CONTENTS

18 ‘We aspires to become a global bank’
K R KAMATH, MD&CEO, Punjab National Bank

22 ‘We are a delta on the Indian economy’
ADITYA PURI, MD&CEO, HDFC Bank

BEST BANKS
INSIDE
Editorial Indian banks need to scale top Theme Story Gamechangers in the Indian banking sector 4

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Methodology Rationale Looking to strengthen and consolidate, maintain credit quality and profitability 10 Nationalised Bank Rank 1: Punjab National Bank Rank 2: Bank of Baroda New Private Sector Bank Rank 1: HDFC Bank Rank 2: Axis Bank Old Private Sector Bank Rank 1: Federal Bank Rank 2: Tamilnad Mercantile Bank Foreign Bank Rank 1: JP Morgan Chase Rank 2: Citi Credit Quality Rank 1: IndusInd Bank 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) Regulator Speak: K C Chakrabarty “Go for financial inclusion” Guest Column: K V Kamath Weathering the storm and emerging a global force

26 ‘Emerging as a lender to the common man’
M VENUGOPALAN, Chairman, Federal Bank

32 ‘We will cater with a suite of services’
KALPANA MORPARIA, CEO, JP Morgan

18 20

22 24

26 30

32 34

36 ‘Financial inclusion plans are profitable’
V ROMESH SOBTI, MD&CEO, IndusInd Bank

54 ‘Go for financial inclusion’
K C Chakrabarthy, Deputy Governor, RBI

36

38 54

56 Weathering the storm and emerging a global force
K V KAMATH,Chairman, ICICI Bank

56

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THE FINANCIAL EXPRESS

MARCH 2010

EDITORIAL

Indian banks need to scale up
BEST BANKS
SURVEY 2009-10
Chairman of the Board Viveck Goenka Group Editor-in-Chief Shekhar Gupta Managing Editor M K Venu Project Co-ordinator Akash Joshi Editorial Co-ordinators Sitanshu Swain, Ayesha Dominica Singh, Sushila Ravindranath Editorial Mahalakshmi Hariharan, Kumud Das, Saikat Das, Sajan Kumar Desk Ayesha Dominica Singh Research Team Sujith Pillai, Sandeep Nalge, Tara Boi Photographers A Srinivas, Mahindra Parikh, Vasant Prabhu, Prashant Nadkar, Ganesh Shirsekar, Dilip Kagda, Pradip Das, Ritika Jain Design Team Manoj Bhramar, P L Santosh, M P Singh, Rohnit Phore Marketing Co-ordinators The Express Group Space Marketing Team Production B R Tipnis & Team Printed for the proprietors, THE INDIAN EXPRESS LIMITED, by Ms Vaidehi Thakar at The Indian Express Press, Plot No. EL-208, TTC Industrial Area, Mahape, Navi Mumbai 400 710 and published from Express Towers, Nariman Point, Mumbai 400 021.

FE-EY

HE 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.

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M K VENU

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THE FINANCIAL EXPRESS

MARCH 2010

BRIDGES H I G H WA Y S TUNNELS TOLL -ROADS AIRPORTS R E A LT Y Conventional way IBR/Kautilya 133 .

As urban markets get adequately penetrated the competition to sustain and grow the market share. the goal of financial inclusion not only carries tremendous social appeal. Indian banking has remained resilient while continuing to provide growth opportunities. With the increased participation of new private sector and foreign banks. With rural development gaining a prominent position on government agenda. Competition will be further intensified with the proposed entry of new private players and non banking financial companies (NBFCs). even if it appeared conservative at times. As the world recovers from the global financial crisis. 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. Financial inclusion Given the sheer size of the unbanked population in India. 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. Positive changes witnessed in the last two decades have impacted every aspect of banking. the Indian banking industry has become fiercely competitive. awareness and aspirations of the rural population are bound to 6 . maintain margins will force banks to look for newer markets. While banks evolved their strategies in response to increasing competition and changing customer requirements.THEME STORY Illustration: ROHNIT PHORE Gamechangers in the Indian banking sector Viren H Mehta T HE Indian banking sector has emerged as one of the strongest drivers of India’s economic growth. aggressively tackling competition and social inclusion can go hand in hand. income. the regulator guided its growth with policies of gradual liberalisation and benchmarking the THE FINANCIAL EXPRESS MARCH 2010 domestic system with the best in the world. International experience with financial inclusion has sufficiently proved that achieving growth. ranging from regulatory standards to customer management. but also makes definite economic sense.

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the industry finds itself at the threshold of the next major technological leap. business correspondents even NGOs to deliver financial services and benefit from their reach. Risk management The 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. widening the scope of banking facilities. Another focus area is outsourcing of non-core functions and banks that manage these challenges will be able to differentiate themselves in the market. Upward direction of interest rates. possible only through consolidation. corporate governance and risk management. banks making investments in their human talent will reap the benefits. Quality risk management systems could very well act to the advantage of a bank in a country like India. Backed by political will and favourable economic variables. The financial turmoil also underlined the indispensability of the process of internal controls. The author is director Ernst & Young . offering different products and services not only suitable for different life stages of the client. Mobile banking With the onset of mobile banking. Use of information technology is another valuable tool. it will be essential for Indian banks to explore inorganic expansion within and outside India. the long impending objective to develop a few Indian banks of global scale is no longer based on surreal expectations. 8 THE FINANCIAL EXPRESS MARCH 2010 Conclusion The banking sector in India offers huge opportunities. technological advancements. and a nascent culture of credit information sharing. 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 . To be relevant on a regional or global basis. Deployment of a combination of multiple delivery channels capable of offering timely convenient and cost-effective services will stay ahead of the curve. Cost optimisation Multiple channels. Banks should target the optimal mix of channels to reach the right customers at minimal cost. attitude and knowledge of the employees have a substantial bearing in determining the competitiveness of a bank.THEME STORY increase. This essentially involves acquiring a customer at an early stage and then building a long-term relationship. varied customer profile and vast geographic spread have contributed to the increased distribution cost for banks. Banks are increasingly leveraging technology to achieve economies of scale in operations. improved performance and higher risk adjusted rate of return. Mbanking can be an effective tool for capturing the unbanked rural market as almost 50% of new mobile subscriptions come from rural areas. besides aiming for administrative efficiency . successful banks are adding a new dimension to customer engagement. To profitably stay in the race. A feasible option to explore would be to effectively partner with microfinance institutions. which need to be addressed to unleash the competitive advantage offered by the Indian banking sector and energise growth. market dynamics point towards attaining a sizeable scale and capital base. competition for human talent and efficient utilisation of a bank’s resources are some inherent challenges. especially in retail banking. M-banking offers significant cost-saving advantages by way of reduced transaction costs and is even expected to replace many delivery and payment systems. 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. Quality risk management systems could very well act to the advantage of a bank in a country like India. The large and ever-growing mobile base provides banks with the opportunity to offer services in areas where they have a limited branch presence. which has a shallow documentation of credit history. India Pvt Ltd. Banks quick to establish presence in the vast hinterland and customise financial products for the poor will capture growth opportunities. which has a shallow documentation of credit history reduce bad debts and raise collections. M-banking can be made more incisive if challenges such as awareness. banks are grappling with increased customer migration as switching costs are . Needless to say. Account-centric approach With rise is competition. effectiveness of mobile technology will drive regulations that allow greater use of this technology for banking transactions whilst effectively controlling it abuse. Consolidation To survive in an increasingly competitive environment. Human capital development The skill level. focus on financial inclusion. They are now adopting a complete account-centric approach. nearly negligible and product differentiation is replicated with ease. transparency and security issues are addressed efficiently The pervasive . local communities. increasingly demanding customers. This has led to customer understanding and superior service gaining tremendous prominence. This will in turn enable lower capital requirements. coverage in rural and semi-urban areas.

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Credit Quality. Profitability and Efficiency Considering the current .27 public sector banks. Ernst & Young has ranked the players with- in the Indian banking sector . 13 old private sector banks. new private and foreign banks face its own unique challenges ranging from credit defaults and restructuring of loans. However. the economic growth of India remained reasonably unscathed. liquidity. Despite the financial turbulence. each category of banks public. Considering these aspects. Growth. Five major criteria were selected to compare performance of the Indian banks. As ever. A gradual shift from "Managing Crisis" to "Managing THE FINANCIAL EXPRESS MARCH 2010 Recovery" is now the focus of regulatory strategy . old private. The Indian economy continued to grow at a decent rate as compared to the rest of the world. we believe every Indian bank would be evaluating itself and 10 . Liquidity problems and credit defaults have made banks more risk-averse.METHODOLOGY RATIONALE Illustration: ROHNIT PHORE Looking to strengthen & consolidate. the current crisis has exposed certain limitations and weaknesses. maintain credit quality & profitability Husain Diwan and Viren H Mehta T HIS year’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. scenario of Indian banking. These criteria are Strength and Soundness. reputation and dwindling net interest margins to technology and manpower. 6 new private sector banks and 12 foreign banks based on their natural genres. complimented with moderate economic growth.

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is assigned the weight of 0. Liquidity has been calculated based on the maturity pattern-upto one year of advances and investments less deposits and borrowings. Further. all these must be . it is important to evaluate a bank’s performance based on efficiency with which it has used its human. Credit Quality is once again a key factor on which Indian bank’s performance would revolve and is therefore selected as the second criterion. and greater need for financial inclusion. very high Capital Adequacy Ratio and Core Capital could also mean inefficient use of capital. Trust of the depositors on a bank and trust of the bank on its borrowers continue to form the foundation of the banking business. With the global meltdown and defaults in credit repayment due to liquidity and confidence concerns. Gross NPA/Gross Advances.15 respectively Capital . Growth is the third major criterion selected with an assigned weight of 0. Increase in Gross NPA/Increase in Gross Advances and Increase in Net NPA/Increase in Net Advances are the sub-criteria . it is only expected that there is a consequential impact on the financiers of the economy In .METHODOLOGY RATIONALE making peer comparison based on the major criteria selected as above. Restructured Loans. Credit Quality has re-emerged as a concern. Accordingly.20. In the environment of upward pressure on interest rates. these subcriteria were selected to measure banks based on their Strength and Soundness. However. The ability of a bank to absorb shocks is dependent on its strength and soundness. six sub-criteria have also been selected within each major criteria to cover the entire spectrum within each of the major criterion. Adequacy Ratio and Core Capital are powerful indicators of a bank’s inherent strengths. demanding customers. consumption loans. it is absolutely essential that banks operate and ‘sweat’ their resources efficiently . whereas. Networth and Total Assets. With India experiencing a recovery in many areas of the economy in the year gone by.20. Hence.20. in terms of Capital. it is imperative that the banks should have a minimum threshold in terms of size and adequacy of capital to reflect soundness and maintain an improved credit quality However. a weight of 0. Increase in Gross NPA. Therefore.25. but the leaders of the pack were required to stand out. 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. and restructuring of debt. portion of Borrowings as compared to Deposits and Liquidity represent soundness and stability of a bank. The slow economic growth experienced in FY09 was mirrored in the growth of Indian banks. Size.10 to Core Capital. technological and financial resources. these times.20 matching the imperative for banks to achieve growth combined with quality assets. Networth comprises both total capital and accumulated profits and accordingly. Intense competitive forces played a very important role in determining 12 THE FINANCIAL EXPRESS MARCH 2010 Viren H Mehta (left) and Husain Diwan of Ernst & Young banks’ strategies for market dominance. admittedly. Accordingly. The measure of this trust is the Strength and Soundness of a bank. Therefore. Profitability is . banking assets and earnings grew along with the entire economy. selected as the fourth major criterion and assigned a weight of 0. achieved whilst maintaining profitability Therefore. Banks are often compared using Total Assets as a benchmark.20 and 0. Adequacy of Capital. Efficiency has been selected as the last major criterion with a weight of 0. are indicators of the fundamental strength of a bank around the world. In the current economic context where efficiency in use of capital and effectiveness of deployment of deposits are more respected. Net NPA/Networth. As a result of greater emphasis on higher exposure to sensitive sectors. the weight for Credit Quality has been assigned a weight of 0.15 is assigned to Capital Adequacy Ratio and 0.15.20 is assigned to Total Assets. Hence. Strength and Soundness has been selected the first criterion to measure Indian banks with highest weight of 0. Therefore. a lower weight of 0. Accordingly.

