in the year 2008 to 3.37% in

the year 2009,the bank decided to

improve the CASA component, which

will help in bringing down the cost of

deposits.The necessity of enhancing

the CASA deposits to improve the

bottom line of the bank percolated

down to the people in the branch level

and permeated the organisation.

CASA has become the mantra of the

bank. As the bank has 216 branches

across the country, the mantra of

CASA was echoed in 12 states and in

the hearts of 2,250 TMBians. As a

result,the bank was able to mobilise

Rs 402 crore of CASA deposits,an

increase of 19% growth over March

2009,which works out to 24% of the

total deposits with the existing

branch network.

During the next fiscal we would

also provide special focus for CASA by

giving specific targets to rural and

semi urban branches to canvass SBdeposits aggressively, whereas metro

and urban branches would be urged to

concentrate on current accounts.

Corporates would be approached for

canvassing salaried accounts with a

bouquet of services leveraging the

fullest use of technology:anywhere

banking,RTGS, NEFT, debit card, net

banking, e-payment etc.

How is the year shaping up?

A thorough understanding of the

prevailing market and customers’

changing requirements, expectations

and the efforts taken by employees at

all levels to meet the expectations of

customers,as well as the preparation

to expand the revenue streams for

sustainable growth,would work well

for building a new brand image and

health for the bank.

The various initiatives taken by the

bank to improve the fee-based income

will boost the bottom line of the bank

in the current year. Due to the focus on

building a higher level of efficiency

and strengthening the margin by

cutting the proportion of high cost

deposits and the size of low yielding

assets, the bank added 1,86,000 new

customers.The bank is harnessing its

strength of technology. Customers

expect a major change in our bank

both in terms of capital structure and

services,

Has the controversy over the

ownership issue been settled?

Since the new board is in place and

the pending AGMs for the years 2008-

2009 have also been held, I feel that the

ownership issue is resolved by the

competent court. With enhancement

in the level of corporate governance

after holding the AGMs and stability

in its operations and consistency in

earnings, the bank will be able to

provide better value addition to its

stake holders.

Efforts will be made to make the

bank more dynamic, in the sense that

it will be adjudged not only as the best

bank but also the fastest growing

bank under each parameter. ◆


‘Small-sized banks play a significant role’

G Nagamal Reddy, MD&CEO, Tamilnad Mercantile Bank




JP MORGAN CHASE FOREIGN BANK RANK:1 EFFICIENCY RANK:1



In India, JP Morgan runs various

businesses like providing companies

with cash management services, trade

finance and custody services,

investment banking,helping

companies raise debt and equity.

Speaking with Mahalakshmi

Hariharan from The Financial

Express , Kalpana Morparia , CEO,

JP Morgan says the bank intends to

stay within its niche segment rather

than try to compete with its larger peers

who are retail-focussed. Excerpts:

Which are the businesses that you

would like to focus on in India?

In India, we run the investment

banking division, asset management

and wealth management business and

treasury securities and services.

Within the treasury securities and

services,it is normally transaction

banking and custody, giving a

platform to corporates and investors

for cash management, trade finance

and custody business. Investment

banking comprises of the markets

business, constituting fixed income

and commodities.This includes

proprietary trading,client flows,

forex flows and forex derivatives,

followed by the equity institutional

broking business. These are a part of

our markets related businesses. Then,

we have a small principle investment

business where we commit JP

Morgan’s capital to take positions in

equity, hybrid and high yield debt for

Indian companies.We also have a

large corporate finance and

coverage business, which

covers equity capital

markets (ECM),

derivatives

collateral

management (DCM) and mergers and

acquisitions (M&A).We have the

global corporate bank,which is a joint

venture between investment banking

and transaction banking.

What does your client base look

like? Which are the products and

services that you cater to?

On the corporate side there are

multi-national corporations (MNCs)

operating in India. The small

corporate businesses have affiliates

and subsidiaries in India,who need

coverage for cash management to

remittances, sometimes even to credit

on the back of their parent support. If

you think about several large

companies that have their

subsidiaries here, we would be the

typical banker that would cover them.

The second part is Indian companies

that are increasingly globalising.This

is because they are in constant need of

acquisition financing, funding for

their overseas businesses, managing

cash across geographies and across

trade finance and currencies.So, on

the transaction banking side, there is

cash management and trade finance

across the board.

The third set of clients are what I

call ‘local local’.There may not be a

big cross border angle to it but the

reason why we would cover them and

would give them transaction banking

and credit is because we see we can

add a lot of value to them on a purely

corporate finance side. When they

want to raise capital or do an M&A

transaction,we would help them out.

On the investor side,we deal a lot with

all the major funds. We have a

relationship with a lot of fund houses

that are investing across the globe.We

cover them through our

custodian business

and the

institutional broking business.So, we

have a dedicated sales force, which not

only covers Indian funds that are

dedicated to investing in India or

emerging markets that are investingin India but also global funds who can

invest in India but don’t necessarily

have a dedicated vehicle to access

notes or eventually a registration

with the Securities and Exchange

Board of India (Sebi).

Are you looking at entering the

retail space?

We believe that retail banking is

something that you can cover out of

mass banking. We believe that Indian

banks have a very unique proposition

to deal with the customers in

managing deposits,mortgages,auto

credit and also understanding the

customer. The kind of distribution

that they have and their ability to

build a great recovery mechanism is

also something very unique.Thus,we

feel that they will always be superior

to foreign banks.The only thing we

think that we can really capture in the

retail space is remittances coming

from the US into India and to that

extent we may look at having a retail

deposit taking franchise if my branch

license approval allows me to do so.

We will be a niche player in this

segment. Retail credit is not

something we are looking at.

What are your hiring plans?

We have two sets of employees in

the bank-one is the business, which is

less than 500 people and I don’t see

that growing beyond a little over that

number. The other is off-shoring,

where we will continue hiring.

What is your share in the market?

We track our market share across

all our businesses. In some of the

transaction banking business and

DCM businesses that we do, we look at

the market share in context with

foreign players.

Last year, we were the number one

player across the ECM business.In

the institutional broking business, we

were in the top four. In the M&A space,

not too many deals happened last year,

but we believe we would have been in

the top two or three. ◆


‘We will cater witha suite of services’

KALPANA MORPARIA, CEO, JP Morgan



In the recent past, Citibank India

has managed to tide over the global

financial crisis and build a strong

business in India and has also

participated in several landmark

deals. Speaking with Shobhana

Subramanianand Mahalakshmi

Hariharanof the Financial Express,

Mark T Robinson , CEO, Citi reveals

his plans for the future. Excerpts:

How has the year 2009 been for the

bank? What will Citi focus on in

2010?

I would characterise 2009 as a year

where we repositioned our businesses

to capture the opportunities

presented by the growing Indian

economy in the years ahead. We drew

up a strategic plan with an emphasis

on the sectors where we saw our

natural strengths. Our businesses are

fit to be executed with our expansion

plans. Much of this is consistent with

whatever is happening in Citi globally.

We will be growing our securities and

banking business and transaction

banking business in the Institutional

Clients Group.

We consider the local commercial

bank catering to the middle market

segment as a key to our future growth,

as also the retail consumer bank,

where we are focussing on a well-

calibrated growth strategy, including

liabilities and asset products.

We continue to provide a stronger

customer-centric value proposition to

our retail wealth management and

credit cards businesses, including

investing in world-class technology

platforms.

What will your strategy be in the

corporate and retail lending

spaces?

We allocate capital based on a

careful evaluation of overall returns

on a risk and to this end we review the

returns from our asset products and

the cross-sell it generates at a firm

level.Our retail and corporate lending

strategies are driven by this approach.

Even during the peak of the global

credit crisis we were open for

business and continued to grow assets

judiciously in our target segments.

We will continue to meet the needs

of our corporate clients through a

combination of balance sheet items

and innovative structures.

On the retail banking front,we

follow the principles of prudent

lending and providing value added

and innovative cards and asset

products to our customers. Our stated

objective is to be the industry-leading

premium,high quality, efficient

banking franchise.

By how much are you looking to

grow your balance sheet?

We are committed to growing our

corporate relationships and

supporting their funding

requirements on balance sheet

lending as well as other forms of

capital raising.We remain focussed

on our key target consumer markets

with products and services that bring

value to our retail customers.We

continue to go slow on unsecured

retail credit,including credit cards in

non-target segments.

Will capital be a constraint for

growth? What would be the share

of CASA in your deposits and the

cost of funds?

Capital has never been a constraint

to our growth in India. Over the last

few years we have consistently

retained our earnings and infused

close to $1.8 billion of capital in the

franchise between the bank and other

legal vehicles. In addition to the

capital that we deploy in our banking

business,we are committed to

substantial capital for proprietary

investments.We are amongst the best

capitalised banks in the industry as

indeed are our non-bank finance

companies.With respect to the cost of funds, we

have rigorous parameters for

structural liquidity and lay a lot of

emphasis on CASA and other non-

interest bearing sources. These come

to us through our transaction banking

business and the consumer business

and we deploy this liquidity with a

judicious modelling of cost criteria to

manage our balance sheet risk.