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Hence. technological and financial resources be more efficiently deployed and leveraged. Additionally. ty of the bank to charge its customers for its services and augment the bottom line of the bank without requiring allocation of capital and hence reflects use of set organisation skills and network. introduced this year. and the rate of increase in net non-performing advances compared with the rate of increase in net advances are considered to be of relatively higher importance to a bank’s management. the success for the banking industry as well as individual institutions will be predicated on how banks will shape their strategies to support the Indian economy emerging from a slowdown. Networth. they evidence inherent credit weakness..METHODOLOGY RATIONALE selected to compare banks on Credit Quality The rate of increase in gross . Spread/Total Assets and Operating Expenses/Total Assets measure Efficiency in use of resources and these are assigned weights of 0. focus on improving these has also sharpened. increased expectation on perform- ance.15 respectively . Spread/Total Assets. the resultant top ranking banks were significantly the same. both these sub-criterion are equally important and are also assigned equal weights of 0. these sub-criteria are assigned the highest weights of 0.20. although these continue to be classified as performing. the portion of a bank’s gross advances comprising gross non-performing advances is assigned a lower weight of 0. non-performing advances compared with the rate of increase in gross advances. instead of lending.20. Cost of Deposits.10 that are a notch lower in comparison with other aforesaid sub-criteria. Therefore. Whereas Yield on Advances and Return on Investments are important. these sub-criteria are also assigned higher weights of 0. in the current interest rate scenario. improved technology platforms demand that the human.15 and 0. 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. Therefore. Profit Per Branch are selected as sub-criteria to measure Efficiency amongst banks in India. The increased competition for human and financial capital.20 respectively . Therefore. with the current stress on net interest margins due to current pressure on interest rates. the quantum of restructured loans. Going forward. Hence it is assigned a weight of 0. encompass the vastly under and un-banked regions and population and provide the much needed financing for Indian structure. we believe that in the current Indian environment. are the ones that create most value.20. Return on Networth. a notch lower in comparison. ers would closely focus on Return on Assets and Return on Shareholders’ Funds i. The results of the ranking are based on financial performance of banks during FY 2009.e.10. Net Profits. Non-Interest Income/Total Assets. Operating Expenses/Total Assets. followed by equal weights of 0. Return on Assets. Banks that are able to adapt quickly to the evolving economic environment.10.20 for growth in Advances and Net Profits. the above ranking methodology is most appropriate .10. Business Per Employee.10. banks are also focussed on mainte14 THE FINANCIAL EXPRESS MARCH 2010 nance of their networth. 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. 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 0.25 and 0. With implementation of standardised Basel II norms. different constituents of banks would focus at Cost of Deposits and managing costs.25 to assess Credit Quality The increase of Gross . Accordingly. Profit Per Employee.so much so that when stress tests were performed. the last two sub-criteria are assigned weights of 0. Cost-Income Ratio and Return on Investments are the subcriteria selected to measure banks based on Profitability The stakehold. Growth in Total Assets would not necessarily result from growth in banking operations as banks could use the safe-habour of government investment. Currently. these sub-criteria are assigned weights of 0. While some may not concur with the aforesaid dissertations. Success will be predicated on how banks shape their strategies to support the Indian economy emerging from a slowdown Accordingly. With the objective of garnering deposits and penetrating under banked areas and population. Thus. Business Per Employee and Profit Per Employee measure utilisation of human capital and are assigned weights of 0. this sub-criteria is assigned a weight of 0.10 respectively .15 and 0. NPA has been assigned the next level weight of 0. Further. Deposits. Advances. Net Interest Income (‘NII’) and Increase in Net Worth are selected as parameters for assessing Growth. Through this special regulatory accounting treatment. Yield on Advances. and networth rendered non-performing are the next important aspects of Credit Quality and are assigned the weights of 0. Growth in Total Assets.30. ◆ .

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20) (f) Spread/Total Assets (0.10) (c) Increase in Networth (0.000 crore have been excluded.000 crore compare favourably against larger banks. Also excluded are banks that merged their operations with other banks during 2008-09. Karan Shah and Vikas Kabra 16 THE FINANCIAL EXPRESS MARCH 2010 .20) (a) Yield on Advances (0.20) (f) Networth (0.15) (d) Operating Expenses/Total Assets (0. it is found that banks with total assets of less than Rs 5. were not considered for the rankings.15) (e) Profit per Employee (0. 8.10) (c) GNPA/Gross Advances (0.. industrial and over-all economic scenario. pertinent weights were assigned to each of the major criterion. new private sector banks (‘NPSB’) and foreign banks (‘FB’). 3.10) (d) Increase in Gross Non-Performing Assets (‘GNPA’) (0.10) (b) Return on Investments (0. pertinent weights were assigned to each of the sub-criterion. only the published information was used. These are primarily foreign banks that operate in India in a very limited manner.25) (a) Core Capital (0.20) (e) Increase in GNPA/Increase in Gross Advances (0. e. Including these banks often distort the results and thereby. Five different major criteria were identified against which the Indian banks were to be ranked.000 crore as on March 31. 2009 and banks that ceased to exist in India during 2008-2009.20) (iii) Growth (0. Banks were ranked.20) (e) Net Profits Growth (0. old private sector banks (‘OPSB’). banks with total assets less than Rs 5.g. With the objective of making the comparison more meaningful. The rationale for selecting each of the criteria and assignment of their respective weights is discussed in the above-mentioned article.15) (c) Borrowings/Deposit Ratio (0.30) (iv) Credit Quality (0.10) — Introduced this year (b) NNPA/Networth (0.20) (e) Return on Networth (0. it was deemed appropriate to determine a best bank within each of the major-criteria selected by us. render the ranking less meaningful. vie for the same customers and are faced with the same situation. but the banks were not spilt into their respective categories.METHODOLOGY RATIONALE FE-EY India’s Best Banks Survey Approach Framework 1. (iii) Growth.20) (f) Deposits Growth (0. To ensure consistency. (iv) Credit Quality. Here the same aforesaid process was followed. Six sub-criterion were selected within each of the aforesaid major criteria.15) (a) Non-Interest Income/Total Assets (0. Team Ernst &Young: Viren H Mehta. pursuant to the merger of State Bank of Saurashtra with State Bank of India. banks with total assets less than Rs 5. industrial and over-all economic scenario.10) (b) Business per Employee (0.20) The rationale for selecting each of the sub-criteria and assignment of their respective weights is discussed in above-mentioned article. which would cover the various aspects within the aforesaid criteria. 4.20) (e) Total Assets (0.10) (b) Capital Adequacy (0. The sub-criteria ranks were then multiplied by the major-criteria weights. category-wise. 2. Banks were categorised into public sector banks (‘PSB’).20) (a) Restructured Loans (0. since all the banks.25) (v) Strength and Soundness (0. While ranking banks of the aforesaid 30 parameters. Financial information for the year ending March 31. within each of the aforesaid sub-criteria.10) (b) Net Interest Income (‘NII’) Growth (0.10) (d) Advances Growth (0.15) (d) Liquidity (0. Tanvi Vedak.10) (c) Return on Assets (0. compete in the same market place. whereas the parameters of erstwhile State Bank of Saurashtra have been disregarded for 2009.20) (a) Total Assets Growth (0. As discussed in the abovementioned article. (ii) Profitability. Husain Diwan. Surendrakumar Mundra. These sub-criteria and their respective weights (in brackets) are: (i) Efficiency (0.20) (f) Cost/Income Ratio (0. These criteria are: (i) Efficiency. 6. the parameters of the merged entity are taken for 2009. irrespective of their ownership (category).15) (c) Profit per Branch (0. 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. 7. Considering the current banking. and (v) Strength and Soundness. Accordingly. 5. 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.25) (ii) Profitability (0. Considering the current banking. 2009 relating to each of the banks falling into the aforesaid categories was collected from the data available from the Reserve Bank of India.25) (f) Increase in NNPA/Increase in Net Advances (0.20) (d) Cost of Deposits (0.

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PUNJAB NATIONAL BANK NATIONALISED BANK RANK: 1 18 THE FINANCIAL EXPRESS MARCH 2010 .

This would require banks to enhance their capital and strengthen their balance sheets to be able to finance such projects and take a larger share. since our areas of operation are vastly different. The country is going to witness a dramatic increase in infrastructure spending as per the planned expenditure outlined in the 11th Five Year Plan. banks would need to consolidate. In addition. While we did grow. whenever the opportune time comes. Our conservative approach and robust risk management practices helped us to keep our profitability intact. Globalisation of Indian corporates has also put pressure on Indian banks to globalise and have a greater presence abroad. The fact that the bank is a second largest PSB gives you extra responsibility in the consolidation space. Punjab National Bank ‘We aspires to become a global bank’ Punjab National Bank (PNB) is fast emerging as a global financial powerhouse. London” in 2009. The excellent IT capabilities set up by the bank facilitate handling of larger volumes in an efficient way The . couple of years there is a healthy debate going on. The biggest Indian bank (SBI) is placed at the 76th position in terms of assets. we will not hesitate to make the right moves. The bank would also make efforts to sustain its leadership position amongst nationalised banks in all domestic operations. The bank’s corporate governance framework helped in meeting aspirations of various stakeholders in a transparent manner. though such moves need not be predatory alone.K R KAMATH. consolidation is the only way ahead. the crisis brought opportunities as well and PNB cashed in on those opportunities to convert them into business. let me also add that we are not in a hurry For the last . 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. To offer world class service to world class corporates and satisfy their demands for sophisticated products. Excerpts: The bank has really turned around and climbed upwards in the last two years in its performance. The bank also aspires to become a universal bank.500 billion. It would be worth mentioning that the list of 1000 World banks compiled by “The Banker. 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. with $256 billion. What is your future vision for the bank? The bank has envisioned ambitious growth targets for the period ending 2013. in adopting best risk management practices. the banks would need to strengthen themselves through consolidation. wherein the first rank has been bagged by Royal Bank of Scotland with an asset size of $3. 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. CMD. in implementing global best practice in corporate governance and corporate social responsibility and in HR policies. to be able to face competition from foreign players. ◆ THE FINANCIAL EXPRESS MARCH 2010 19 . Thus. it had nothing to do with the business of the private sector and foreign banks. The banks in India are very small as compared to the global banks and hence to become a global player. KR Kamath. 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. All these facilitated the bank’s superior performance. MD&CEO. 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. in financial inclusion. What are your plans on this. The bank was at the centre stage of operations when others moved away during times of crisis and downturn. 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. providing a complete range of financial services under one roof. which is ironing out the differences between various stakeholders on this issue. Rather. whether in the form of additional loans or even restructuring of some existing portfolios. Having said that. However. carries the names of only 32 Indian banks. they could be collaborative as well. sound fundamentals of the bank also lent support to the upward movement of the bank. 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. 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. The bank plans to grow its business to Rs 10 lakh crore by 2013 and increase its customer base to 15 crore.

Still. which was something new to public sector banks. Bank of Baroda speaks to FE’s Sitanshu Swain & Kumud Das about the turn around strategies of the bank. which need to be simplified.We are also expanding our overseas business. we took up a project of business process reengineering (BPR). Two-three very significant changes have been made at the bank over a period of three to four years. we are going to recruit 3. So. namely Bandra. Having a brand ambassador was itself a concept. We have seen our ATM hits go up. The idea is to make business development faster which is turn will boost productivity and finally. which have also contributed to a make-over of the bank. Basically. position to do marketing of products and services. One is on the technology side. What are your other agenda? Our balance sheet size till March. We are trying to learn from our experience at the pilot when we roll it out across our entire network.37.000 crore by March. We have a seen substantial number of Internet-based transactions happening in banking. Having put the technology in place. it is a BPR project. The project is known as Project Navnirman. I should put it on record that it is the good work done by my predecessors that has brought the bank to this level.00.000 officers. 2011. Crawford Market and Colaba and have implemented the project in those branches on a pilot basis. What are the new initiatives you have taken after you joined? Among many things. these positive developments have already taken place. CMD. ’09 was at Rs 3. ’10. Fifteen lakh customers will be added to our fold by March. 20 THE FINANCIAL EXPRESS MARCH 2010 We want to change the entire concept of work-flow at the branch. 2011. improve customer service. 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. This year. it is the next step to ensure that you harness the technology pattern for business growth through improving customer care services. We appointed McKinsy and the project has already begun. 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 . The change in the entire brand has helped us to develop strong visibility and unlock the value of the bank. we have taken two important initiatives.500 people including 2. The second project is known as Baroda Next. CMD. I am not compromising on the quality of assets. We have identified three branches in Mumbai.000 crore and it is likely to go up to Rs 4. which is being headed by an officer in the rank of a general manager.BANK OF BARODA NATIONALISED BANK RANK: 2 MD Mallya.05. Therefore we started searching for a consultant who could help us in realising this goal. Bank of Baroda ‘The whole idea of banking is changing’ MD Mallya. Second is the brand building exercise. Excerpts: How did the bank unlock its potential? The bank has great potential. We see it to be at Rs 5. we have now laid down norms on how banking should be done at a branch. Last year.000 crore by March. Hence. ◆ . This initiative was taken up by us during the last year itself. These three branches are now working on the new concept of customer service. Our whole focus is on the liability side.

THE FINANCIAL EXPRESS MARCH 2010 21 .

Quite a bit of the inflation is priced in the 8% and the general expectation is that it may go to 8. I don’t think there will be too much of a difference when the new system sets in. private demand and . not particularly shortterm yields. The government has clearly announced a lower borrowing programme and so one can expect a yield of between 8-8. banks may use the 90-day term deposit or the 180-day term deposit rate. I don’t see interest rates moving up systemically There might . 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. since liquidity is still in excess of Rs 70. depends on sentiment and how much they are able to control inflation.5%. inflation and increasing deposit rates.5% if they meet their commitment and depending on inflation being higher than that towards the end of the year. Some amount is there with the mutual funds as well. 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. So a bank is free to take the base cost of a 90-day deposit. short. so if .5% by June-July Unless something . they move up back there. In fact.5%. PNB may set it at 7%. The rate will move towards the lower side rather than the higher side. steady 30%. MD&CEO. the risk profile of clients and the liquidity available while lending. HDFC Bank ‘We are a delta on the Indian economy’ Steered by Aditya Puri. 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 9-9.000 crore in reverse repo. Both are safe. 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. it’s not the end of the world.and medium-term rates. which is the kind of increase we are expecting in overall yields. As for the marginal cost. even up to one or two years. may not go up.25 and 0. yields should not go up beyond this.HDFC BANK NEW PRIVATE SECTOR BANK RANK: 1 STRENGTH RANK: 1 GROWTH RANK: 1 Aditya Puri. Whether interest rates go up. have been a systemic shift had RBI said that banks would have to use the average cost of deposits to calculate the 22 THE FINANCIAL EXPRESS MARCH 2010 deposit cost. Will there be a big difference between the base rates of banks? Normally loans are priced either . We need to see what happens on liquidity inflation. He speaks with Shobhana Subramanian and Saikat Das of the Financial Express about interest rates. Even if we raise rates now. banks use the marginal rate so banks may opt for the marginal cost. But for a new loan. managing director HDFC Bank has grown at a . . Excerpts: How do you see the base rate taking shape? The base rate is not going to change the fundamentals of banking. untoward happens. because the basic business hasn’t changed. despite the hike in the cash reserve ratio. Would this increase hurt the demand for loans? No. The banks have been taking into account the tenure of the loan. The RBI is saying it wants greater transparency than what the BPLR provided. this is a function of excess liquidity in the market and also competition. So it’s possible SBI may set it at 8%. It’s hard to see a year ahead in today’s environment but we don’t see any big move in interest rates. over marginal cost or over average cost. So what happens is that the person borrowing a higher amount for a shorter tenure will get a cheaper rate. Now. possibly because a lot of lending has been done to the AAA corporate at below the BPLR. reflecting the increase in rates in the system at the long end. Where do you see interest rates headed in the next few months? Ten-year yield go up.