Which are the areas that you are

actively lending to? What’s your

share in the secured and

unsecured segments?

It is very difficult to provide you

with an accurate assessment of

market share in the secured and

unsecured segment.However, we are

seeing a steady shift to secured

lending in our consumer portfolio,

whereas in the corporate portfolio,

lending is based on a careful

evaluation of collateral, cash flows,

obligor quality and other criteria.

Your views on growth and interest

rates and the base rate system? Do

you anticipate rate hikes in the

near future?

I feel that the recent budget has

provided a very balanced approach to

growth while providing for a steady

withdrawal of the stimulus packages.

The Reserve Bank of India is faced

with a situation where growth is

accelerating, as is inflation.I think

RBI will continue to display the

balance it always has in adjusting

these monetary instruments to

maintain the right balance. I do expect

that in the short term there could be

modest hikes in the reference rates

but the flow of credit to the economy

will be satisfactory.

The base rate is an interesting

development and should contribute to

transparency of lending rates to

various customer segments of an

individual bank in line with their

credit and other characteristics, while

market forces work towards a

convergence of base rates across

banks. ◆


CITI FOREIGN BANK RANK:2 PROFITABILITY RANK: 1

‘We wish to be anefficient franchise’

MARK T ROBINSON, CEO, Citi






INDUSIND BANK CREDIT QUALITY RANK:1




Romesh Sobti , MD & CEO, Indus-

Ind Bank, speaks with Saikat Das of

the Financial Express regarding the

bank’s growth, its risk management

practices and its hiring plans,among

other things.Excerpts:

What kind of growth have you

witnessed in your business?

We have a total balance sheet of

Rs 33,000 crore, wherein advances are

Rs 19,000 crore. We will probably end

up with a 27-28% loan growth by

March,2010. We are expecting a credit

growth of 25-30% in FY2011.Our

credit growth will be evenly

distributed across corporate and

consumer lending,including vehicle

financing. While 60% of our loan book

is corporate, 40% is retail.Under the

retail part, we finance 40,000 vehicles

every month, including two/three

wheelers, commercial vehicles and

off-the-road construction vehicles.

We have a wide distribution

network and inherited this structure

from the merger of Ashok Leyland

Finance. We are small in the home and

commercial vehicle segments.

How focussed is the bank on risk

management practices?

All areas of risks, including credit

risk, operational risk and market risk

must be well-managed. The growth

under IndusInd comes under the risk

management umbrella.

You must have the infrastructure to

manage risks and to support your

growth.

I have seen many financial

Tsunamis like this in my 35-year

career. The lessons from this boils

down to the fact that if you are

running a growth organisation, first

put up the risk management pillars:

market risk and operational risk.Risk

management has to be harsh.

Are you expanding your branch

network?

We have plans to open 120-150 more

branches by March, 2011 adding to our

existing 210 branches across India.

For half of these new branches we

don’t need RBI’s approval. The latest

regulations have given banks the

freedom to open branches in the tier

III and tier IV centres with population

below 50,000 without seeking

permission from the Central Bank.

We are focussed on the north, west

and south. We have a presence in the

North East as well.

Are operations in remote places

profitable?

It can be profitable. If you treat

financial inclusion as an obligation to

be met at the end of the year, then it is

a loss making proposition.But if you

work on it through out the year as a

business plan,it can be profitable.

Financial inclusion, unless it is

embedded in business, is a loss-

making proposition.We are strong in

the area of micro financing.We give a

lot of three wheeler loans in rural

areas.We provide loans to village

women through micro-financing

schemes. We have zero delinquencies.

What are the bank’s hiring plans?

We have always remained robust in

hiring. In 2008-09,we hired 1,500

people.In 2009-2010,we hired 900

people.By the end of the next fiscal,

we plan to hire 700 people for branch

banking and 900 in the area of

consumer banking (sales operations

and risk management).

Most of our hiring is done through

"Indus Parichay" (our own

recruitment scheme), employee

reference programme and through

head hunters,which constituted 12%

of total recruitment the last time.

For our consumer banking we will

hire more. We call it ‘feet on street’,

under which we recruit sales people.◆


‘Financial inclusionplans are profitable’

Romesh Sobti, MD&CEO, IndusInd Bank



Punjab National Bank

Bank of Baroda

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Bank of India

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Canara Bank

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Best Nationalised Banks1

5

24

10

9

12

11

3

6.5

22

16

14

17

18

25

8

21

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6.5

26

24

23

27

13

19

1

4

6

2

5

3

1

5

6

9

3

8

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2.5

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36.5

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21

13

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6.5

18

15

27

17

9

1122

26

25

16

20

19

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23

2

1

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4.5

2

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1

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11

5

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4

6

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9

3

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18

19

2116

26

24

17

25

22

27

23

4

3

1

2

6

5

1

5

4

3

2

8

7

6

13

9

10

12

11

2

4

1

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11

8

3

7

10

6

5

12

1.5

4

56

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22

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1.5

26

24

8

9

27

10

19

13

17

21

1814

11

7

16

15

12

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23

4

3

2

6

1

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1

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3

11

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101112131415161718

192021222324252627

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10111213

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101112

Strength & Soundness Growth Profitability Efficiency

CreditQuality

Final Rank 2009Name

THE FINANCIAL EXPRESS | MARCH 201038

Best New Private Sector Banks

Best Old Private Sector Banks

Best Foreign Banks

SEGMENT-WISE LEADERS





HDFC Bank


Barclays Bank

Indian Bank

Corporation Bank

ICICI Bank

Federal Bank

State Bank of India



HSBC

Citi

Bank of Baroda

Canara Bank

Kotak Mahindra Bank


Allahabad BankBank of India


Union Bank of India


Deutsche Bank

South Indian Bank

Axis Bank


Karur Vysya Bank

Karnataka Bank


Dhanalakshmi Bank


State Bank of Bikaner & Jaipur

Syndicate Bank


Andhra Bank


DBS Bank

Vijaya Bank

Bank of America

City Union Bank

YES Bank

State Bank of Patiala

Punjab & Sind Bank

Dena Bank


UCO Bank

Bank of MaharashtraIndusind Bank



Bank of Rajasthan

IDBI Bank


Lakshmi Vilas Bank

Bank of Nova Scotia

BNP Paribas

Caylon Bank

ING Vysya Bank

ABN Amro Bank

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

1718

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35.5

35.5

37

38

39.5

39.5

41

42

43

44

45

4647

48.5

48.5

50

51

52

53

54

55

56

57

58


HDFC Bank

Barclays Bank

Axis Bank

Dhanalakshmi Bank

State Bank of India

Bank of Baroda

Union Bank of India

IDBI Bank

Bank of India


Lakshmi Vilas Bank

YES Bank


Punjab & Sind Bank

Canara Bank

Corporation Bank

UCO BankDena Bank

Federal Bank

City Union Bank

Indian Bank

DBS Bank


Indusind Bank



Syndicate Bank


Andhra Bank

ING Vysya Bank

Bank of Maharashtra

South Indian Bank


BNP Paribas


Citi






Allahabad Bank

HSBC

Karur Vysya Bank


Bank of Nova ScotiaJammu & Kashmir Bank

Caylon Bank

Vijaya Bank

Karnataka Bank

Deutsche Bank


Bank of America

Bank of Rajasthan

Kotak Mahindra Bank

ICICI Bank

ABN Amro Bank


1

2

3

4

5

6

7

8

9

10.5

10.5

12

13

14

15

16

1718

19

20

21

22

23

24

25

26

27.5

27.5

29

30.5

30.5

32

33

34

35

36

37

38.5

38.5

40

41

42

43.5

43.5

45

4647

48

49

50

51

52

53

54

55

56

57

58

Citi


HSBC


Bank of India

Caylon Bank


DBS Bank

Indian Bank

Bank of America

Deutsche Bank

BNP Paribas

Axis Bank

Union Bank of India


YES Bank

HDFC BankCorporation Bank

Bank of Nova Scotia

City Union Bank



Federal Bank

Dena Bank

Bank of Baroda


Karur Vysya Bank

Andhra Bank

State Bank of Bikaner & Jai

Punjab & Sind Bank

State Bank of India


Canara Bank


Karnataka Bank

Syndicate Bank

ABN Amro Bank

Allahabad Bank

South Indian Bank

Dhanalakshmi Bank

Bank of Maharashtra


Barclays Bank


ICICI Bank

Kotak Mahindra BankState Bank of Patiala

ING Vysya Bank

Bank of Rajasthan

Vijaya Bank


Lakshmi Vilas Bank

UCO Bank



Indusind Bank


IDBI Bank

Strength and SoundnessRank

Name 2009

GrowthRank

Name 2009

Profitability

Name

TOPPERS OF THE FIVE KEY PARAMETERS




1

2

3

4

5

7

7

7

9

10

11

12

13

14

15

16

1718

19

20

21

22

23

24

25.5

25.5

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42.5

42.5

44

45

4647

48

49

50

51

52

53

54

55

56

57

58


Bank of America

Caylon Bank

DBS Bank

Bank of Nova Scotia

Citi

Deutsche Bank

BNP Paribas

HSBC


Federal Bank

Axis Bank

Bank of India

YES Bank

Corporation Bank

Barclays Bank

ICICI BankIDBI

Indian Bank


Bank of Baroda

Karur Vysya Bank

Union Bank of India




City Union Bank


ABN Amro Bank

HDFC Bank


Canara Bank

Punjab & Sind Bank


Andhra Bank

Kotak Mahindra Bank

State Bank of India

Karnataka Bank



South Indian Bank

Allahabad Bank

Dena Bank

Indusind Bank

Syndicate Bank

State Bank of Bikaner & JaipurDhanalakshmi Bank


Vijaya Bank

UCO Bank

ING Vysya Bank


Bank of Maharashtra



Bank of Rajasthan

Lakshmi Vilas Bank


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

1718

19.5

19.5

21

22

23

24

25

26

27

28.5

28.5

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

4647

48

49

50

51

52

53

54

55

56

57

58

Indusind Bank

Bank of Nova Scotia



Bank of Baroda


Indian Bank

Corporation Bank



Andhra Bank

UCO Bank

Syndicate Bank

Punjab & Sind Bank

Caylon Bank


Bank of AmericaDhanalakshmi Bank


IDBI Bank

Karur Vysya Bank

Lakshmi Vilas Bank

YES Bank


Bank of Maharashtra

Allahabad Bank

DBS Bank

City Union Bank

Axis Bank

ING Vysya Bank



Federal Bank

Bank of India


Dena Bank

Union Bank of India

HDFC Bank

Karnataka Bank

Bank of Rajasthan

Vijaya Bank

South Indian Bank

BNP Paribas


Canara Bank

Standard Chartered BankCatholic Syrian Bank


Kotak Mahindra Bank

State Bank of India

Deutsche Bank

HSBC


Barclays Bank

Citi


ABN Amro Bank

ICICI Bank

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

1718

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

4647

48

49

50

51

52

53

54

55

56

57

58

Rank 2009

EfficiencyRank

Name 2009

Credit & QualityRank

Name 2009




Indian Bank

State Bank of IndiaCorporation Bank

Bank of Baroda

Canara Bank


Allahabad Bank

Union Bank of India

Bank of India






Andhra Bank

Syndicate Bank


Vijaya BankState Bank of Patiala

Dena Bank

Punjab & Sind Bank

Bank of Maharashtra


IDBI Bank

UCO Bank


HDFC Bank

ICICI Bank

Kotak Mahindra Bank

Axis Bank

Indusind Bank

YES Bank

Federal Bank

South Indian Bank


Karnataka Bank


Karur Vysya Bank

Bank of Rajasthan

Dhanalakshmi Bank

City Union Bank


ING Vysya Bank

Lakshmi Vilas Bank


Barclays Bank

Citi

HSBC

Deutsche Bank


Bank of America

DBS Bank


BNP Paribas

ABN Amro Bank

Bank of Nova Scotia

Caylon Bank

14.03

13.98

14.2513.61

14.05

14.10

13.12

13.11

13.27

13.01

12.98

14.03

13.28

13.20

14.52

13.22

12.68

11.53

13.1512.60

12.07

14.35

12.05

13.46

11.57

11.93

13.38

15.69

15.53

20.01

13.69

12.33

16.60

20.22

14.76

14.48

13.48

16.10

14.92

11.50

15.38

12.69

12.29

11.65

10.29

13.30

17.07

13.23

15.31

15.25

11.55

12.73

15.70

15.90

12.37

12.66

13.38

13.20



Best Foreign Banks


Capital Adequacy

%

6.58

3954

1718131920

6.512151

142127

1622232

2410262511

34156

2

156724

1239

1011138

1745

12932

111068

Ranks

8.98

11.88

9.388.90

8.49

8.01

6.97

8.01

8.19

8.91

9.10

8.59

7.56

7.88

8.46

8.67

7.85

7.14

7.746.94

6.76

8.44

6.11

7.91

6.81

6.48

7.37

10.58

11.84

16.13

9.26

7.52

9.50

18.42

13.22

13.80

10.60

15.38

14.40

6.19

13.75

11.48

8.81

6.89

8.81

11.50

16.62

12.42

14.12

14.62

7.99

11.23

10.27

15.38

8.38

7.43

10.42

9.80

CoreCapital

%

41

269

14221312

538

191610

71721

182325112715242620

32156

4

164923

1358

10.512

10.57

1543

11682

1012

79

Ranks

(1,125,013)

(727,821)

(8,667,250)(95,199)

(4,069,497)

(1,795,288)

(656,504)

(447,020)

(1,147,456)

(2,417,920)

(3,351,816)

589,507

393,839

(1,544,687)

(778,361)

(1,479,751)

(2,919,323)

(158,981)

(2,363,560)(1,032,900)

(512,190)

(851,198)

(914,269)

(446,100)

(4,472,410)

(2,434,730)

(326,585)

3,084,372

(6,928,887)

(109,579)

(2,724,561)

279,151

(685,138)

(675,537)

59,195

(213,932)

(207,506)

(131,748)

(293,838)

105,955

(113,251)

(152,497)

39,729

(347,057)

(78,067)

(122,583)

391,562

(281,650)

(1,071,858)

(169,607)

(174,146)

179,800

1,708

(175,827)

105,970

(811,801)