Retail demand for the system as a whole hasn’t been great but we are experiencing good demand. Not only is our CASA high.720 branches. Our business model is different. Actually the demand for . Drawdowns on investment have not happened. Essentially . HDFC Bank has an enviable CASA ratio of 52%. If GDP grows by 8%. and 70% of our cards are sold to our customers through branches as well. credit demand can grow by about 20% next year. so if GDP grows at 8%. we are a delta on the Indian economy ◆ . The reason we have 52% CASA is because deposits have been growing slowly so there’s the . HDFC Bank normally grows faster than the system. 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. 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. corporate borrowing but not a runaway pick up. This pick up is for working capital. denominator effect and once growth picks up we will need to borrow more fixed deposits. We just doubled our distribution network from 725 to1. They are an integral part of our strategy . it’s based on branches and that’s why we are comfortable with retail loans and our cost of funds. around 60% of our personal loans are sold through branches. it’s not sustainable. We have correspondent arrangements with people all over the Middle East and other parts of the world and are major players in NRI remittances. If production of cars increases by 30%. I would say our normal range for CASA is between 45 and 48%. Is this sustainable? No. home loans never faltered. THE FINANCIAL EXPRESS MARCH 2010 23 . demand for car loans will also increase.the GDP We are seeing some pick-up in . Companies say they are moving ahead on capex but we have to see greater evidence of it. Our asset growth is a function of GDP growth.

AXIS BANK NEW PRIVATE SECTOR BANK RANK: 2 24 THE FINANCIAL EXPRESS MARCH 2010 .

That’s something we take of when we do the appraisal. So the rural markets are definitely the markets of the future. it will be good for the market because it will inevitably grow the market. Especially if the bank has relatively well-matched assets and liabilities. nothing is absolute. So it’s something that we are focussed on and we will experiment with a couple of models. then we have to be open to lending to the sector. If there are some mismatches between the assets and liabilities. ◆ THE FINANCIAL EXPRESS MARCH 2010 25 . we don’t have a pricing mismatch issue. I think as opposed to the PLR. if we have players who have a track record and the desire to build a longterm high quality banking business. 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. when there were huge differences. as I said. if you look at the economy.Shikha Sharma. concentration risk and interest rate risk? One thing we do is to lend to multiple projects across geographies and sectors. How do you see the role of banks in infrastructure financing? We are a significant player in this space. But. MD&CEO. we are not at all embarrassed about going there. Also. because you cannot lend below the base rate. which are locked in based on the historical cost of funds. then the future is determined more by the marginal cost. which got narrowed out through discounts below the PLR now. In conversation with Shobhana Subramanian. So the marginal cost has to have higher weightage while setting the base rate. we have to grow where growth is going to come from. With regulatory changes that have happened and mobile technology becoming more mature. the MD and CEO observes that while new banking licences will help grow the market and benefit customers. Do you think that’s a good idea? Competition is always good for the customer but it also depends on the kind of competition. which we can use going into rural areas. The question is how do you manage both. The government plans to give new licences. 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. I think there is no a choice. So that’s the attempt. The regulator should ensure that there is a levelplaying field between the old and the new in terms of regulatory commitments. so anything that taps that opportunity and expands the market is good. So definitely base rates will be in a more narrow range but there will be differences based on banks’ strategies. the loans get repriced. The valid question is that it could get translated into a credit risk because of the floating rate. but we don’t really have a full-fledged model to take to the rural markets just now. So if infrastructure is going to grow faster than GDP. Axis Bank ‘Competition is always good for the customer’ It’s about a year since Shikha Sharma took over the reins at Axis Bank. a lot of real industry is finding that their growth is coming from rural markets. It all depends on the kind of players who come in. Axis Bank has strengths in this area. then perhaps the strategy may be somewhat mixed. Axis Bank has more of a presence in the tier II and tier III towns. so if it’s a high opportunity area and we have strengths. Nobody has any doubt that India will see strong growth in infrastructure. So we do have some learnings. I suspect there will be a narrowing. and if we are banks sitting in India. much would also depend on the kind of players who come in. The good thing about being in India is that we are in a high growth phase. much of the lending is done at a floating rate. So while they are of a long tenure. I think an assessment of where the base rates can settle will have to be decided closer to the date of implementation in July . 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. It depends on what kind of players come into the market. How does Axis Bank plan to tap the prosperity in the rural markets? Compared to our peers.

FEDERAL BANK OLD PRIVATE SECTOR BANK RANK: 1 26 THE FINANCIAL EXPRESS MARCH 2010 .

The bank. How do you propose to use IT in financial inclusion? Our credit card products are IT enabled. What business expansion plans do you have? As per the proposed branch expansion policy. The bank has currently 724 ATMs and has issued 2. in association with the YMCA. 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. However. Federal Bank attained a credit growth of 21% (including the segments of SME. The social scheme provides disadvantaged villages. Chairman. Our bank expects to attain a credit growth of 23% by March 31. we are yet to take any concrete decision on this. In Kerala itself. The General Credit Card (GCC) is also ATM enabled. Secondly. individuals. The adoption of villages has been done under the Samrudhi scheme. It aims to help improve the financial self-reliance and well being of villages. it has stuck to its strengths. What credit growth are you currently registering? In the last 10 months during the current fiscal.M VENUGOPALAN. individuals. We are in the process of establishing the ‘Federal Bank YMCA Training and Guidance Centre’ in the Wynad district. Being a focussed bank. of which. We have been trying for the integrated development of villages. In the last calendar year. What are your future goals? We have a set of three-pronged objectives. we want to emerge as a prominent lender in the industry for the common people. Federal Bank speaks with Saikat Das and Akash Joshi of the Financial Express about financial inclusion. 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. we want to be Kerala’s Number 1 bank. Federal Bank ‘We want to emerge as a prominent lender to the common man’ South India basedFederal Bank has had a consistent track record of growth and profitability. This facility will be used by the bank to provide training to micro and small entrepreneurs. Kisan Credit Card (KCC) accounts are ATM enabled with the ‘Federal Haritha Card’. we are open to any potential acquisition at a reasonable price.910 general credit cards. which has only a representative office in Abu Dhabi. The bank now wants to expand its operational scope greogrpahically and also through product development. Firstly. with a balance of Rs 577. It is high time the Indian banking industry go in for consolidation. every family is covered by a bank account. we aim to open around 60 more branches all over India in FY 2010-11. 2009. Excerpts: In line with increased government focus on financial inclusion. we have taken up 15 villages till March. we want to be identified for niche products like SME banking. M Venugopalan. chairman. ◆ THE FINANCIAL EXPRESS MARCH 2010 27 . what efforts are you moving on that front? Our bank has currently 676 branches across the nation. families and communities who are financially vulnerable or at risk of becoming financially vulnerable. surpassing the State Bank of Travancore. Kerala. The scope of Samrudhi was enhanced recently through the Samrudhi Financial Management Program (SFMP). In the current year. In Kerala. and finally. It might be seeking regulatory permissions in the middle term for the same. The bank is in the process of introducing the ICT-based banking correspondent model in the Alleppey District of Kerala. families and communities. it has 391 branches. Further.59 lakh till December 31. we developed 10 villages. retail and corporate) surpassing Reserve Bank’s targeted credit growth of 16%. We help them plan activities beneficial to the holistic development of villages. 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. with the tools and resources to manage a financial crisis and overcome hardship. 40% are in rural areas. the banks efforts towards reaching out and imparting financial education. has plans to go global. All branches are connected under the core banking system.

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TAMILNAD MERCANTILE BANK OLD PRIVATE SECTOR BANK RANK: 2 30 THE FINANCIAL EXPRESS MARCH 2010 .

MD&CEO. We believe that through identifying credit-worthy retail proposals. the bank finds huge opportunities and the delinquency rate is considerably less due to its cautious approach. As a result. During the next fiscal we would also provide special focus for CASA by giving specific targets to rural and semi urban branches to canvass SB deposits aggressively. Our strategy is to focus on corporate and retail business. education. including home. the controversy over the ownership issue of the bank and other things. 2010. The bank already has a lending portfolio of 37% to corporate credit. 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. In the retail segment. 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.000 new customers. the bank was able to mobilise Rs 402 crore of CASA deposits. Excerpts: Being a small bank with a more regional flavour. as well as the preparation to expand the revenue streams for sustainable growth. which will help in bringing down the cost of deposits. stands in the changing atmosphere. in the sense that it will be adjudged not only as the best bank but also the fastest growing bank under each parameter. I feel that the ownership issue is resolved by the competent court. NEFT. Corporates would be approached for canvassing salaried accounts with a bouquet of services leveraging the fullest use of technology: anywhere banking. the bank can expand its retail credit without being aggressive. As the bank has 216 branches across the country. TMB is concentrating on building safer and more remunerative assets. 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. Efforts will be made to make the bank more dynamic. The bank has 24 retail schemes in the market and four or five schemes. 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. How is the year shaping up? A thorough understanding of the prevailing market and customers’ changing requirements. The full results of various initiatives are expected to reflect in the bank’s current year balance sheet. Our incremental CD ratio over March 2009 works out to 136%.55% as on February 28. With enhancement in the level of corporate governance after holding the AGMs and stability in its operations and consistency in earnings. which works out to 24% of the total deposits with the existing branch network. CASA has become the mantra of the bank. The bank identified retail as one of the strategic areas for growth. which would fetch a mix of quality and high yielding assets. MD & CEO. Tamilnad Mercantile Bank ‘Small-sized banks play a significant role’ G Nagamal Reddy. The bank has already built a retail asset portfolio of 63%. whereas metro and urban branches would be urged to concentrate on current accounts. e-payment etc. The speed in delivering corporate and retail credit is another areas the bank has planned to concentrate on. which shows our aggressive growth in advances. The bank has also entered into a MoU with CRISIL for rating SME borrowers.53% in the year 2008 to 3. the mantra of CASA was echoed in 12 states and in the hearts of 2. debit card. expectations and the efforts taken by employees at all levels to meet the expectations of customers. car and SME credit. the bank decided to improve the CASA component. ◆ THE FINANCIAL EXPRESS MARCH 2010 31 . an increase of 19% growth over March 2009.250 TMBians. which is due to the increased focus on building low cost liabilities and high yielding assets in SME and retail sectors.G Nagamal Reddy. The bank is harnessing its strength of technology Customers .86. 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. How are you planning to improve your net interest margins? The bank witnessed a net interest margin of 3. the bank will be able to provide better value addition to its stake holders. Tamilnad Mercantile Bank speaks with Sajan Kumar of the Financial Express about being a small bank with more regional flavour where TMB . net banking.37% in the year 2009. the bank added 1. expect a major change in our bank both in terms of capital structure and services. Our regional presence and sense of belonging have given us a prime position. 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. Has the controversy over the ownership issue been settled? Since the new board is in place and the pending AGMs for the years 20082009 have also been held. Plans are on to open specialised branches at metros to take focussed care of the credit requirements of corporate establishments. RTGS. 2009. CASA has improved by 19% when compared to the previous year ended March 31. would work well for building a new brand image and health for the bank.

JP MORGAN CHASE FOREIGN BANK RANK: 1 EFFICIENCY RANK: 1 32 THE FINANCIAL EXPRESS MARCH 2010 .

auto credit and also understanding the customer. We have a relationship with a lot of fund houses that are investing across the globe. helping companies raise debt and equity. we were the number one player across the ECM business. we run the investment banking division. 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. trade finance and custody services. funding for their overseas businesses. sometimes even to credit on the back of their parent support. trade finance and custody business. The second part is Indian companies that are increasingly globalising. JP Morgan runs various businesses like providing companies with cash management services. followed by the equity institutional broking business. which not only covers Indian funds that are dedicated to investing in India or emerging markets that are investing in 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). managing cash across geographies and across trade finance and currencies. client flows. 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. CEO. The small corporate businesses have affiliates and subsidiaries in India. What is your share in the market? We track our market share across all our businesses. The other is off-shoring. So. Retail credit is not something we are looking at. This includes proprietary trading. In the institutional broking business. CEO. Thus. Then. 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. Speaking with Mahalakshmi Hariharan from The Financial Express. we would help them out. Are you looking at entering the retail space? We believe that retail banking is something that you can cover out of mass banking. we have a dedicated sales force. The third set of clients are what I call ‘local local’. mortgages. We will be a niche player in this segment. asset management and wealth management business and treasury securities and services. Kalpana Morparia. Last year. which is less than 500 people and I don’t see that growing beyond a little over that number. If you think about several large companies that have their subsidiaries here. we were in the top four. These are a part of our markets related businesses. We cover them through our custodian business and the institutional broking business. there is cash management and trade finance across the board. derivatives collateral management (DCM) and mergers and acquisitions (M&A). Within the treasury securities and services. When they want to raise capital or do an M&A transaction. Investment banking comprises of the markets business. constituting fixed income and commodities. hybrid and high yield debt for Indian companies. The kind of distribution that they have and their ability to build a great recovery mechanism is also something very unique. Excerpts: Which are the businesses that you would like to focus on in India? In India. In the M&A space. not too many deals happened last year. we deal a lot with all the major funds. We also have a large corporate finance and coverage business. On the investor side. forex flows and forex derivatives. on the transaction banking side. it is normally transaction banking and custody. where we will continue hiring. ◆ THE FINANCIAL EXPRESS MARCH 2010 33 . giving a platform to corporates and investors for cash management. We believe that Indian banks have a very unique proposition to deal with the customers in managing deposits. 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. This is because they are in constant need of acquisition financing. but we believe we would have been in the top two or three. JP Morgan ‘We will cater with a suite of services’ In India. which covers equity capital markets (ECM). So. we look at the market share in context with foreign players. We have the global corporate bank. we have a small principle investment business where we commit JP Morgan’s capital to take positions in equity. we feel that they will always be superior to foreign banks. who need coverage for cash management to remittances. which is a joint venture between investment banking and transaction banking. we would be the typical banker that would cover them.KALPANA MORPARIA. In some of the transaction banking business and DCM businesses that we do. What are your hiring plans? We have two sets of employees in the bank-one is the business. investment banking.