70,612

24,983

LiquidityRs Lakhs

1510

273

2519

97

162124

12

18111723

4

2014

81213

62622

5

16352

4

132

1097

111583

1246

11012

782693

1145

Ranks

Best Nationalised Banks

NameRank 2009

12

345

6.56.5

89

101112131415161718

192021222324252627

12345

6

123456789

10111213

12.52.5

456789

101112

CATEGORY STRENGTH & SOUNDNESS



2.09

0.73

7.242.80

2.93

3.78

0.61

1.10

2.80

5.00

0.73

1.92

0.84

6.54

2.00

2.21

1.89

3.79

1.141.51

0.12

7.82

0.36

3.19

39.52

2.06

8.39

1.88

30.83

37.74

8.68

8.40

13.54

2.33

1.42

3.02

0.02

0.34

0.15

0.01

-

-

-

8.65

0.44

7.44

18.67

35.93

16.55

25.45

15.84

51.86

41.46

96.10

84.82

59.16

102.31

523.98

BorrowingDeposit

%


12

3456.56.589101112131415161718

192021222324252627

12345

6

12345678910111213

12.52.5456789101112


Indian Bank

State Bank of IndiaCorporation Bank

Bank of Baroda

Canara Bank


Allahabad Bank

Union Bank of India

Bank of India






Andhra Bank

Syndicate Bank


Vijaya BankState Bank of Patiala

Dena Bank

Punjab & Sind Bank

Bank of Maharashtra


IDBI Bank

UCO Bank


HDFC Bank

ICICI Bank

Kotak Mahindra Bank

Axis Bank

Indusind Bank

YES Bank

Federal Bank

South Indian Bank


Karnataka Bank


Karur Vysya Bank

Bank of Rajasthan

Dhanalakshmi Bank

City Union Bank


ING Vysya Bank

Lakshmi Vilas Bank


Barclays Bank

Citi

HSBC

Deutsche Bank


Bank of America

DBS Bank


BNP Paribas

ABN Amro Bank

Bank of Nova Scotia

Caylon Bank

Ranks2009Name

144.5

2416.5

182037

16.522

4.5116

2312151021

891

252

19271326

15632

4

109

115764222

138

12

3524176

1098

1112

Ranks

24,691,862

8,412,175

96,443,2088,690,581

22,740,673

21,964,580

14,765,522

9,764,801

16,097,551

22,550,177

11,258,259

4,946,051

6,204,071

12,107,340

4,637,020

6,846,921

13,025,567

7,672,189

6,238,2606,966,544

4,846,051

4,136,379

5,903,035

3,307,589

17,240,232

11,166,417

4,048,579

18,327,077

37,930,096

2,871,187

14,772,205

2,761,468

2,290,079

3,885,086

2,038,352

3,769,326

2,285,781

1,094,329

1,706,074

1,722,440

564,282

925,101

704,008

3,185,699

831,725

594,302

2,068,863

10,526,359

9,462,039

2,495,487

9,749,216

984,535

1,256,459

1,053,123

982,799

3,208,255

699,570

661,556

Total AssetsRs Lakh

215

114

358

1374

112220102418

916

191723252127

61226

21435

6

1524876

139

113

1012

61352978

104

1112

Ranks

1,465,362

713,592

5,794,771489,651

1,283,554

1,220,777

641,206

585,195

874,036

1,349,493

740,345

224,990

307,776

715,097

204,647

364,699

501,002

320,832

314,930313,370

217,050

214,034

251,719

156,448

942,386

395,704

227,104

1,465,181

4,988,302

390,552

1,021,481

166,439

162,422

432,586

130,401

262,287

156,702

99,185

135,016

104,558

42,449

66,092

38,831

170,288

45,371

59,833

500,134

1,151,798

1,121,432

476,028

1,027,681

274,808

140,053

251,164

165,646

238,579

86,094

90,977

NetworthRs Lakhs

210

114

45

1112

738

2320

926161317

181924252127

61522

21435

6

1624857

129

133

1110

412536

10798

1211

Ranks



State Bank of India

Bank of Baroda

Union Bank of IndiaBank of India


IDBI Bank

Punjab & Sind Bank


Canara Bank

Corporation Bank

UCO Bank

Dena Bank

Indian Bank


Syndicate Bank


Andhra Bank


Bank of MaharashtraIndian Overseas Bank




Allahabad Bank



Vijaya Bank

HDFC Bank

Axis Bank

YES Bank

Indusind Bank

Kotak Mahindra Bank

ICICI Bank

Dhanalakshmi Bank

Lakshmi Vilas Bank

Federal Bank

City Union Bank


ING Vysya Bank

South Indian Bank

Karur Vysya Bank


Karnataka Bank


Bank of Rajasthan


Barclays Bank

DBS Bank


BNP Paribas

Citi

HSBC


Bank of Nova Scotia

Deutsche Bank

Caylon Bank

Bank of America

ABN Amro Bank

33.67

26.62

29.8326.10

24.07

31.91

33.65

24.12

21.67

30.49

24.35

25.41

19.31

24.51

21.58

17.96

20.99

12.68

22.5918.89

22.43

14.23

12.67

17.73

12.98

19.12

11.03

37.61

34.81

34.85

18.71

1.41

(5.13)

39.92

27.55

19.52

25.88

23.45

24.73

19.27

16.99

15.07

18.19

18.12

9.00

(21.62)

60.03

38.28

32.74

29.54

25.54

24.63

30.00

(0.76)

0.98

45.10

21.23

(12.38)



Best Foreign Banks


Total AssetsGrowth

%

16

57

1232

11154

108

189

16211725

132014232622241927

13245

6

1263547

101189

1213

1346785

111029

12

Ranks

38.08

26.55

33.5526.46

26.01

53.98

39.64

26.35

21.30

33.49

25.42

26.83

18.90

24.63

21.77

23.54

20.13

18.92

25.1418.73

19.86

16.11

15.00

18.65

14.71

18.99

13.73

41.72

33.95

21.82

16.14

(4.74)

(10.67)

37.70

31.01

24.25

27.73

24.72

21.67

19.37

20.33

15.43

19.49

19.09

9.66

(23.51)

80.90

18.20

12.97

3.62

12.04

17.25

8.25

(20.75)

2.85

(27.89)

(0.57)

(15.61)

DepositGrowth

%

37

48

10129

165

116

211315141720

122218242523261927

12345

6

12534697

118

101213

1247536

118

129

10

Ranks

30.17

34.94

29.9825.94

29.46

25.81

34.19

25.54

28.89

23.80

24.91

25.43

29.18

21.84

27.29

19.87

28.92

16.26

17.0923.98

21.82

27.05

19.04

18.26

18.59

17.10

11.92

55.90

36.70

31.52

23.25

6.90

(3.24)

52.05

35.94

18.45

24.43

23.27

14.34

13.38

10.49

10.84

8.93

11.17

4.67

(19.53)

38.18

15.17

12.49

(1.64)

4.02

(7.87)

(33.68)

0.66

(1.81)

(2.73)

(2.80)

(18.26)

AdvancesGrowth

%

31

411

512

213

8171514

618

920

726

251619102123222427

12345

6

1253467

109

118

1213

12364

1012

5789

11

Ranks


NameRank 2009

1

2

34

5

6

7

8

9

10

11

12

13

14

15

16

17.5

17.5

1920

21

22

23

24.5

24.5

26

27

1

2

3

4

5

6

1

2

3

4

5

6

7

8

9

10

11

12

13

1

2

3

4

5

6

7

8

9

10

11

12

CATEGORY GROWTH



22.63

30.97

33.6430.02

27.04

96.00

28.77

19.48

33.35

17.16

10.55

23.95

27.00

31.80

25.54

26.63

21.45

33.98

11.3317.13

9.96

28.40

17.48

29.08

28.31

5.52

35.50

41.95

42.58

54.64

52.60

23.88

14.55

22.86

23.70

51.55

21.42

27.28

30.34

39.01

20.34

23.42

3.23

1.01

22.72

13.41

252.18

30.76

14.98

77.10

20.78

23.71

15.05

80.50

42.32

29.59

29.81

6.59

NIIGrowth

%


12

34567891011121314151617.517.5

192021222324.524.52627

12345

6

12345678910111213

123456789101112

State Bank of India

Bank of Baroda

Union Bank of IndiaBank of India


IDBI Bank

Punjab & Sind Bank


Canara Bank

Corporation Bank

UCO Bank

Dena Bank

Indian Bank


Syndicate Bank


Andhra Bank


Bank of MaharashtraIndian Overseas Bank




Allahabad Bank



Vijaya Bank

HDFC Bank

Axis Bank

YES Bank

Indusind Bank

Kotak Mahindra Bank

ICICI Bank

Dhanalakshmi Bank

Lakshmi Vilas Bank

Federal Bank

City Union Bank


ING Vysya Bank

South Indian Bank

Karur Vysya Bank


Karnataka Bank


Bank of Rajasthan


Barclays Bank

DBS Bank


BNP Paribas

Citi

HSBC


Bank of Nova Scotia

Deutsche Bank

Caylon Bank

Bank of America

ABN Amro Bank

Ranks2009Name

187

48

131

10205

222517146

1615193

24232611219

12272

35462

1

7519432

106

12138

11

15

11398

102476

12

Ranks

35.55

55.15

24.4849.66

50.86

17.69

14.34

156.33

32.42

21.47

35.31

17.48

23.45

10.56

7.64

28.48

13.45

57.42

14.2510.27

5.67

(42.08)

28.08

(21.15)

19.20

3.83

(27.35)

41.18

69.49

51.91

97.67

(6.06)

(9.61)

102.07

99.05

35.99

20.07

18.53

20.31

28.45

13.22

13.83

10.32

1.81

2.16

(329.89)

388.01

298.37

11.75

30.06

20.44

8.30

78.20

50.93

11.38

22.78

10.42

(93.10)

Net ProfitGrowth

%

63

1154

1517

18

137

16122022

919

2

182123271025142426

42315

6

123675498

10121113

12857

113496

1012

Ranks

891,505

179,161

139,265290,554

233,528

60,189

4,702

162,754

170,727

66,799

103,072

36,984

197,542

51,418

71,857

42,507

39,770

53,179

73,568228,491

89,323

41,649

33,327

63,090

24,820

46,930

69,025

315,459

144,412

30,530

31,468

31,182

306,281

25,225

3,604

40,017

9,406

13,356

16,723

14,303

16,017

34,204

18,742

8,315

10,696

(3,781)

13,680

25,905

190,677

44,285

216,659

275,558

44,385

15,287

46,848

6,054

33,698

1,938

Increase inNetworthRs Lakhs

16

923

1727

87

151024

51913212318

124

11222516262014

13645

2

312

110

857624

119

13

1083621594

117

12

Ranks




Bank of India

Indian BankUnion Bank of India


Corporation Bank


Bank of Baroda

Dena Bank

Andhra Bank


Punjab & Sind Bank

State Bank of India

Canara Bank



Allahabad Bank

Syndicate Bank

State Bank of MysoreBank of Maharashtra



Vijaya Bank


UCO Bank


IDBI Bank

Axis Bank

HDFC Bank

YES Bank

ICICI Bank

Kotak Mahindra Bank

Indusind Bank

City Union Bank


Karur Vysya Bank


Federal Bank

Karnataka Bank

South Indian Bank

Bank of Rajasthan

Dhanalakshmi Bank



ING Vysya Bank

Lakshmi Vilas Bank


Citi

Bank of America

Caylon Bank


BNP Paribas

DBS Bank

HSBC

Deutsche Bank

Bank of Nova Scotia

Barclays Bank

ABN Amro Bank

1.39

1.49

1.621.27

1.30

1.24

1.17

1.09

1.02

1.09

0.92

1.26

1.04

1.06

0.91

0.88

0.90

0.81

0.910.72

0.88

0.83

0.59

0.34

0.59

0.45

0.62

1.44

1.28

1.60

0.98

1.03

0.58

1.50

1.51

1.49

1.09

1.48

1.25

1.09

0.74

1.21

(1.25)

0.57

0.70

0.71

4.21

2.12

3.42

4.10

2.87

2.13

2.72

1.51

1.72

2.04

0.16

0.06



Best Foreign Banks


ReturnOn Assets

%

32

15478

9.513

9.5146

1211

15.518.5

1721

15.522

18.520

24.527

24.52623

23154

6

213

7.545

7.596

13121110

1732465

1098

1112

Ranks

10.68

9.78

11.1410.41

10.43

10.00

10.78

8.93

9.89

10.76

10.89

11.57

9.68

10.44

10.57

10.57

10.13

10.13

10.8410.28

10.60

11.25

11.41

9.50

10.00

9.78

9.97

10.57

14.96

13.63

10.06

15.50

12.56

12.87

12.47

11.50

11.53

12.42

12.28

11.40

12.06

11.03

13.47

11.76

11.13

11.38

8.36

12.61

11.28

10.10

12.30

10.11

9.39

13.63

13.31

8.52

17.29

12.47

Yield On Advances

%

923.5

41514

19.57

2722

851

2513

11.511.517.517.5

61610

32

2619.523.5

21

52361

4

239845

106

1317

1211

1247968

1023

1115

Ranks

6.15

5.76

6.086.09

6.45

6.31

6.46

5.33

5.86

6.41

6.72

7.03

5.93

6.72

6.95

6.56

6.24

6.26

6.955.92

7.41

7.95

7.42

5.86

6.58

6.55

7.14

6.06

6.58

8.34

6.82

6.84

7.66

7.60

7.40

7.34

6.22

6.45

7.53

6.84

6.67

6.52

7.49

6.54

6.18

7.42

3.45

3.91

2.25

3.10

4.98

3.94

4.03

4.94

1.66

7.50

9.24

4.59

Cost Of Deposits

%

92

78

141215

13.513

19.523

619.521.5

171011

21.55

252726

3.5181624

12634

5

41110

67

13918325

12

4523

106791

1112

8

Ranks


NameRank 2009

12

345

6.56.5

89

101112131415161718

192021222324252627

12345

6

123

4.54.5

6789

10111213

123456789

101112

CATEGORY PROFITABILITY



21.09

22.28

17.4519.75

27.02

18.23

18.54

17.35

19.47

17.91

19.71

20.43

15.74

16.98

19.19

17.83

13.13

18.22

14.8414.90

12.23

16.96

8.33

6.00

14.09

8.91

9.11

17.77

15.32

18.71

7.53

7.07

8.91

18.48

15.15

17.47

15.63

11.57

17.02

14.94

11.26

13.54

(14.72)

9.58

11.09

11.09

17.67

18.87

12.26

17.10

18.55

10.26

18.49

11.51

9.03

17.76

0.60

0.81

Return OnNetworth

%


12

3456.56.589101112131415161718

192021222324252627

12345

6

1234.54.5678910111213

123456789101112


Bank of India

Indian BankUnion Bank of India


Corporation Bank


Bank of Baroda

Dena Bank

Andhra Bank


Punjab & Sind Bank

State Bank of India

Canara Bank



Allahabad Bank

Syndicate Bank

State Bank of MysoreBank of Maharashtra



Vijaya Bank


UCO Bank


IDBI Bank

Axis Bank

HDFC Bank

YES Bank

ICICI Bank

Kotak Mahindra Bank

Indusind Bank

City Union Bank


Karur Vysya Bank


Federal Bank

Karnataka Bank

South Indian Bank

Bank of Rajasthan

Dhanalakshmi Bank



ING Vysya Bank

Lakshmi Vilas Bank


Citi

Bank of America

Caylon Bank


BNP Paribas

DBS Bank

HSBC

Deutsche Bank

Bank of Nova Scotia

Barclays Bank

ABN Amro Bank

Ranks2009Name

32

1451

109

157

1264

18168

132211

201923172627212524

23156

4

152483697

1312

10.510.5

51762938

104

1211

Ranks

74.18

71.87

71.6676.95

77.51

74.96

77.54

75.88

81.27

79.02

79.65

80.09

76.58

79.60

79.89

79.63

77.65

83.27

82.4783.44

83.03

85.00

84.86

85.90

86.86

87.53

89.42

72.88

73.61

78.36

76.94

80.13

86.68

75.57

76.16

75.57

76.05

67.12

78.85

80.62

87.15

81.98

90.15

87.99

84.76

85.76

29.87

48.13

32.70

45.43

57.04

52.92

59.30

53.79

60.08

59.95

71.25

67.54

Cost / Income

%

32

178495

17111416

61215131020

182119232224252627

12435

6

2.55

2.54167

118

1312

910

14237586

109

1211

Ranks

7.51

7.14

7.557.37

6.98

7.13

7.23

6.87

7.28

6.91

7.29

6.52

6.69

7.62

7.43

7.17

6.97

7.11

7.136.46

8.17

7.45

7.74

7.02

6.55

6.88

5.03

7.63

7.41

8.18

6.90

6.12

6.57

6.92

7.78

6.71

6.79

6.32

6.72

6.74

6.48

5.98

6.71

6.37

5.60

7.09

6.63

7.57

6.10

5.94

8.77

8.14

6.54

8.83

6.99

7.84

8.18

6.12

Return OnInvestments

%

513

48

1814.5

11221020

92523

37

121916

14.526

162

17242127

23146

5

31

7.54

11659

127.51013

2

86

1112

2491753

10

Ranks



Bank of India

Corporation Bank

Bank of BarodaUnion Bank of India

IDBI Bank

Indian Bank





Canara Bank


Punjab & Sind Bank

State Bank of India

Andhra Bank



Allahabad Bank

Dena BankSyndicate Bank



Vijaya Bank

UCO Bank

Bank of Maharashtra



YES Bank

ICICI Bank

Axis Bank

HDFC Bank

Kotak Mahindra Bank

Indusind Bank

Federal Bank


City Union Bank

Karur Vysya Bank


Karnataka Bank

South Indian Bank

Dhanalakshmi Bank

ING Vysya Bank

Bank of Rajasthan



Lakshmi Vilas Bank

Bank of America


Caylon Bank

Citi

Deutsche Bank

Bank of Nova Scotia

BNP Paribas

DBS Bank

Barclays Bank

HSBC


ABN Amro Bank

833.00

1,049.00

914.00694.00

2,030.33

617.00

657.75

689.50

654.92

1,142.43

780.17

839.82

655.58

556.00

728.29

910.24

701.53

706.00

714.00750.65

555.39

602.00

756.00

732.00

635.61

560.28

585.00

988.36

1,154.00

1,060.00

446.00

347.00

836.00

750.00

500.00

565.18

638.00

679.25

649.00

645.14

585.88

606.39

532.93

379.00

374.00

510.00

2,430.57

1,825.28

2,105.00

1,880.10

1,434.10

3,890.97

2,035.00

1,662.32

1,110.13

961.81

971.77

1,029.41



Best Foreign Banks


Business PerEmployeeRs Lakhs

73

4161

22181720286

1926125

1514

131027239

11212524

31256

4

4238

1067195

121311

263581479

121110

Ranks

7.49

7.64

6.056.28

8.42

6.23

5.36

5.20

5.64

6.18

4.97

4.87

5.03

4.74

4.58

4.68

4.44

3.75

4.283.64

3.55

3.48

2.34

2.40

2.76

1.71

1.22

11.38

11.00

10.02

4.18

3.00

3.49

6.90

5.00

4.98

5.98

6.43

5.00

4.31

4.10

3.03

2.89

(4.00)