However.CITI FOREIGN BANK RANK: 2 PROFITABILITY RANK: 1 MARK T ROBINSON. The Reserve Bank of India is faced with a situation where growth is accelerating. we have rigorous parameters for structural liquidity and lay a lot of emphasis on CASA and other noninterest bearing sources. ◆ . whereas in the corporate portfolio. We consider the local commercial bank catering to the middle market segment as a key to our future growth. lending is based on a careful evaluation of collateral. CEO. Much of this is consistent with whatever is happening in Citi globally . We drew up a strategic plan with an emphasis on the sectors where we saw our natural strengths. including credit cards in non-target segments. I think RBI will continue to display the balance it always has in adjusting these monetary instruments to maintain the right balance. Our businesses are fit to be executed with our expansion plans. high quality. CEO. efficient banking franchise. Our retail and corporate lending strategies are driven by this approach. while market forces work towards a convergence of base rates across banks. We will be growing our securities and banking business and transaction banking business in the Institutional Clients Group. In addition to the capital that we deploy in our banking business. including investing in world-class technology platforms. 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.8 billion of capital in the franchise between the bank and other legal vehicles. Even during the peak of the global credit crisis we were open for business and continued to grow assets judiciously in our target segments. 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. we follow the principles of prudent lending and providing value added and innovative cards and asset products to our customers. we are committed to substantial capital for proprietary investments. We continue to provide a stronger customer-centric value proposition to our retail wealth management and credit cards businesses. 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. Over the last few years we have consistently retained our earnings and infused close to $1. Speaking with Shobhana Subramanian and Mahalakshmi Hariharan of the Financial Express. Citi ‘We wish to be an efficient franchise’ In the recent past. With respect to the cost of funds. 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 are amongst the best capitalised banks in the industry as indeed are our non-bank finance companies. 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. Citi reveals his plans for the future. where we are focussing on a wellcalibrated growth strategy. Our stated objective is to be the industry-leading premium. as also the retail consumer bank. We will continue to meet the needs of our corporate clients through a combination of balance sheet items and innovative structures. Mark T Robinson. as is inflation. cash flows. 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. 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. We continue to go slow on unsecured retail credit. 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 . On the retail banking front. including liabilities and asset products. obligor quality and other criteria. We remain focussed on our key target consumer markets with products and services that bring value to our retail customers. we are seeing a steady shift to secured lending in our consumer portfolio. 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. 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 34 THE FINANCIAL EXPRESS MARCH 2010 returns from our asset products and the cross-sell it generates at a firm level.

THE FINANCIAL EXPRESS MARCH 2010 35 .

INDUSIND BANK CREDIT QUALITY RANK: 1 36 THE FINANCIAL EXPRESS MARCH 2010 .

we finance 40. In 2008-09. we plan to hire 700 people for branch banking and 900 in the area of consumer banking (sales operations and risk management). which constituted 12% of total recruitment the last time. In 2009-2010. wherein advances are Rs 19. The latest regulations have given banks the freedom to open branches in the tier III and tier IV centres with population below 50. employee reference programme and through head hunters. Financial inclusion. 2011 adding to our existing 210 branches across India. we hired 900 people. You must have the infrastructure to manage risks and to support your growth.000 crore.000 without seeking permission from the Central Bank. including credit risk. We give a lot of three wheeler loans in rural areas. then it is a loss making proposition. including vehicle financing. Risk management has to be harsh. We will probably end up with a 27-28% loan growth by March. commercial vehicles and off-the-road construction vehicles. ◆ THE FINANCIAL EXPRESS MARCH 2010 37 . Excerpts: What kind of growth have you witnessed in your business? We have a total balance sheet of Rs 33. Are you expanding your branch network? We have plans to open 120-150 more branches by March.000 crore. MD & CEO. We are strong in the area of micro financing. its risk management practices and its hiring plans. IndusInd Bank ‘Financial inclusion plans are profitable’ Romesh Sobti. If you treat financial inclusion as an obligation to be met at the end of the year. Our credit growth will be evenly distributed across corporate and consumer lending. unless it is embedded in business. IndusInd Bank. By the end of the next fiscal. We have zero delinquencies. 2010. How focussed is the bank on risk management practices? All areas of risks. 40% is retail. including two/three wheelers. first put up the risk management pillars: market risk and operational risk.000 vehicles every month. We are small in the home and commercial vehicle segments. operational risk and market risk must be well-managed. Under the retail part. While 60% of our loan book is corporate. we hired 1. We provide loans to village women through micro-financing schemes. We call it ‘feet on street’. We are focussed on the north. We have a wide distribution network and inherited this structure from the merger of Ashok Leyland Finance. Most of our hiring is done through "Indus Parichay" (our own recruitment scheme). The growth under IndusInd comes under the risk management umbrella. What are the bank’s hiring plans? We have always remained robust in hiring. For half of these new branches we don’t need RBI’s approval. speaks with Saikat Das of the Financial Express regarding the bank’s growth. west and south.Romesh Sobti. We have a presence in the North East as well. Are operations in remote places profitable? It can be profitable. We are expecting a credit growth of 25-30% in FY2011. But if you work on it through out the year as a business plan. I have seen many financial Tsunamis like this in my 35-year career.500 people. The lessons from this boils down to the fact that if you are running a growth organisation. under which we recruit sales people. among other things. it can be profitable. For our consumer banking we will hire more. MD&CEO. is a lossmaking proposition.

5 19 21 22 27 1 8 3 6.5 6 1 5 7 12 9 2.5 18 15 27 17 9 11 22 26 25 16 20 19 24 23 Efficiency 9 3 6 2 1 4 7 10 14 11 13 15 8 20 12 5 18 19 21 16 26 24 17 25 22 27 23 Credit Quality 1.5 26 24 8 9 27 10 19 13 17 21 18 14 11 7 16 15 12 25 23 Final Rank 2009 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Best Nationalised Banks Punjab National Bank Bank of Baroda Indian Bank Corporation Bank Bank of India Union Bank of India State Bank of Travancore Oriental Bank of Commerce State Bank of India Canara Bank Punjab & Sind Bank Andhra Bank Indian Overseas Bank Syndicate Bank State Bank of Hyderabad IDBI Bank Allahabad Bank Dena Bank State Bank of Bikaner & Jaipur State Bank of Patiala Central Bank of India UCO Bank State Bank of Indore Bank of Maharashtra State Bank of Mysore United Bank of India Vijaya Bank Best New Private Sector Banks HDFC Bank Axis Bank YES Bank ICICI Bank Indusind Bank Kotak Mahindra Bank 1 4 6 2 5 3 1 2 3 6 4 5 2 1 3 4 6 5 4 3 1 2 6 5 4 3 2 6 1 5 1 2 3 4 5 6 Best Old Private Sector Banks Federal Bank Tamilnad Mercantile Bank Karur Vysya Bank City Union Bank Jammu & Kashmir Bank Dhanalakshmi Bank South Indian Bank Karnataka Bank Lakshmi Vilas Bank ING Vysya Bank Bank of Rajasthan Catholic Syrian Bank Development Credit Bank 1 5 6 9 3 8 2 4 12 11 7 10 13 3 5 8 4 9 1 7 10 2 6 12 11 13 4.5 22 16 14 17 18 25 8 21 15 20 6.5 20 15 14 6 24.5 9 7 6 13 12 8 11 10 1 5 4 3 2 8 7 6 13 9 10 12 11 6 1 2 5 9 3 11 8 4 7 10 12 13 1 2 3.SEGMENT-WISE LEADERS Strength & Soundness 1 5 2 4 10 9 12 11 3 6.5 2 3 1 4.5 12 23 16 26 11 24.5 5 6 7 8 9 10 11 12 13 Best Foreign Banks JP Morgan Chase Bank Citi Bank of America Barclays Bank Standard Chartered Bank DBS Bank Caylon Bank BNP Paribas HSBC Bank of Nova Scotia Deutsche Bank ABN Amro Bank 8 2.5 11 4 10 | 7 5 11 1 3 2 10 4 6 8 9 12 1 2 3 11 5 7 4 6 8 10 9 12 2 4 1 9 11 8 3 7 10 6 5 12 2 9 4 7 6 5 3 8 12 1 11 10 1 2 3 4 5 6 7 8 9 10 11 12 38 THE FINANCIAL EXPRESS MARCH 2010 .5 2 4 5 21 13 14 12 10 6.5 3.5 26 24 23 27 13 19 Name Growth Profitability 5 2 13 10 4 3 17.5 8 1 9 7 17.5 4 5 6 20 22 3 1.

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5 43.5 27.5 48.5 35.5 38.TOPPERS OF THE FIVE KEY PARAMETERS Strength and Soundness Name HDFC Bank Punjab National Bank Barclays Bank Indian Bank Corporation Bank ICICI Bank Federal Bank State Bank of India State Bank of Travancore United Bank of India HSBC Citi Bank of Baroda Canara Bank Kotak Mahindra Bank Central Bank of India Allahabad Bank Bank of India Tamilnad Mercantile Bank Union Bank of India Jammu & Kashmir Bank Deutsche Bank South Indian Bank Axis Bank Oriental Bank of Commerce Karur Vysya Bank Karnataka Bank Standard Chartered Bank Dhanalakshmi Bank Indian Overseas Bank State Bank of Bikaner & Jaipur Syndicate Bank JP Morgan Chase Bank Andhra Bank State Bank of Hyderabad DBS Bank Vijaya Bank Bank of America City Union Bank YES Bank State Bank of Patiala Punjab & Sind Bank Dena Bank State Bank of Mysore UCO Bank Bank of Maharashtra Indusind Bank State Bank of Indore Catholic Syrian Bank Bank of Rajasthan IDBI Bank Development Credit Bank Lakshmi Vilas Bank Bank of Nova Scotia BNP Paribas Caylon Bank ING Vysya Bank ABN Amro Bank Rank 2009 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35.5 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27.5 29 30.5 41 42 43 44 45 46 47 48.5 40 41 42 43.5 50 51 52 53 54 55 56 57 58 Name Growth Rank 2009 1 2 3 4 5 6 7 8 9 10.5 30.5 37 38 39.5 32 33 34 35 36 37 38.5 45 46 47 48 49 50 51 52 53 54 55 56 57 58 Name HDFC Bank Barclays Bank Axis Bank Dhanalakshmi Bank State Bank of India Bank of Baroda Union Bank of India IDBI Bank Bank of India Punjab National Bank Lakshmi Vilas Bank YES Bank Oriental Bank of Commerce Punjab & Sind Bank Canara Bank Corporation Bank UCO Bank Dena Bank Federal Bank City Union Bank Indian Bank DBS Bank State Bank of Hyderabad Indusind Bank State Bank of Patiala Tamilnad Mercantile Bank Syndicate Bank State Bank of Travancore Andhra Bank ING Vysya Bank Bank of Maharashtra South Indian Bank Indian Overseas Bank BNP Paribas State Bank of Mysore Citi JP Morgan Chase Bank Standard Chartered Bank State Bank of Bikaner & Jaipur United Bank of India State Bank of Indore Allahabad Bank HSBC Karur Vysya Bank Central Bank of India Bank of Nova Scotia Jammu & Kashmir Bank Caylon Bank Vijaya Bank Karnataka Bank Deutsche Bank Catholic Syrian Bank Bank of America Bank of Rajasthan Kotak Mahindra Bank ICICI Bank ABN Amro Bank Development Credit Bank Profitability Citi Standard Chartered Bank HSBC JP Morgan Chase Bank Bank of India Caylon Bank Punjab National Bank DBS Bank Indian Bank Bank of America Deutsche Bank BNP Paribas Axis Bank Union Bank of India State Bank of Travancore YES Bank HDFC Bank Corporation Bank Bank of Nova Scotia City Union Bank Indian Overseas Bank Tamilnad Mercantile Bank Federal Bank Dena Bank Bank of Baroda Jammu & Kashmir Bank Karur Vysya Bank Andhra Bank State Bank of Bikaner & Jaipur Punjab & Sind Bank State Bank of India State Bank of Hyderabad Canara Bank State Bank of Indore Karnataka Bank Syndicate Bank ABN Amro Bank Allahabad Bank South Indian Bank Dhanalakshmi Bank Bank of Maharashtra State Bank of Mysore Barclays Bank Oriental Bank of Commerce ICICI Bank Kotak Mahindra Bank State Bank of Patiala ING Vysya Bank Bank of Rajasthan Vijaya Bank United Bank of India Lakshmi Vilas Bank UCO Bank Catholic Syrian Bank Central Bank of India Indusind Bank Development Credit Bank IDBI Bank 40 THE FINANCIAL EXPRESS MARCH 2010 .5 10.5 39.