1.39

2.07

110.85

253.63

130.00

45.12

26.90

78.39

49.00

72.16

1.96

16.06

23.82

0.62

Profit PerEmployeeRs Lakhs

32

74159

1086

1213111416151719

182021222524232627

12346

5

14.5

632

4.5789

10131211

31278465

1110

912

Ranks

2.72

2.20

2.522.68

0.87

3.37

2.75

2.57

3.15

1.96

2.36

2.12

2.80

2.48

2.60

1.75

2.35

2.39

2.442.19

2.52

2.28

1.90

1.63

2.34

1.64

2.00

2.56

2.15

2.87

4.69

5.33

1.80

3.69

2.84

2.92

2.59

3.37

2.24

2.79

2.51

2.26

2.33

2.92

2.55

2.07

5.07

3.06

3.09

4.67

5.21

2.48

4.18

2.91

6.29

4.30

3.70

4.90

Spread / Total Assets

%

518

106

271482

221420

311

7241513

121910172326162521

45321

6

15

3.572

1269

1110

3.58

13

310

952

127

111684

Ranks


NameRank 2009

12

3456789

101112131415161718

192021222324252627

12345

6

123456789

10111213

123456789

101112

CATEGORY EFFICIENCY



1.51

1.44

1.361.04

0.92

1.34

1.23

1.43

1.31

1.05

1.16

1.11

1.13

1.51

1.22

0.98

1.12

1.26

0.990.72

1.32

1.31

1.18

1.01

0.93

0.79

0.84

2.18

1.95

2.25

2.08

1.26

1.79

1.45

0.70

1.49

1.68

1.37

1.67

0.88

1.64

1.91

0.75

1.78

1.53

1.44

4.38

7.71

4.56

3.79

4.11

2.44

2.79

2.79

3.51

3.17

3.62

3.57

Non-Interestncome / Total

Assets %


12

3456789101112131415161718

192021222324252627

12345

6

12345678910111213

123456789101112

Bank of India

Corporation Bank

Bank of BarodaUnion Bank of India

IDBI Bank

Indian Bank





Canara Bank


Punjab & Sind Bank

State Bank of India

Andhra Bank



Allahabad Bank

Dena BankSyndicate Bank



Vijaya Bank

UCO Bank

Bank of Maharashtra



YES Bank

ICICI Bank

Axis Bank

HDFC Bank

Kotak Mahindra Bank

Indusind Bank

Federal Bank


City Union Bank

Karur Vysya Bank


Karnataka Bank

South Indian Bank

Dhanalakshmi Bank

ING Vysya Bank

Bank of Rajasthan



Lakshmi Vilas Bank

Bank of America


Caylon Bank

Citi

Deutsche Bank

Bank of Nova Scotia

BNP Paribas

DBS Bank

Barclays Bank

HSBC


ABN Amro Bank

Ranks2009Name

1.53

519246

114

8.518141715

1.512221610

21277

8.51320232625

24136

5

81373

104

1151

12269

31254

1211118967

Ranks

102.50

86.85

76.3867.21

168.34

77.30

83.27

68.80

71.50

63.67

75.64

60.25

50.95

79.68

45.83

62.68

59.47

34.67

38.6740.64

47.08

50.74

23.84

27.10

26.66

16.20

12.78

257.51

266.91

230.96

160.35

125.50

81.51

81.91

83.47

58.44

79.68

70.20

59.00

37.53

31.75

42.52

25.70

(108.73)

10.33

20.36

6,740.00

44,387.00

2,592.17

5,300.17

3,308.08

3,057.20

1,888.89

2,590.20

602.20

2,747.43

2,118.61

64.57

Profit PerBranch

Rs Lakhs

23

711

164

109

128

1416

519131522

212018172523242627

21435

6

216345897

10131211

217345

108

1169

12

Ranks

1.37

1.15

1.571.38

0.78

1.68

1.62

1.60

1.70

1.23

1.40

1.22

1.67

1.62

1.61

1.14

1.39

1.43

1.591.32

1.70

1.64

1.48

1.31

1.63

1.26

1.57

1.83

1.86

1.93

3.02

4.17

1.98

1.47

1.25

1.51

1.51

1.87

1.52

1.61

2.00

2.42

1.83

4.07

2.65

1.82

1.78

1.31

1.51

2.46

4.63

0.84

1.97

1.31

4.31

2.32

2.56

4.67

OperatingExpenses/Total

Assets %

93

15.510

125

20.518

26.55

124

2420.5

192

1113

178

26.52314

722

615.5

12356

4

21

3.53.5

956

1011

81312

7

5248

11163

1079

12

Ranks





State Bank of TravancoreBank of Baroda

Indian Bank

Corporation Bank

UCO Bank

Punjab & Sind Bank

Andhra Bank

Syndicate Bank



IDBI Bank


Bank of Maharashtra


Allahabad Bank


State Bank of HyderabadBank of India

Dena Bank

Union Bank of India

Vijaya Bank

Canara Bank


State Bank of India


Indusind Bank

YES Bank

Axis Bank

HDFC Bank

Kotak Mahindra Bank

ICICI Bank


Karur Vysya Bank

Dhanalakshmi Bank

Lakshmi Vilas Bank

City Union Bank

Federal Bank

ING Vysya Bank

Karnataka Bank


Bank of Rajasthan

South Indian Bank



Bank of Nova Scotia


Caylon Bank

Bank of America

DBS Bank


Barclays Bank

BNP Paribas

Citi

ABN Amro Bank

Deutsche Bank

HSBC

(22,198)

(55,183)

(2,643)(13,846)

(2,769)

(2,520)

(11,244)

2,551

(429)

(17,411)

(3,400)

861

5,908

5,296

3,214

3,589

6,774

5,302

17,41053,996

4,817

26,675

18,732

89,535

25,900

275,126

92,646

(13,729)

7,436

40,316

108,110

27,763

206,977

(178)

1,160

122

607

1,915

12,095

9,315

6,363

7,404

3,473

7,208

4,039

24,213

(0.31)

(5,951.82)

(132.00)

(0.22)

2,922.00

33,437.00

99,482.10

4,137.00

101,410.00

54,999.00

18,771.02

84,291.49



Best Foreign Banks


CATEGORY CREDIT QUALITY

Increase InGNPA

Rs Lakhs

21

84795

121036

11181613141917

202415232125222726

12453

6

14235

12118

10697

13

312458

117

1296

10

Ranks

262,877

407,468

57,232280,156

263,121

104,346

245,207

53,289

159,317

338,169

180,284

96,568

262,667

212,415

110,246

43,228

322,974

66,337

147,343530,125

127,796

295,934

97,433

206,598

173,649

1,303,526

506,049

4,282.00

3,211.22

99,617.00

12,041.00

7,091.00

111,479.00

11,091.00

29,339.00

3,421.00

17,133.00

31,331.00

63,098.00

16,030.04

48,491.00

60,716.00

30,301.00

24,222.73

13,326.00

8,897.00

-

3,213.41

-

3,250.00

-

43,479.11

30,290.22

-

52,570.00

19,092.00

41,500.42

12,468.87

RestructuredLoans

Rs Lakhs

1824

32019

716

2112313

51715

81

224

1026

921

614122725

21543

6

116

1384193257

1012

2.55

2.56

2.511

92.512

810

7

Ranks

5.98

1.80

8.373.51

1.31

2.82

20.54

3.65

2.17

12.61

16.58

5.68

10.07

8.41

10.80

12.32

7.21

12.36

5.174.66

14.44

3.73

9.28

12.35

17.06

16.48

13.97

10.76

2.53

3.20

4.28

10.16

9.13

2.23

1.91

6.65

14.29

9.25

1.57

12.09

7.41

10.97

5.45

10.30

22.65

21.23

-

0.36

-

-

1.07

5.00

9.69

1.93

9.12

15.36

1.62

3.49

NNPA / Networth

%

112

13514

2763

212510161417181220

98

237

1519262422

61235

4

325

1171

106948

1312

242259

117

1012

68

Ranks


NameRank 2009

1.51.5

3456789

101112131415161718

192021222324252627

12345

6

123456789

10111213

123456789

101112



1.53

1.77

1.671.27

0.89

1.14

2.21

0.65

0.83

1.93

2.67

1.42

1.38

1.31

2.29

1.39

1.81

1.63

1.111.71

2.13

1.96

1.95

1.56

2.85

2.98

2.54

1.61

0.68

1.08

1.98

4.31

4.32

1.81

1.95

1.99

2.71

1.80

2.57

1.25

3.66

2.64

2.04

2.18

4.56

8.78

0.04

8.14

0.05

0.02

1.26

2.78

10.93

2.00

5.10

4.93

2.71

5.36

GNPA/Gross Advances

%


1.51.5

3456789101112131415161718

192021222324252627

12345

6

12345678910111213

123456789101112



State Bank of TravancoreBank of Baroda

Indian Bank

Corporation Bank

UCO Bank

Punjab & Sind Bank

Andhra Bank

Syndicate Bank



IDBI Bank


Bank of Maharashtra


Allahabad Bank


State Bank of HyderabadBank of India

Dena Bank

Union Bank of India

Vijaya Bank

Canara Bank


State Bank of India


Indusind Bank

YES Bank

Axis Bank

HDFC Bank

Kotak Mahindra Bank

ICICI Bank


Karur Vysya Bank

Dhanalakshmi Bank

Lakshmi Vilas Bank

City Union Bank

Federal Bank

ING Vysya Bank

Karnataka Bank


Bank of Rajasthan

South Indian Bank



Bank of Nova Scotia


Caylon Bank

Bank of America

DBS Bank


Barclays Bank

BNP Paribas

Citi

ABN Amro Bank a

Deutsche BankG

HSBC

Ranks2009Name

1116

14635

2212

18251087

239

1713

41521201912262724

31245

6

345

10281

11967

1213

2113147

125986

10

Ranks

(1.62)

(1.57)

(0.58)(0.37)

(0.24)

(0.27)

(0.80)

0.41

(0.04)

(1.01)

(0.27)

0.19

0.29

0.73

0.64

1.06

0.74

1.11

2.171.80

0.83

1.19

4.86

2.85

3.42

2.16

6.28

(4.65)

2.47

1.81

2.99

22.57

(33.01)