5 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 Name Credit & Quality Rank 2009 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 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 46 47 48 49 50 51 52 53 54 55 56 57 58 Indusind Bank Bank of Nova Scotia Punjab National Bank Oriental Bank of Commerce Bank of Baroda State Bank of Travancore Indian Bank Corporation Bank Tamilnad Mercantile Bank JP Morgan Chase Bank Andhra Bank UCO Bank Syndicate Bank Punjab & Sind Bank Caylon Bank Central Bank of India Bank of America Dhanalakshmi Bank State Bank of Mysore IDBI Bank Karur Vysya Bank Lakshmi Vilas Bank YES Bank State Bank of Patiala Bank of Maharashtra Allahabad Bank DBS Bank City Union Bank Axis Bank ING Vysya Bank State Bank of Indore State Bank of Bikaner & Jaipur Federal Bank Bank of India State Bank of Hyderabad Dena Bank Union Bank of India HDFC Bank Karnataka Bank Bank of Rajasthan Vijaya Bank South Indian Bank BNP Paribas Jammu & Kashmir Bank Canara Bank Standard Chartered Bank Catholic Syrian Bank United Bank of India Kotak Mahindra Bank State Bank of India Deutsche Bank HSBC Indian Overseas Bank Barclays Bank Citi Development Credit Bank ABN Amro Bank ICICI Bank THE FINANCIAL EXPRESS MARCH 2010 41 .Efficiency Rank 2009 1 2 3 4 5 7 7 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25.5 19.5 28.5 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 Name JP Morgan Chase Bank Bank of America Caylon Bank DBS Bank Bank of Nova Scotia Citi Deutsche Bank BNP Paribas HSBC Standard Chartered Bank Federal Bank Axis Bank Bank of India YES Bank Corporation Bank Barclays Bank ICICI Bank IDBI Indian Bank Tamilnad Mercantile Bank Bank of Baroda Karur Vysya Bank Union Bank of India Punjab National Bank State Bank of Travancore Jammu & Kashmir Bank City Union Bank Indian Overseas Bank ABN Amro Bank HDFC Bank Oriental Bank of Commerce Canara Bank Punjab & Sind Bank State Bank of Hyderabad Andhra Bank Kotak Mahindra Bank State Bank of India Karnataka Bank State Bank of Indore State Bank of Patiala South Indian Bank Allahabad Bank Dena Bank Indusind Bank Syndicate Bank State Bank of Bikaner & Jaipur Dhanalakshmi Bank State Bank of Mysore Vijaya Bank UCO Bank ING Vysya Bank Development Credit Bank Bank of Maharashtra Catholic Syrian Bank Central Bank of India Bank of Rajasthan Lakshmi Vilas Bank United Bank of India Rank 2009 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19.5 21 22 23 24 25 26 27 28.5 25.5 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42.5 42.

62 12.955 (113.53 13.22 13.084.020) (1.05 14.748) (293.650) (1.69 12.01 12.190) (851.58 11.81 6.11 7.48 8.970 (811.138) 1 6 3 5 2 4 Best Old Private Sector Banks 1 2 3 4 5 6 7 8 9 10 11 12 13 Federal Bank South Indian Bank Jammu & Kashmir Bank Karnataka Bank Tamilnad Mercantile Bank Karur Vysya Bank Bank of Rajasthan Dhanalakshmi Bank City Union Bank Catholic Syrian Bank ING Vysya Bank Lakshmi Vilas Bank Development Credit Bank 20.38 6.07 13.38 12.071.29 13.38 13.323) (158.60 12.434.479.93 13.61 14.52 9.560) (1.42 13.900) (512.42 9.858) (169.81 11.269) (446.52 13.60 15.151 (685.013) (727.10 14.27 15.19 13.01 13.22 14.94 6.80 10.729 (347.607) (174.98 14.38 8.250) (95.57 11.42 14.01 6.751) (2.53 20.5 12 10.795.507 393.65 10.363.801) 70.919.5 4 5 6 7 8 9 10 11 12 Barclays Bank Citi HSBC Deutsche Bank Standard Chartered Bank Bank of America DBS Bank JP Morgan Chase Bank BNP Paribas ABN Amro Bank Bank of Nova Scotia Caylon Bank 17.99 11.198) (914.76 14.23 15.46 11.12 14.288) (656.821) (8.20 1 7 4 5 12 9 3 2 11 10 6 8 16.838) 105.66 13.50 1 6 4 9 2 3 13 5 8 10.75 11.91 6.55 12.20 14.361) (1.981) (2.544.5 12 15 1 14 21 27 16 22 23 2 24 10 26 25 11 8.97 8.5 7 (675.724.90 12.195 (213.50 15.27 13.49 8.147.98 14.90 8.057) (78.561) 279.10 13.01 8.5 6.5 2.12 13.29 11.84 16.372 (6.91 9.730) (326.35 12.48 16.48 7.37 4 1 2 6 9 14 22 13 12 5 3 8 19 16 10 7 17 21 18 23 25 11 27 15 24 26 20 (1.506) (131.15 12.708 (175.839 (1.456) (2.44 6.40 6.CATEGORY STRENGTH & SOUNDNESS Rank 2009 Capital Adequacy % Core Capital % Liquidity Rs Lakhs Name Ranks Ranks Ranks Best Nationalised Banks 1 2 3 4 5 6.23 10.816) 589.43 10.032.5 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Punjab National Bank Indian Bank State Bank of India Corporation Bank Bank of Baroda Canara Bank Central Bank of India Allahabad Bank Union Bank of India Bank of India Oriental Bank of Commerce State Bank of Travancore United Bank of India Indian Overseas Bank State Bank of Bikaner & Jaipur Andhra Bank Syndicate Bank State Bank of Hyderabad Vijaya Bank State Bank of Patiala Dena Bank Punjab & Sind Bank Bank of Maharashtra State Bank of Indore IDBI Bank UCO Bank State Bank of Mysore 14.88 9.069.10 8.03 13.100) (4.31 15.928.38 7.89 8.37 12.11 13.22 12.67 7.472.74 6.251) (152.05 13.687) (778.827) 105.81 6.85 7.504) (447.33 16.932) (207.26 7.5 8 3 9 5 4 17 18 13 19 20 6.69 12.68 11.067) (122.199) (4.19 8.50 3 2 1 5 6 4 3.38 8.25 13.69 15.73 15.583) 13 2 10 9 7 11 1 5 8 3 12 4 6 Best Foreign Banks 1 2.98 11.88 8.983 1 10 12 7 8 2 6 9 3 11 4 5 42 THE FINANCIAL EXPRESS MARCH 2010 .80 1 5 4 3 11 6 8 2 10 12 7 9 391.497) (1.28 13.13 9.76 8.410) (2.25 11.497) 39.07 14.14 7.417.146) 179.579) (2.60 3 4 1 5 6 2 10.38 14.62 7.30 1 5 6 7 2 4 12 3 9 10 11 13 8 18.125.612 24.585) 15 10 27 3 25 19 9 7 16 21 24 1 2 18 11 17 23 4 20 14 8 12 13 6 26 22 5 Best New Private Sector Banks 1 2 3 4 5 6 HDFC Bank ICICI Bank Kotak Mahindra Bank Axis Bank Indusind Bank YES Bank 15.667.56 7.59 7.70 15.800 1.46 8.351.887) (109.03 13.537) 59.92 11.48 13.920) (3.562 (281.

749.846.240.255 699.290.769.362 713.034 251.781 1.097.123 982.777 641.074 1.535 1.487 9.5 11 6 23 12 15 10 21 8 9 1 25 2 19 27 13 26 24.094 90.84 51.681 274.80 5.771 489.567 7.765.051 4.556 6 1 3 5 2 9 7 8 10 4 11 12 500.68 8.31 523.151.164 165.459 1.88 30.432 476.053.579 2 15 1 14 3 5 8 13 7 4 11 22 20 10 24 18 9 16 19 17 23 25 21 27 6 12 26 1.526.73 7.071 12.185 135.544 4.12 7.691.699 501.206 585.283.921 13.673 21.24 2.027.586 130.340 4.5 24 16.181 4.443.964.481 166.092 38.077 37.166.035 3.5 18 20 3 7 16.053 251.189 6.946.379 5.73 1.051 6.345 224.801 16.329 1.10 2.288 45.370 217.554 1.551 22.048.448 942.096 2.79 1.302 1 5 2 4 8 7 6 13 9 11 3 10 12 432.021.93 3.439 162.871.93 16.44 10 9 11 5 7 6 4 2 2 2 13 8 12 3.050 214.465.558 42.00 2.260 6.54 2.80 2.92 0.74 8.352 3.579 86.104 2 10 1 14 4 5 11 12 7 3 8 23 20 9 26 16 13 17 18 19 24 25 21 27 6 15 22 Punjab National Bank Indian Bank State Bank of India Corporation Bank Bank of Baroda Canara Bank Central Bank of India Allahabad Bank Union Bank of India Bank of India Oriental Bank of Commerce State Bank of Travancore United Bank of India Indian Overseas Bank State Bank of Bikaner & Jaipur Andhra Bank Syndicate Bank State Bank of Hyderabad Vijaya Bank State Bank of Patiala Dena Bank Punjab & Sind Bank Bank of Maharashtra State Bank of Indore IDBI Bank UCO Bank State Bank of Mysore 1 2 3 4 5 6.722.349.16 102.903.107.02 0.422 2 1 4 3 5 6 HDFC Bank ICICI Bank Kotak Mahindra Bank Axis Bank Indusind Bank YES Bank 1 2 3 4 5 6 2.45 15.580 14.493 740.028 1.764.401 262.44 7.833 1 6 2 4 8 5 7 12 9 13 3 11 10 Federal Bank South Indian Bank Jammu & Kashmir Bank Karnataka Bank Tamilnad Mercantile Bank Karur Vysya Bank Bank of Rajasthan Dhanalakshmi Bank City Union Bank Catholic Syrian Bank ING Vysya Bank Lakshmi Vilas Bank Development Credit Bank 1 2 3 4 5 6 7 8 9 10 11 12 13 18.5 4 5 6 7 8 9 10 11 12 THE FINANCIAL EXPRESS MARCH 2010 43 .208.06 8.5 2.46 96.83 37.54 1 5 6 3 2 4 18.33 1.862 8.65 0.220.068.78 0.977 4 1 2 5 3 6 10 7 9 8 12 11 Barclays Bank Citi HSBC Deutsche Bank Standard Chartered Bank Bank of America DBS Bank JP Morgan Chase Bank BNP Paribas ABN Amro Bank Bank of Nova Scotia Caylon Bank 1 2.67 35.14 1.719 156.002 320.5 6.285.885.462.327.570 661.34 0.42 3.09 0.020 6.187 14.10 84.282 925.287 156.799 3.386 395.21 1.195 874.647 364.772.371 59.725 594.706.19 39.776 715.216 984.208 8.930.98 3 5 2 4 1 7 6 10 9 8 11 12 2.008 3.831 170.440 564.302 390.808 140.84 6.038.175 96.359 9.01 8.465.522 9.761.412.15 0.52 2.256.5 22 4.258.39 14 4.00 0.704 227.89 3.846.134 1.82 0.550.61 1.592 5.82 59.966.832 314.40 13.672.699 831.495.988.205 2.690.651 1.86 41.5 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1.51 0.121.036 1.238.185.863 10.581 22.990 307.798 1.326 2.468 2.417 4.177 11.101 704.016 104.02 0.930 313.36 3.039 2.097 204.740.307.079 2 1 4 3 5 6 1.086 2.637.232 11.702 99.Borrowing Deposit % Ranks Total Assets Rs Lakh Ranks Networth Rs Lakhs Ranks Name Ranks 2009 2.552 1.449 66.025.55 25.646 238.589 17.204.094.259 4.136.794.

55 33.00 18.31 24.64) 4.53) 1 2 5 3 4 6 7 10 9 11 8 12 13 Best Foreign Banks 1 2 3 4 5 6 7 8 9 10 11 12 Barclays Bank DBS Bank Standard Chartered Bank BNP Paribas Citi HSBC JP Morgan Chase Bank Bank of Nova Scotia Deutsche Bank Caylon Bank Bank of America ABN Amro Bank 60.07 18.90 18.19 25.13 18.99 13.09 23.19 18.65 14.26 17.5 19 20 21 22 23 24.10 24.85 (27.35 21.51) 1 2 5 3 4 6 9 7 11 8 10 12 13 52.25 (20.81) (2.10 11.80 24.67 30.10 21.55 26.09 9.30 33.61 34.54 28.91 33.92 27.28 32.05 19.70 31.76) 0.81 34.63 21.5 26 27 State Bank of India Bank of Baroda Union Bank of India Bank of India Punjab National Bank IDBI Bank Punjab & Sind Bank Oriental Bank of Commerce Canara Bank Corporation Bank UCO Bank Dena Bank Indian Bank State Bank of Hyderabad Syndicate Bank State Bank of Patiala Andhra Bank State Bank of Travancore Bank of Maharashtra Indian Overseas Bank State Bank of Mysore United Bank of India State Bank of Bikaner & Jaipur Allahabad Bank State Bank of Indore Central Bank of India Vijaya Bank 33.34 13.46 26.20 12.66 (1.25 27.63 30.98 25.58 17.5 17.86 16.08 26.49 19.73 3 7 4 8 10 1 2 9 16 5 11 6 21 13 15 14 17 20 12 22 18 24 25 23 26 19 27 30.54 25.82 27.73 12.26) 1 2 3 6 4 10 12 5 7 8 9 11 44 THE FINANCIAL EXPRESS MARCH 2010 .72 33.62 29.70 31.17 12.00 (21.90 (3.45 24.33 15.93 11.90 24.02 (7.80) (18.62) 1 2 6 3 5 4 7 10 11 8 9 12 13 37.03 1 6 5 7 12 3 2 11 15 4 10 8 18 9 16 21 17 25 13 20 14 23 26 22 24 19 27 38.73 19.92 3 1 4 11 5 12 2 13 8 17 15 14 6 18 9 20 7 26 25 16 19 10 21 23 22 24 27 Best New Private Sector Banks 1 2 3 4 5 6 HDFC Bank Axis Bank YES Bank Indusind Bank Kotak Mahindra Bank ICICI Bank 37.42 26.94 29.74) (10.23 12.07 31.14 (4.98 21.29 19.35 25.25 8.43 14.83 26.65 24.92 16.89) (0.12 11.03 38.99 12.49 10.41 (5.84 27.5 24.54 20.11 15.27 14.89 23.55 19.25 6.46 25.68) 0.98 45.68 22.81 34.01 24.71 1.26 18.71 18.91 25.37 20.18 21.13) 1 3 2 4 5 6 41.84 8.43 29.59 18.67 26.87 28.66 (23.14 18.12 21.54 24.24) 1 2 3 4 5 6 Best Old Private Sector Banks 1 2 3 4 5 6 7 8 9 10 11 12 13 Dhanalakshmi Bank Lakshmi Vilas Bank Federal Bank City Union Bank Tamilnad Mercantile Bank ING Vysya Bank South Indian Bank Karur Vysya Bank Jammu & Kashmir Bank Karnataka Bank Catholic Syrian Bank Bank of Rajasthan Development Credit Bank 39.01 53.45 24.98 39.85 18.99 15.51 21.97 3.74 29.98 19.59 17.17 4.41 19.75) 2.12 9.00 (0.77 23.38 10.43 23.52 23.82 16.95 21.05 35.67 19.89 22.87) (33.94 18.49 24.67 17.67 (19.96 20.83 18.67) 1 2 3 4 5 6 55.23 (12.94 29.88 23.57) (15.18 15.27 16.73) (2.17 34.49 25.73 24.92 25.43 19.62 12.52 25.04 18.49 (1.73 19.90 36.38) 1 3 4 6 7 8 5 11 10 2 9 12 80.64 26.CATEGORY GROWTH Rank 2009 Total Assets Growth % Deposit Growth % Advances Growth % Name Ranks Ranks Ranks Best Nationalised Banks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17.04 17.72 21.61) 1 2 4 7 5 3 6 11 8 12 9 10 38.

71 15.554 233.848 6.08 (21.327 63.88 14.754 170.67 (42.08) 28.56 7.225 3.45 33.161 139.59 1 5 11 3 9 8 10 2 4 7 6 12 388.97 33.45 10.16 (329.35 17.698 1.34 39.01 298.204 18.55 23.13 9.530 31.905 190.20 50.18 69.723 14.05 80.30 78.78 10.287 46.090 24.265 290.59 29.820 46.303 16.50 18 7 4 8 13 1 10 20 5 22 25 17 14 6 16 15 19 3 24 23 26 11 21 9 12 27 2 35.01 20.77 19.55 55.67 (6.285 216.418 71.99 20.20 3.558 44.47 35.42 (93.44 8.54 26.770 53.35) 6 3 11 5 4 15 17 1 8 13 7 16 12 20 22 9 19 2 18 21 23 27 10 25 14 24 26 891.60 23.64 52.07 99.64 30.32 29.680 25.89) 1 2 3 6 7 5 4 9 8 10 12 11 13 25.75 30.48 23.34 156.406 13.15) 19.017 34.315 10.42 21.781) 3 12 1 10 8 5 7 6 2 4 11 9 13 Dhanalakshmi Bank Lakshmi Vilas Bank Federal Bank City Union Bank Tamilnad Mercantile Bank ING Vysya Bank South Indian Bank Karur Vysya Bank Jammu & Kashmir Bank Karnataka Bank Catholic Syrian Bank Bank of Rajasthan Development Credit Bank 1 2 3 4 5 6 7 8 9 10 11 12 13 252.017 9.528 60.69 14.81 2.31 28.66 50.04 96.NII Growth % Ranks Net Profit Growth % Ranks Increase in Networth Rs Lakhs Ranks Name Ranks 2009 22.63 30.42 3.83 10.50 42.23 1.07 18.34 23.25 10.649 33.64 28.83 (27.10) 1 2 8 5 7 11 3 4 9 6 10 12 13.76 14.31 5.41 7 5 1 9 4 3 2 10 6 12 13 8 11 102.281 1 3 6 4 5 2 HDFC Bank Axis Bank YES Bank Indusind Bank Kotak Mahindra Bank ICICI Bank 1 2 3 4 5 6 22.799 103.459 144.95 42.48 49.179 73.31 17.55 21.70 51.659 275.91 97.27 5.702 162.48 33.08 28.98 77.10 20.61) 4 2 3 1 5 6 315.38 22.505 179.49 51.45 13.42 14.189 4.78 23.984 197.06) (9.412 30.98 11.5 17.323 41.80 25.00 28.5 24.06 20.22 13.542 51.52 35.182 306.930 69.18 30.63 21.42 27.727 66.81 6.32 1.568 228.072 36.93 11.025 1 6 9 2 3 17 27 8 7 15 10 24 5 19 13 21 23 18 12 4 11 22 25 16 26 20 14 State Bank of India Bank of Baroda Union Bank of India Bank of India Punjab National Bank IDBI Bank Punjab & Sind Bank Oriental Bank of Commerce Canara Bank Corporation Bank UCO Bank Dena Bank Indian Bank State Bank of Hyderabad Syndicate Bank State Bank of Patiala Andhra Bank State Bank of Travancore Bank of Maharashtra Indian Overseas Bank State Bank of Mysore United Bank of India State Bank of Bikaner & Jaipur Allahabad Bank State Bank of Indore Central Bank of India Vijaya Bank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17.48 13.37 11.604 40.58 54.356 16.696 (3.96 28.45 57.28 30.00 31.53 20.468 31.16 10.33 32.33 17.054 33.5 19 20 21 22 23 24.857 42.86 17.507 39.02 27.15 24.491 89.05 35.938 10 8 3 6 2 1 5 9 4 11 7 12 Barclays Bank DBS Bank Standard Chartered Bank BNP Paribas Citi HSBC JP Morgan Chase Bank Bank of Nova Scotia Deutsche Bank Caylon Bank Bank of America ABN Amro Bank 1 2 3 4 5 6 7 8 9 10 11 12 THE FINANCIAL EXPRESS MARCH 2010 45 .742 8.95 27.48 29.385 15.72 13.40 17.86 23.677 44.55 3 5 4 6 2 1 41.5 26 27 41.01 22.

45 0.76 6.26 6.5 20 24.41 9.30 1.57 14.47 12 4 7 9 6 8 10 2 3 11 1 5 3.25 3.84 7.34 6.40 12.42 5.25 1.13 10.84 10.02 1.36 12.72 7.47 11.00 10.28 10.49 1.53 6.97 9 23.5 27 24.28 10.91 0.14 9 2 7 8 14 12 15 1 3.95 6.25) 0.39 13.09 1.34 6.21 2.5 18.88 0.5 17.24 6.87 2.94 4.76 10.95 5.5 21.76 11.5 23 6 19.29 12.03 5.87 12.71 2 1 3 7.56 5 2 3 6 1 4 6.5 17 10 11 21.91 2.81 0.5 4 15 14 19.58 2 3 1 5 4 6 10.12 3.13 11.56 6.5 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Punjab National Bank Bank of India Indian Bank Union Bank of India State Bank of Travancore Corporation Bank Indian Overseas Bank Bank of Baroda Dena Bank Andhra Bank State Bank of Bikaner & Jaipur Punjab & Sind Bank State Bank of India Canara Bank State Bank of Hyderabad State Bank of Indore Allahabad Bank Syndicate Bank State Bank of Mysore Bank of Maharashtra Oriental Bank of Commerce State Bank of Patiala Vijaya Bank United Bank of India UCO Bank Central Bank of India IDBI Bank 1.98 1.70 0.96 13.5 7 27 22 8 5 1 25 13 11.67 6.89 10.43 10.13 10.5 9 6 13 12 11 10 12.28 11.44 1.57 9.92 1.17 1.62 1.5 11.84 6.44 10.39 1.5 6 7 8 9 10 11 12 13 City Union Bank Tamilnad Mercantile Bank Karur Vysya Bank Jammu & Kashmir Bank Federal Bank Karnataka Bank South Indian Bank Bank of Rajasthan Dhanalakshmi Bank Development Credit Bank Catholic Syrian Bank ING Vysya Bank Lakshmi Vilas Bank 1.90 0.63 10.59 0.42 12.06 1 7 3 2 4 6 5 10 9 8 11 12 8.86 6.5 22 18.50 10.82 6.06 15.72 6.93 9.50 9.03 13.18 7.5 14 6 12 11 15.25 11.60 7.03 4.5 13 9.04 0.59 0.15 5.62 3 2 1 5 4 7 8 9.72 2.41 10.5 6 16 10 3 2 26 19.57 10.66 1 2 6 3 4 5 Best Old Private Sector Banks 1 2 3 4.78 11.41 7.52 17.5 13 19.93 6.41 6.5 17.51 1.24 4.89 11.31 8.45 3.06 6.16 0.50 12.45 6.42 4.78 8.06 11.22 6.74 1.60 0.72 0.40 7.68 10.26 1.10 2.46 5.28 1.57 0.88 0.92 7.49 1.13 2.04 1.09 0.5 17 21 15.10 4.08 6.5 4.5 6.63 13.86 6.24 1.68 9.53 12.58 8.27 1.5 26 23 10.03 0.94 1.47 11.42 4 11 10 6 7 13 9 1 8 3 2 5 12 Best Foreign Banks 1 2 3 4 5 6 7 8 9 10 11 12 JP Morgan Chase Bank Citi Bank of America Caylon Bank Standard Chartered Bank BNP Paribas DBS Bank HSBC Deutsche Bank Bank of Nova Scotia Barclays Bank ABN Amro Bank 4.09 6.48 1.45 7.21 (1.5 21 6.52 7.78 9.98 3.66 7.91 0.72 1.54 6.11 9.09 1.51 1.50 1.50 11.33 5.61 11.CATEGORY PROFITABILITY Rank 2009 Return On Assets % Yield On Advances % Cost Of Deposits % Name Ranks Ranks Ranks Best Nationalised Banks 1 2 3 4 5 6.09 0.83 0.38 2 3 9 8 4 5 10 6 13 1 7 12 11 7.59 4 5 2 3 10 6 7 9 1 11 12 8 46 THE FINANCIAL EXPRESS MARCH 2010 .60 11.10 12.00 9.55 7.5 18 16 24 Best New Private Sector Banks 1 2 3 4 5 6 Axis Bank HDFC Bank YES Bank ICICI Bank Kotak Mahindra Bank Indusind Bank 1.5 23.5 5 25 27 26 3.49 6.58 6.06 0.34 0.14 10.95 7.30 10.5 4 5 7.31 6.57 10.

02 6.37 6.60 7.91 2 3 1 5 6 4 72.58 79.47 15.14 6.71 6.13 32.10 5.18 71.74 7.26 18.07 8.76 85.88 5.76 0.32 18.96 8.98 90.69 7.88 73.37 5.87 7.19 17.98 7.15 17.57 6.84 14.90 6.5 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 17.09 8.22 14.54 8.99 7.27 79.72) 9.60 79.32 6.11 7.68 1 2 4 3 5 6 7.61 78.42 3 2 1 7 8 4 9 5 17 11 14 16 6 12 15 13 10 20 18 21 19 23 22 24 25 26 27 7.09 76.26 13.26 17.35 19.96 77.43 15.27 82.91 7.70 45.83 6.94 8.12 8 6 11 12 2 4 9 1 7 5 3 10 JP Morgan Chase Bank Citi Bank of America Caylon Bank Standard Chartered Bank BNP Paribas DBS Bank HSBC Deutsche Bank Bank of Nova Scotia Barclays Bank ABN Amro Bank 1 2 3 4 5 6 7 8 9 10 11 12 THE FINANCIAL EXPRESS MARCH 2010 47 .23 18.45 19.97 7.5 6.5 6 7 8 9 10 11 12 13 17.17 7.49 11.02 79.88 81.63 7.29 6.57 76.55 6.90 12.36 76.67 18.55 10.02 18.47 17.10 18.54 75.98 19.43 57.79 60.72 6.77 8.53 7.13 7.12 6.09 11.23 6.5 26 1 6 2 17 24 21 27 Punjab National Bank Bank of India Indian Bank Union Bank of India State Bank of Travancore Corporation Bank Indian Overseas Bank Bank of Baroda Dena Bank Andhra Bank State Bank of Bikaner & Jaipur Punjab & Sind Bank State Bank of India Canara Bank State Bank of Hyderabad State Bank of Indore Allahabad Bank Syndicate Bank State Bank of Mysore Bank of Maharashtra Oriental Bank of Commerce State Bank of Patiala Vijaya Bank United Bank of India UCO Bank Central Bank of India IDBI Bank 1 2 3 4 5 6.65 80.66 76.74 6.94 80.63 7.5 75.86 85.48 5.30 53.95 77.63 11.78 6.28 17.47 83.85 80.60 0.5 4 1 6 7 11 8 13 12 9 10 6.04 52.81 5 1 7 6 2 9 3 8 10 4 12 11 29.03 5 13 4 8 18 14.51 74.23 16.63 77.98 6.57 76.15 81.54 1 4 2 3 7 5 8 6 10 9 12 11 6.90 86.03 85.5 11 22 10 20 9 25 23 3 7 12 19 16 14.5 4 11 6 5 9 12 7.41 8.71 7.05 67.5 10 13 2 City Union Bank Tamilnad Mercantile Bank Karur Vysya Bank Jammu & Kashmir Bank Federal Bank Karnataka Bank South Indian Bank Bank of Rajasthan Dhanalakshmi Bank Development Credit Bank Catholic Syrian Bank ING Vysya Bank Lakshmi Vilas Bank 1 2 3 4.57 2 3 1 4 6 5 Axis Bank HDFC Bank YES Bank ICICI Bank Kotak Mahindra Bank Indusind Bank 1 2 3 4 5 6 18.94 11.28 6.09 1 5 2 4 8 3 6 9 7 13 12 10.71 6.18 6.54 (14.52 6.33 6.08 59.76 2.91 19.51 7.18 6.00 14.15 87.65 83.86 87.62 87.44 83.74 16.95 71.5 4.57 17.02 14.71 20.54 17.17 6.77 15.45 7.53 89.13 6.09 3 1 7.16 75.87 12.46 8.99 84.5 10.79 6.83 13.13 86.51 9.84 8.92 59.25 67.75 27.11 3 2 14 5 1 10 9 15 7 12 6 4 18 16 8 13 22 11 20 19 23 17 26 27 21 25 24 74.48 15.91 9.62 7.00 84.5 5 2.13 18.14 7.92 7.87 71.89 79.09 22.43 7.Return On Networth % Ranks Cost / Income % Ranks Return On Investments % Ranks Name Ranks 2009 21.12 78.87 48.55 7.03 17.58 11.