(0.14)

1.17

0.11

0.44

1.72

3.38

4.45

6.23

3.60

9.77

5.27

10.72

(38.74)

(0.01)

14.77

2.58

0.00

7.81

7.72

27.36

(79.68)

49.68

(16.35)

(552.02)

(48.74)

Increase In GNPA / Increase In Gross

Advances %

12

569

7.54

1310

37.511121514181619

232117202624252227

13245

6

1534672

108

119

1213

1432657

1189

1210

Ranks

(0.69)

(1.39)

(1.73)(0.11)

(0.03)

0.12

(2.04)

0.18

0.26

0.05

0.02

0.86

(0.63)

0.64

0.36

1.75

0.25

0.92

1.390.12

1.67

0.89

2.93

1.96

2.91

1.69

4.39

(3.76)

1.10

0.36

0.93

11.25

(14.56)

0.16

0.86

0.88

0.38

1.50

0.71

4.89

0.99

4.12

7.53

7.18

9.37

(12.59)

-

3.78

-

-

3.86

4.05

15.51

(51.73)

37.51

(5.17)

(38.00)

(9.18)

Increase In NNPA / Increase In Net

Advances %

43

267

10.51

1214

98

175

1615231319

2010.5

21182624252227

14235

6

145273968

11101213

21

7.57.5

345

1269

1110

Ranks



Foreign

Nationalised

Nationalised

New PrivateForeign

Nationalised

Nationalised

Nationalised

Foreign

Old Private

Foreign

Foreign

Foreign

Nationalised

Old Private

Nationalised

Foreign

Old PrivateNationalised

Foreign

Nationalised

Foreign

Old Private

Old Private

Old Private

New Private

Foreign

New Private

Nationalised

Nationalised

Nationalised

New Private

Old Private

Old Private

Foreign

Old Private

Old Private

New Private

Old Private

Nationalised

Nationalised

Nationalised

Old Private

Foreign

Nationalised

Nationalised

Nationalised

Nationalised

Nationalised

Nationalised

Nationalised

Nationalised

Old Private

Nationalised

Nationalised

Nationalised

Nationalised

New Private

1,596,025

8,497,179

5,939,003

11,737,411416,676

19,239,695

18,970,848

5,225,492

297,574

1,518,714

1,248,552

335,314

81,833

18,689,252

633,283

13,127,186

5,167,746

820,6627,398,391

602,286

4,305,061

1,414,737

464,689

496,880

3,219,819

14,281,158

4,997,028

21,834,783

11,240,101

7,258,183

10,011,589

2,211,026

2,488,993

3,300,411

358,660

2,033,328

1,510,140

1,564,493

736,091

9,836,886

3,467,566

20,976,051

1,809,234

4,180,176

3,922,442

6,244,891

74,207,312

2,833,198

3,291,577

6,000,619

4,204,192

11,588,514

956,604

10,022,156

13,870,284

5,453,590

5,453,542

1,616,943

ABN Amro Bank

Allahabad Bank

Andhra Bank

Axis BankBank of America

Bank of Baroda

Bank of India

Bank of Maharashtra

Bank of Nova Scotia

Bank of Rajasthan

Barclays Bank

BNP Paribas

Calyon Bank

Canara Bank



Citi

City Union BankCorporation Bank

DBS Bank

Dena Bank

Deutsche Bank


Dhanalakshmi Bank

Federal Bank

HDFC Bank

HSBC

ICICI Bank

IDBI Bank

Indian Bank


Indusind Bank

ING Vysya Bank



Karnataka Bank

Karur Vysya Bank

Kotak Mahindra Bank

Lakshmi Vilas Bank


Punjab & Sind Bank


South Indian Bank




State Bank of India





Syndicate Bank


UCO Bank

Union Bank of India


Vijaya Bank

YES Bank


COMPATABILITY MODE

Deposits

944,196

93,704

131,123

1,018,548216,094

563,609

948,698

19,001

304,460

128

233,083

284,408

428,786

705,661

13

80,425

1,856,630

15207,240

249,707

5,213

360,093

34,552

-

74,894

268,584

826,845

6,732,369

4,441,704

53,078

654,828

185,646

215,242

99,663

344,655

397

2,304

590,407

3,260

72,196

271,148

437,436

25,701

662,259

78,545

236,447

5,371,368

90,306

276,208

90,378

80,776

219,048

3,268

206,242

388,490

45,677

61,924

218,906

Borrowings

1,081,069

2,965,105

1,691,111

4,633,035367,030

5,244,588

5,260,718

1,838,214

172,615

680,915

788,312

356,175

403,083

5,777,690

218,397

4,306,072

2,451,935

239,7462,493,777

781,066

1,247,308

870,486

162,173

156,736

1,211,897

5,881,755

3,115,382

10,305,831

5,004,760

2,280,057

3,121,544

808,341

1,049,554

1,073,633

669,440

896,149

471,598

911,018

186,306

2,848,895

1,262,743

6,338,518

607,520

1,555,156

1,099,879

2,098,166

27,595,396

805,062

1,137,796

1,702,921

1,323,171

3,053,723

320,719

2,938,478

4,299,696

1,792,421

1,738,770

711,702

Investments

1,665,974

5,880,176

4,413,926

8,155,677335,594

14,398,590

14,290,937

3,429,077

480,528

778,075

1,055,051

370,988

176,299

13,821,940

368,384

8,548,320

3,991,994

564,5254,851,216

272,285

2,887,796

879,763

327,402

319,606

2,239,188

9,888,305

2,758,869

21,831,085

10,342,834

5,146,528

7,488,527

1,577,064

1,675,093

2,093,041

70,255

1,181,004

1,040,988

1,662,534

524,583

6,850,037

2,461,535

15,470,299

1,185,203

3,751,602

2,985,071

4,367,917

54,250,320

2,161,211

2,561,605

4,363,412

3,271,093

8,153,227

657,169

6,880,386

9,653,423

3,539,355

3,546,811

1,240,309

Advances

238,579

585,195

364,699

1,021,481274,808

1,283,554

1,349,493

251,719

86,094

104,558

500,134

165,646

90,977

1,220,777

38,831

641,206

1,151,798

66,092489,651

140,053

217,050

476,028

59,833

42,449

432,586

1,465,181

1,121,432

4,988,302

942,386

713,592

715,097

166,439

170,288

262,287

251,164

156,702

135,016

390,552

45,371

740,345

214,034

1,465,362

130,401

1,027,681

204,647

320,832

5,794,771

156,448

227,104

313,370

224,990

501,002

99,185

395,704

874,036

307,776

314,930

162,422

NetworthSector Name

All figures pertain to March 31, 2009



3,208,255

9,764,801

6,846,921

14,772,205984,535

22,740,673

22,550,177

5,903,035

699,570

1,722,440

2,068,863

982,799

661,556

21,964,580

704,008

14,765,522

10,526,359

925,1018,690,581

1,256,459

4,846,051

2,495,487

594,302

564,282

3,885,086

18,327,077

9,462,039

37,930,096

17,240,232

8,412,175

12,107,340

2,761,468

3,185,699

3,769,326

1,053,123

2,285,781

1,706,074

2,871,187

831,725

11,258,259

4,136,379

24,691,862

2,038,352

9,749,216

4,637,020

7,672,189

96,443,208

3,307,589

4,048,579

6,966,544

4,946,051

13,025,567

1,094,329

11,166,417

16,097,551

6,204,071

6,238,260

2,290,079

Total Assets

311,967

736,473

537,461

1,083,54860,691

1,509,158

1,634,735

429,155

54,525

138,361

203,654

63,636

34,659

1,711,905

55,662

1,045,519

684,023

80,440606,735

80,864

344,750

188,145

64,520

40,841

331,538

1,633,227

632,692

3,109,255

1,163,162

683,033

964,141

230,947

223,989

298,812

51,592

191,740

144,610

306,514

65,762

885,648

324,717

1,932,617

168,692

564,942

381,028

570,950

6,378,844

271,308

324,727

580,406

412,315

957,963

97,715

812,137

1,188,938

431,187

523,782

200,332

InterestIncome


ABN Amro Bank

Allahabad Bank

Andhra Bank

Axis BankBank of America

Bank of Baroda

Bank of India

Bank of Maharashtra

Bank of Nova Scotia

Bank of Rajasthan

Barclays Bank

BNP Paribas

Calyon Bank

Canara Bank



Citi

City Union BankCorporation Bank

DBS Bank

Dena Bank

Deutsche Bank


Dhanalakshmi Bank

Federal Bank

HDFC Bank

HSBC

ICICI Bank

IDBI Bank

Indian Bank


Indusind Bank

ING Vysya Bank


JP Morgan Chase Bank NA

Karnataka Bank

Karur Vysya Bank

Kotak Mahindra Bank

Lakshmi Vilas Bank


Punjab & Sind Bank


South Indian Bank




State Bank of India





Syndicate Bank


UCO Bank

Union Bank of India


Vijaya Bank

YES Bank

Name

143,715

520,605

374,772

714,92815,189

996,816

1,084,845

303,504

37,103

99,845

97,852

27,202

17,370

1,240,125

39,089

822,672

242,884

56,183437,637

49,392

238,307

58,794

44,795

28,679

199,992

891,110

266,100

2,272,594

1,030,572

422,182

677,181

185,044

159,027

198,786

23,078

144,383

103,568

154,660

50,407

685,998

223,530

1,229,531

116,404

248,962

270,706

424,271

4,291,530

197,944

240,902

467,632

284,059

697,760

64,343

647,668

807,582

315,035

411,303

149,214

InterestExpence NII

122,510

114,193

76,537

289,68739,332

275,766

305,186

50,002

17,140

12,361

58,921

24,318

25,493

231,121

9,959

106,997

358,229

12,369110,721

30,219

43,012

101,967

12,013

7,936

51,577

329,061

269,943

760,371

138,991

103,543

159,582

45,625

54,767

24,506

71,821

35,315

26,520

35,785

10,699

107,133

40,769

291,969

16,427

309,705

57,705

76,931

1,269,080

35,041

48,036

63,164

57,310

86,036

13,584

101,989

148,255

49,086

69,881

43,502

168,252

215,868

162,689

368,62045,502

512,342

549,890

125,651

17,422

38,516

105,802

36,434

17,289

471,780

16,573

222,847

441,139

24,257169,098

31,472

106,443

129,351

19,725

12,162

131,546

742,117

366,592

836,661

132,590

260,851

286,960

45,903

64,962