28 585.39 602.07 1 5 3.90 3 10 9 5 2 12 7 11 1 6 8 4 48 THE FINANCIAL EXPRESS MARCH 2010 .5 7 8 9 10 13 12 11 3.76 1.75 4.03 2.00 836.CATEGORY EFFICIENCY Rank 2009 Business Per Employee Rs Lakhs Profit Per Employee Rs Lakhs Spread / Total Assets % Name Ranks Ranks Ranks Best Nationalised Banks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Bank of India Corporation Bank Bank of Baroda Union Bank of India IDBI Bank Indian Bank State Bank of Travancore Indian Overseas Bank Punjab National Bank Oriental Bank of Commerce Canara Bank State Bank of Hyderabad Punjab & Sind Bank State Bank of India Andhra Bank State Bank of Patiala State Bank of Indore Allahabad Bank Dena Bank Syndicate Bank State Bank of Bikaner & Jaipur State Bank of Mysore Vijaya Bank UCO Bank Bank of Maharashtra Central Bank of India United Bank of India 833.88 606.00 914.00 3.09 4.15 1.00 5 18 10 6 27 1 4 8 2 22 14 20 3 11 7 24 15 13 12 19 10 17 23 26 16 25 21 Best New Private Sector Banks 1 2 3 4 5 6 YES Bank ICICI Bank Axis Bank HDFC Bank Kotak Mahindra Bank Indusind Bank 988.25 649.96 2.00 635.55 3.87 4.96 16.84 2.75 2.41 2 6 3 5 8 1 4 7 9 12 11 10 110.18 638.40 2.38 11.00 510.00 750.74 4.71 1.68 0.28 8.82 655.79 2.16 1.52 2.90 5.24 701.825.00 1.434.62 3 1 2 7 8 4 6 5 11 10 9 12 5.105.18 4.060.98 6.035.890.00 1.44 3.72 2.00 728.00 2.48 2.13 961.33 2.00 1.93 379.05 6.029.89 (4.97 2.30 3.33 617.69 2.00 657.21 2.5 6 3 2 4.48 2.69 5.70 4.23 5.00 45.049.80 4 5 3 2 1 6 Best Old Private Sector Banks 1 2 3 4 5 6 7 8 9 10 11 12 13 Federal Bank Jammu & Kashmir Bank City Union Bank Karur Vysya Bank Tamilnad Mercantile Bank Karnataka Bank South Indian Bank Dhanalakshmi Bank ING Vysya Bank Bank of Rajasthan Development Credit Bank Catholic Syrian Bank Lakshmi Vilas Bank 750.97 4.75 689.39 532.39 2.63 2.02 4.00) 1.154.59 3.37 2.10 3.00 645.28 3.98 5.42 6.26 2.07 1 4.43 5.91 6.80 2.64 3.64 6.49 1 2 3 4 6 5 2.53 706.12 26.17 839.03 4.15 2.00 374.51 2.35 2.5 8 13 Best Foreign Banks 1 2 3 4 5 6 7 8 9 10 11 12 Bank of America JP Morgan Chase Bank Caylon Bank Citi Deutsche Bank Bank of Nova Scotia BNP Paribas DBS Bank Barclays Bank HSBC Standard Chartered Bank ABN Amro Bank 2.90 78.00 714.29 4.92 2.48 4.00 4.68 4.10 1.030.00 4.87 3.81 971.07 3.00 1.77 1.430.57 1.44 2.75 2.00 732.61 560.37 2.87 5.18 2.24 2.82 0.63 130.55 2.32 1.20 5.52 2.12 2.142.00 500.33 1.85 253.14 585.00 679.28 1.29 910.34 2.39 2.58 4.56 2.36 2.39 49.34 1.67 5.36 5.64 6.19 2.00 347.00 565.20 2.22 3 2 7 4 1 5 9 10 8 6 12 13 11 14 16 15 17 19 18 20 21 22 25 24 23 26 27 2.50 654.00 7 3 4 16 1 22 18 17 20 2 8 6 19 26 12 5 15 14 13 10 27 23 9 11 21 25 24 7.00 3 1 2 5 6 4 11.57 3.00 446.00 10.65 555.28 2.06 3.92 2.90 1.43 780.64 2.60 1.00 4 2 3 8 10 6 7 1 9 5 12 13 11 6.880.00 72.49 7.06 23.662.00 756.18 3.110.5 7 2 12 6 9 11 10 3.10 3.36 1.92 1.58 556.31 4.00 694.

5 18 14 17 15 1.51 1.5 19 2 11 13 17 8 26.40 1.07 2.15 1.51 2.57 9 3 15.35 125.51 2 1 4 3 5 6 1.79 2.17 5.74 23.387.64 1.78 2 3 7 11 1 6 4 10 9 12 8 14 16 5 19 13 15 22 21 20 18 17 25 23 24 26 27 1.47 34.70 1.61 1.91 83.5 5 12 4 24 20.93 0.56 3.86 1.61 64.47 58.39 1.38 67.27 68.21 168.5 9 5 6 10 11 8 13 12 7 Federal Bank Jammu & Kashmir Bank City Union Bank Karur Vysya Bank Tamilnad Mercantile Bank Karnataka Bank South Indian Bank Dhanalakshmi Bank ING Vysya Bank Bank of Rajasthan Development Credit Bank Catholic Syrian Bank Lakshmi Vilas Bank 1 2 3 4 5 6 7 8 9 10 11 12 13 4.48 1.95 79.50 81.98 1.51 3.5 23 14 7 22 6 15.5 Bank of India Corporation Bank Bank of Baroda Union Bank of India IDBI Bank Indian Bank State Bank of Travancore Indian Overseas Bank Punjab National Bank Oriental Bank of Commerce Canara Bank State Bank of Hyderabad Punjab & Sind Bank State Bank of India Andhra Bank State Bank of Patiala State Bank of Indore Allahabad Bank Dena Bank Syndicate Bank State Bank of Bikaner & Jaipur State Bank of Mysore Vijaya Bank UCO Bank Bank of Maharashtra Central Bank of India United Bank of India 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2.32 1.04 0.91 230.10 26.37 1.95 2.740.62 1.43 2.79 3.70 (108.12 1.26 1.057.68 59.26 1.72 1.34 77.33 20.5 18 26.97 1.05 1.68 1.51 1.308.25 50.17 3.590.52 1.73) 10.83 62.08 1.31 4.92 1.23 1.67 1.50 86.11 2.20 12.84 1.08 3.68 45.45 0.67 38.36 2 1 6 3 4 5 8 9 7 10 13 12 11 1.5 3.57 2 1 7 3 4 5 10 8 11 6 9 12 1.79 4.44 2.62 1.31 2.38 0.17 1.08 50.67 75.70 1.75 1.75 42.67 40.30 83.34 1.68 1.5 13 20 23 26 25 102.98 1 2 3 5 6 4 YES Bank ICICI Bank Axis Bank HDFC Bank Kotak Mahindra Bank Indusind Bank 1 2 3 4 5 6 1.31 1.78 1.52 25.44 79.56 4.63 0.59 1.43 1.20 59.89 2.01 0.51 1.70 1.31 1.79 0.85 76.592.44 1.50 63.26 0.84 1.44 8 13 7 3 10 4 11 5 1 12 2 6 9 81.32 2.96 160.49 1.87 1.00 37.60 1.22 0.93 3.64 60.53 1.62 3.5 3 5 19 24 6 11 4 8.38 7.43 1.83 4.51 1.78 1.36 1.23 1.64 47.31 1.91 0.67 5 2 4 8 11 1 6 3 10 7 9 12 Bank of America JP Morgan Chase Bank Caylon Bank Citi Deutsche Bank Bank of Nova Scotia BNP Paribas DBS Bank Barclays Bank HSBC Standard Chartered Bank ABN Amro Bank 1 2 3 4 5 6 7 8 9 10 11 12 THE FINANCIAL EXPRESS MARCH 2010 49 .88 1.747.61 2.32 1.57 3 1 2 5 4 12 11 11 8 9 6 7 6.118.00 2.13 1.11 1.20 602.80 71.300.78 1.20 2.888.83 1.00 44.64 1.84 27.5 10 1 25 20.31 1.02 4.16 1.53 31.18 1.Non-Interest Income / Total Assets % Ranks Profit Per Branch Rs Lakhs Ranks Operating Expenses/Total Assets % Ranks Name Ranks 2009 1.37 1.17 3.00 2.25 1.46 4.71 4.65 1.5 12 22 16 10 21 27 7 8.25 2.22 1.79 2 4 1 3 6 5 257.67 0.18 1.51 266.57 1.66 16.42 1.99 0.14 1.82 2 1 3.68 70.63 1.47 1.20 1.

198) (55.02 84.91 6.97 5.00 16.41 3.04 48.5 5 2.5 1.31 2.125 127.482.00 30.214 3.774 5.00 101.58 5.169 180.93 9.17 4.716.07 5.568 262.73 9.296 3.400) 861 5.996 4.421.80 12.091.98 1.00 31.00 60.769) (2.246 43.415 110.977 1 2 4 5 3 6 4.091.732 89.69 1.479.65 21.411) (3.13 6 1 2 3 5 4 Best Old Private Sector Banks 1 2 3 4 5 6 7 8 9 10 11 12 13 Tamilnad Mercantile Bank Karur Vysya Bank Dhanalakshmi Bank Lakshmi Vilas Bank City Union Bank Federal Bank ING Vysya Bank Karnataka Bank Jammu & Kashmir Bank Bank of Rajasthan South Indian Bank Catholic Syrian Bank Development Credit Bank (178) 1.729) 7.21 12.65 14.44 3.48 13.551 (429) (17.207 53.5 6 2.222.410 53.00 43.183) (2.49 2 4 2 2 5 9 11 7 10 12 6 8 50 THE FINANCIAL EXPRESS MARCH 2010 .97 11 2 13 5 1 4 27 6 3 21 25 10 16 14 17 18 12 20 9 8 23 7 15 19 26 24 22 Best New Private Sector Banks 1 2 3 4 5 6 Indusind Bank YES Bank Axis Bank HDFC Bank Kotak Mahindra Bank ICICI Bank (13.095 9.61 16.00 24.473 7.126 92.22 52.12 15.31) (5.289 159.250.030.76 2.5 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Oriental Bank of Commerce Punjab National Bank State Bank of Travancore Bank of Baroda Indian Bank Corporation Bank UCO Bank Punjab & Sind Bank Andhra Bank Syndicate Bank Central Bank of India State Bank of Mysore IDBI Bank State Bank of Patiala Bank of Maharashtra State Bank of Indore Allahabad Bank State Bank of Bikaner & Jaipur State Bank of Hyderabad Bank of India Dena Bank Union Bank of India Vijaya Bank Canara Bank United Bank of India State Bank of India Indian Overseas Bank (22.535 25.42 12.643) (13.915 12.675 18.53 3.57 12.649 1.00 2 1 5 4 3 6 10.796 295.22 99.00 33.29 9.00 111.211.10 4.213.00 19.244) 2.951.437.208 4.316 108.404 3.CATEGORY CREDIT QUALITY Rank 2009 Increase In GNPA Rs Lakhs Restructured Loans Rs Lakhs NNPA / Networth % Name Ranks Ranks Ranks Best Nationalised Banks 1.479.282.110 27.491.049 18 24 3 20 19 7 16 2 11 23 13 5 17 15 8 1 22 4 10 26 9 21 6 14 12 27 25 5.343 530.00 12.039 24.41 10.28 10.36 1.54 3.526 506.433 206.36 1.290.771.23 1.410.62 3.317 338.16 9.646 2 1 8 4 7 9 5 12 10 3 6 11 18 16 13 14 19 17 20 24 15 23 21 25 22 27 26 262.82 20.346 245.28 12.5 11 9 2.06 16.41 10.00 99.137.25 1.468 57.66 14.121 104.23 3 2 5 11 7 1 10 6 9 4 8 13 12 Best Foreign Banks 1 2 3 4 5 6 7 8 9 10 11 12 Bank of Nova Scotia JP Morgan Chase Bank Caylon Bank Bank of America DBS Bank Standard Chartered Bank Barclays Bank BNP Paribas Citi ABN Amro Bank Deutsche Bank HSBC (0.301.160 122 607 1.07 8.00 54.00 63.00 29.00 8.817 26.133.87 2.846) (2.436 40.092.20 4.00 17.331.999.315 6.45 10.32 7.51 1.897.232 280.11 30.17 12.302 17.00) (0.098.617.922.520) (11.68 10.80 8.500.65 2.589 6.37 3.934 97.598 173.213 1 4 2 3 5 12 11 8 10 6 9 7 13 11.00 18.22) 2.73 13.468.900 275.303.326.00 3.337 147.00 41.00 11 6 13 8 4 1 9 3 2 5 7 10 12 2.228 322.291.041.763 206.35 17.363 7.284 96.877 407.30 22.908 5.49 3 1 2 4 5 8 11 7 12 9 6 10 3.5 12 8 10 7 0.974 66.00 7.339.09 7.00 9.570.00 3.82) (132.156 263.36 5.667 212.