100,026

28,514

47,357

41,042

151,854

15,355

199,650

101,187

703,086

52,288

315,980

110,322

146,679

2,087,314

73,364

83,825

112,774

128,256

260,203

33,372

164,469

381,356

116,152

112,479

51,118

OtherIncome

149,736

139,945

110,426

285,82117,514

357,605

309,397

96,302

5,857

31,502

89,245

19,343

9,959

306,526

18,650

186,170

258,722

13,952100,157

16,483

76,821

115,507

24,202

11,306

57,145

553,282

219,466

704,509

133,790

141,514

194,170

54,702

77,247

47,086

13,781

34,652

25,759

119,641

15,169

138,284

69,184

420,620

32,846

249,973

78,743

93,314

1,564,871

46,004

66,508

79,392

79,938

171,596

20,427

146,298

221,411

97,514

92,471

41,853

OperatingExpense

1,937

76,861

65,302

181,53433,700

222,723

300,733

37,515

15,286

11,769

3,011

17,000

15,553

207,240

3,720

57,124

217,307

12,21589,278

25,902

42,264

43,005

(8,807)

5,747

50,050

224,494

129,129

375,814

85,853

124,529

132,579

14,835

18,878

40,984

44,387

26,669

23,585

27,609

5,030

90,543

43,718

309,088

19,476

190,675

40,346

61,580

912,123

27,892

33,692

53,155

60,784

91,281

15,022

55,770

172,655

18,472

26,246

30,386

36,641

42,211

7,922

32,713-

45,115

62,821

27,190

-

5,703

48,462

3,193

-

150,725

8,794

106,300

105,070

6,11113,830

1,493

31,338

7,717

12,701

2,824

6,812

62,762

39,103

455,394

94,896

9,381

99,914

17,913

20,595

28,782

892

11,610

2,582

39,684

6,485

44,243

7,803

26,385

13,431

51,409

25,294

16,579

955,202

19,274

12,907

26,363

18,838

63,177

2,208

81,267

32,594

52,500

29,229

4,116

NetProfit NNPA

Figures in Rs Lakhs



‘Go for financial inclusion’


REGULATOR SPEAK K C CHAKRABARTY Deputy Governor, RBI

KC Chakrabarty speaks

with the Financial Express

on a host of issues. Excerpts:

How do you see the impact

of the slowdown on the

domestic banking sector?

I think we have been able

to manage the slowdown till

now. Thus, growth has picked

up now. Despite the severe

drought, the country’s

economy is growing by 7%.

Do you feel the Indian

financial system came out

unscathed?

I won't say is it was the

robustness that prevented

the greater damage to the

economic system. Rather, I

would say different players

and regulators have

managed it well. But then,

any financial system is

robust, if the availability

of credit is ensured for a

large segment of society.

Even those who are

very poor manage the

difficult situation very well.

What is the broad lesson for RBI

from the global financial crisis?

The broad lesson is to improve

banking penetration.Secondly, the

monetary policy must be concerned

with asset bubbles.Third, whenever

things are going good,you should be

concerned about the credit growth

and the money supply growth.Fourth,

whenever any particular sector shows

the signs of more volatility and more

risks,counter-cyclical measures

should be taken. There should always

be vigilance in the regulatory system.

Can it lead to a situation over

regulation impeding the freedom

of the markets?

Ideally it should not happen now.

But, whenever any crisis or any

accident takes place,people obviously

get cautious.That is a common thing.

At the Reserve Bank,we are very

clear. I see the regulators will be

cautious at the global level as well.

Because of that,reforms should not

slow down. At RBI, we are committed

to reforms. And hence we are working

to ensure the penetration of banking

facilities,which means taking

banking services to the doors of the

masses.

Will you allow sophisticated

derivative products in the market?

We should not be concerned about

derivative products.Rather, we should

be worried about providing basic

banking products to everybody. Let

the market take care of other things.

We are not into credit derivative

products like CDS.When we think

that the market is mature enough for

these kinds of derivative products,

then only will we introduce these

products.

The problem is that we

are not at all concerned of

the 90% population of the

country living without

their access to credit.

Moreover, 50% of the

population is does not have

access to any kind of

banking products. I think

that we should be more

concerned about these

issues.We are one of the

poorest countries in the

world. The problem with

the poor in the country is

that they can get money at a

50% interest rate from

moneylenders or even a

30% interest rate when it

comes to microfinance

institutions. Still, they are

unable to get credit from

financial institutions at

even a 15% rate of interest.

That is the tragedy.

What is RBI’s focus?

Well, financial inclusion,

financial stability and

above all,financial sector

reforms. You have to improve

everywhere. You have to bring new

things.Our current focus is confined

to three areas, which include better

protection to customers, better

treatment to customers and finally,

better risk management.There may

be more regulations from RBI on the

subject in the future.

How are you planning to do that?

We will do it by way of promoting

financial literacy. Now, we have made

some progress on this topic. Still, I

think that financial literacy can't be

done by the Reserve Bank alone. You

need to involve other regulators too.

The recently formed Financial

Sector Stability & Development

Council is also discussing the

financial inclusion issue. If we have

to take products and services to the

poor,you need have the help of

technology as a front-end device. ◆





Weathering the storm and

emerging a global force

GUEST COLUMN K V KAMATH

INDIAhas been among

the first economies to

recover from the

impact of the global

financial and economic

crisis.While this high-

lights the positive

fundamentals driving

long-term growth in the

country, it also brings into

focus the resilience of our

financial sector in the

face of a crisis that had its

genesis in the financial

systems of the West.

It is important to have

a perspective on the

challenges that arose

from the global financial

crisis for our economy

and financial sector. The

impact was mainly

through the trade and

capital flow channels,

with a resultant impact

on domestic liquidity and

business confidence.

These challenges and the

rapidity of their

emergence created a

mood of shock and

erosion of confidence among

businesses, consumers, lenders and

investors.The corporate sector was

faced with a new cost-price-demand

equation, to which it had to adjust

quickly. In this environment, the

banking system had to deal with

challenges on the liquidity front and

the risk of increased corporate

defaults given the sudden decline in

corporate profitability. Lower

business confidence and increased

soundness of the Indian banking

system.The banking system entered

the global financial crisis in much

better shape than the previous

economic down cycle of the 1990s. The

Indian banking system was

characterised by healthy capital

ratios, conservative leverage,stable

funding based largely on deposits and

a healthy asset quality profile.It is also

important to remember that the global

financial crisis did not have any

shock from the global

markets.As part of its

confidence building

measures, the Reserve

Bank of India significant-

ly reduced interest rates

in the economy and

provided adequate

liquidity support to all

sectors.

Simultaneously, the

government announced

key fiscal measures

aimed at both, supporting

sectors facing difficulties

as well as maintaining an

overall demand impetus

in the economy. These

measures had a

stabilising impact on the

economy and the banking

sector.

The development of

the banking sector will

mirror the country’s

economic growth

momentum.With the

economy expected to

grow at sustained high

rates over the next

decade,the opportunities

for the banking system will be

significant.Favourable demographics

and increasing incomes will continue

to drive growth in retail banking,

while increased investments,

particularly in the infrastructure

sector, will create opportunities in

corporate banking.

As such,the domestic momentum

itself has the potential to elevate the

Indian banking system to global

prominence. Continued

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