36 2 11 3 1 4 7 12 5 9 8 6 10 (0.06 0.65 0.16 0.57 1.68 1.12 1.75 0.51 (5.35) (552.89 1.71 1.89 0.42 2.98 4.91 1.5 1.96 1.93 2.04 8.86 (0.19 0.72 27.71 2.5 4 13 10 3 7.57) (0.12 7.81 2.00) (9.58) (0.56 2.16 6.29 0.77 2.56) 1 4 2 3 5 6 Indusind Bank YES Bank Axis Bank HDFC Bank Kotak Mahindra Bank ICICI Bank 1 2 3 4 5 6 1.18 9.59) 1 4 5 2 7 3 9 6 8 11 10 12 13 Tamilnad Mercantile Bank Karur Vysya Bank Dhanalakshmi Bank Lakshmi Vilas Bank City Union Bank Federal Bank ING Vysya Bank Karnataka Bank Jammu & Kashmir Bank Bank of Rajasthan South Indian Bank Catholic Syrian Bank Development Credit Bank 1 2 3 4 5 6 7 8 9 10 11 12 13 0.19 4.60 9.78 3 4 5 10 2 8 1 11 9 6 7 12 13 (0.81 7.14 0.36 1.5 1 12 14 9 8 17 5 16 15 23 13 19 20 10.11 2.18 4.57 (33.5 21 18 26 24 25 22 27 Oriental Bank of Commerce Punjab National Bank State Bank of Travancore Bank of Baroda Indian Bank Corporation Bank UCO Bank Punjab & Sind Bank Andhra Bank Syndicate Bank Central Bank of India State Bank of Mysore IDBI Bank State Bank of Patiala Bank of Maharashtra State Bank of Indore Allahabad Bank State Bank of Bikaner & Jaipur State Bank of Hyderabad Bank of India Dena Bank Union Bank of India Vijaya Bank Canara Bank United Bank of India State Bank of India Indian Overseas Bank 1.86 0.93 2.98 2.92 1.86 4.99 4.GNPA/Gross Advances % Ranks Increase In GNPA / Increase In Gross Advances % Ranks Increase In NNPA / Increase In Net Advances % Ranks Name Ranks 2009 1.27 0.11) (0.67 0.31 4.93 11.17) (38.66 2.85 2.04 2.89 2.45 6.25 0.65) 2.37) (0.71 5.95 1.47 1.68) 49.17 1.11 0.68 (16.11 1.42 1.00 5.04) (1.23 3.08 1.01) 14.41 (0.04) 0.27 10.10 4.73) 37.53 7.39 1.37 (12.21 0.61 0.18) 2 1 7.81 1.29 1.62) (1.54 11 16 14 6 3 5 22 1 2 18 25 10 8 7 23 9 17 13 4 15 21 20 19 12 26 27 24 (1.27) (0.77 5.12 (2.71 4.74) 1 4 3 2 6 5 7 11 8 9 12 10 3.74 1.76) 1.64 0.80 0.73) (0.25 3.39 0.5 3 4 5 12 6 9 11 10 Bank of Nova Scotia JP Morgan Chase Bank Caylon Bank Bank of America DBS Bank Standard Chartered Bank Barclays Bank BNP Paribas Citi ABN Amro Bank a Deutsche BankG HSBC 1 2 3 4 5 6 7 8 9 10 11 12 THE FINANCIAL EXPRESS MARCH 2010 51 .25 (14.53 1.73 0.96 2.72 (38.83 1.17 0.01) 1 3 2 4 5 6 (3.93 1.50 0.78 3.36 (79.27) 0.13 1.02 1.72 3.67 1.14 2.93 2.36 0.67 1.44 1.32 3 1 2 4 5 6 (4.58 0.03) 0.99 2.63) 0.14) 1.38 4.77 1.81 1.64 2.5 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1.39) (1.00 7.26 2.74) 1 5 3 4 6 7 2 10 8 11 9 12 13 0.86 2.02) (48.51 (51.88 0.38 1.01) (0.80) 0.05 0.95 1.5 11 12 15 14 18 16 19 23 21 17 20 26 24 25 22 27 (0.10 0.39 4 3 2 6 7 10.02 0.05 15.99 22.69) (1.63 1.18 0.05 0.83 1.38 1.56 8.78 10.24) (0.85 3.5 7.31 2.80 2.26 0.28 1 2 5 6 9 7.64 1.69 4.

051 1.702.493.098.798 66.997.414.732.021.302 942.368 90.755 3.880.970.216 272.808 1.179 5.539.453.185 395.856.834.386 9.367.211.552 74.002 99.027.935 239.051 370.831 641.633 669.595.776 314.026 2.407 3.976.196 271.225.207.497.783 11.548.363.897 5.304 590.681 204.938.000.586 1.320 2.262.655 397 2.719 2.183 10.771 156.545 236.092 489.619 4.460 128 233.723 320.077 480.299 1.609 948.094 563.188 9.514 956.035 367.555.448 227.891 74.845 6.796 1.345 214.011.988 176.939.061 1.915 788.099.836.140 1.053.738.171 3.033.244.338.248.662.312 356.300.544 808.049.746 820.220.134 165.411 358.146.588 5.451.280.283 13.242 99.974 5.943 Borrowings 944.305.811 1.819 14.465.040.167.453.554 1.341 1.651 140.156 13.906 Investments 1.402 319.574 1.091 9.630 15 207.161.397 4.291.203 3.423 3.386 713.094 104.149 471.260.204.101 7.478 4.704 53.870.370 224.689.527 1.604 10.384 8.831.016 390.590 14.554 1.691.583 6.596.605 4.111 4.552 335.917 54.158 4.646 215.085 10.323.284 5.584 826.396 805.926 8.362 130.369 4.776 219.988 1.003 11.663 344.299.792.057 3.737 464.590 5.025 8.821.552 45.105 1.564.192 11.492 297.488.577 6.137.447 5.832 5.308 870.698 19.176 4.018 186.886 3.520 1.546.441.004 1.589 2.408 428.041 70.888.848.777 38.COMPATABILITY MODE All figures pertain to March 31.213 360.736 1.534 524.250.093 34.422 52 THE FINANCIAL EXPRESS MARCH 2010 .525 4.425 1.185.701 662.206 1.239.258.490 45.242 388.260 72.211 2.535 15.653.022.287 251.078 654.097 166.696 1.690 218.548 216.737.195 364.743 6.391 602.342.518 607.695 18.675.164 156.401 1.252 633.488.594 14.355 3.349.760 2.770 711.055.714 1.075 1.037 2.234 4.436 25.371 740.894 268.155.211.175 403.930 162.064 1.646 90.880 3.413.879 2.702 135.069 2.794.661 13 80.486 162.838.083 5.677 61.994 564.895 1.288 262.677 335.887.833 18.320 3.493 736.848 5.285 2.115.439 170.166 27.592 715.809.977 1.247.173 156.689 496.470.127.751.169 6.240.072 2.239.922.699 1.181.240 249.850.048 3.156 1.588.305 2.093 8.036 307.309 Networth 238.988.073.676 19.053 217.993 3.123 1.281.306 2.665.786 705.081.777.763 327.196 93.493 251.398.718 1.577.271.093.606 2.602 2.180.411 416.467.255 1.151.305.121.834 5.442 6.312 2.880.833.398.314 81.704 131.062 1.286 4.071 4.083 284.030 5.566 20.965.924 218.412 3.449 432.290.746 2.382 10.777 781.227 657.719 86.940 368.869 21.616.421 1.214 172.542 1.198 3.660 2.921 1.481 274.153.050 476.707 5.240.148 437.176 3.440 896.028 21.579 585.851.465.796 879.828 185.937 3.432 4.181 1.528 778.028 59.299 13. 2009 Sector Foreign Nationalised Nationalised New Private Foreign Nationalised Nationalised Nationalised Foreign Old Private Foreign Foreign Foreign Nationalised Old Private Nationalised Foreign Old Private Nationalised 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 Name ABN Amro Bank Allahabad Bank Andhra Bank Axis Bank Bank 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 Catholic Syrian Bank Central Bank of India Citi City Union Bank Corporation Bank DBS Bank Dena Bank Deutsche Bank Development Credit Bank Dhanalakshmi Bank Federal Bank HDFC Bank HSBC ICICI Bank IDBI Bank Indian Bank Indian Overseas Bank Indusind Bank ING Vysya Bank Jammu & Kashmir Bank JP Morgan Chase Bank Karnataka Bank Karur Vysya Bank Kotak Mahindra Bank Lakshmi Vilas Bank Oriental Bank of Commerce Punjab & Sind Bank Punjab National Bank South Indian Bank Standard Chartered Bank State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Travancore Syndicate Bank Tamilnad Mercantile Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank YES Bank Deposits 1.702 Advances 1.371.034 1.518.991.283.633.881.647 320.510.758.328 1.001 304.833 42.615 680.378 80.004.429.066 1.831 5.306 276.528 7.121.259 78.244.704 874.985.093 2.208 90.186 5.219.990 501.558 500.268 206.598 911.306.018.662 7.561.461.104 313.

219 43.553 207.427 146.307 12.278 25.580 704.406 412.259 4.636 34.472 26.700 222.175 12.302 564.548 60.702 77.426 285.157 16.632 284.736 139.208.881 43.202 11.068.473 537.864 344.790 141.907 26.372 164.596 20.129 375.462 3.727 580.290.718 309.141 230.703 48.298 221.733 37.785 10.963 97.103 99.111 13.087.202 19.821 27.189 96.942 381.794 106.551 6.229 12.538 1.307 58.061 269.000 15.944 240.531 116.650 101.984 44.854 15.637.871.329 11.392 238.472 106.170 54.853 Net Profit 1.634.637 49.051 13.902 467.814 85.534 33.969 16.229 4.743 93.546 742.579 6.302 181.094.036 63.740.514 357.355 199.530 197.109.610 2.846.750 188.570 1.267 32.190 5.766 305.184 420.868 162.931 1.170 258.030 90.762 39.903.118 Other Income 122.035 411.383 103.183 437.661 132.821 35.205 984.211 7.139 24.245 19.937 76.288 315.443.652 25.564.271 4.812 51.794 44.723 300.592 836.535 22.315 26.595 28.059 697.946.123 2.289 471.581 1.483 76.023 80.487 594.769 3.885.617 168.107.417 16.690.343 647.769.582 315.922 32.189 996.284 69.208 81.952 100.494 129.720 57.361 58.041 48.672.803 26.493 231.004 66.863 982.659 1.522 10.272.717 12.691 1.086 69.187 831.932.679 2.582 45.100 2.989 298.762 885.795 28.002 17.247 47.409 25.692 53.735 80.824 6.048.282 219.936 51.998 223.772.238.083.857 31.543 159.356 116.185.633.812 62.039 37.579 955.960 45.625 54.620 45.641 15.846 249.204.469 381.342 549.526 18.765.509.257 169.749.514 65.332 275.851 286.673 22.950 6.378.845 97.080 35.215 89.022 55.896 9.086 18.651 17.260 2.769 291.202 17.098 31.136.208 3.620 32.772 714.155 60.411 97.286 11.520 35.605 374.510 114.529 132.294 16.515 15.508 79.770 172.605 309.466 704.764.303 149.240 3.364 83.440 2.229.291.699 107.943 760.440 606.610 306.214 NII 168.053.332 Interest Expence 143.240.519 684.070 6.801 6.905 55.959 306.008 14.780 16.825 112.641 42.585 27.782 892 11.232 8.162 131.371 138.340 2.967 736.504 37.256.385 13.404 248.086 52.166.264 43.967 12.182 677.308 324.096 17.807) 5.169 138.116 Name ABN Amro Bank Allahabad Bank Andhra Bank Axis Bank Bank 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 Catholic Syrian Bank Central Bank of India Citi City Union Bank Corporation Bank DBS Bank Dena Bank Deutsche Bank Development Credit Bank Dhanalakshmi Bank Federal Bank HDFC Bank HSBC ICICI Bank IDBI Bank Indian Bank Indian Overseas Bank Indusind Bank ING Vysya Bank Jammu & Kashmir Bank JP Morgan Chase Bank NA Karnataka Bank Karur Vysya Bank Kotak Mahindra Bank Lakshmi Vilas Bank Oriental Bank of Commerce Punjab & Sind Bank Punjab National Bank South Indian Bank Standard Chartered Bank State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Travancore Syndicate Bank Tamilnad Mercantile Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank YES Bank THE FINANCIAL EXPRESS MARCH 2010 53 .315 957.502 89.479 51.962 270.013 7.861 65.669 23.033 964.725 11.412.543 43.133 40.476 190.193 150.991 103.568 154.648 324.844 271.862 2.Figures in Rs Lakhs Total Assets 3.434 17.992 891.030.567 1.577 329.269.123 27.089 822.255 9.721 30.913 20.964.711.042 151.145 553.500 29.351 19.871 46.394 94.101 8.717 1.115 62.326 1.110 266.163.461 1.117 366.660 50.188.036 13.187 523.725 8.722.938 431.705 76.838 63.699 3.079 Interest Income 311.246 30.306 57.255 1.256 260.186 50.274 12.026 28.077 9.243 7.137 1.989 148.701 2.928 15.516 105.369 110.654 63.892 33.381 99.715 520.878 40.361 203.086 13.520 40.462.650 186.318 25.258.302 5.427 309.962 100.370 1.459 4.307.692 3.767 24.525 138.537 289.684 6.921 14.705 57.761.740 144.514 92.514 47.431 51.959 106.386 NNPA 36.485 44.853 124.930.078 144.025.152 112.816 1.997 358.314 1.672 242.841 331.507 24.028 570.027 198.774 128.020 7.124 217.227 632.216 4.845 303.938 171.495.379 24.387 26.050 224.443 129.074 2.088 19.177 5.582 39.786 23.947 223.281 15.397 96.240.357 41.493 31.035 699.759 119.668 807.526.884 56.514 194.781 1.830 1.164 57.821 115.846.012 101.835 18.589 4.084.655 18.914 17.594 1.706 424.011 17.145 64.162 683.966.594 52.203 33.609 5.921 24.392 79.155 54.821 17.691.193 76.422 38.802 36.550.038.468 3.556 21.590 260.285.252 215.322 146.300 105.592 191.662 1.675 40.181 185.005 (8.338 7.760 64.847 441.903 64.502 Operating Expense 149.346 61.852 27.781 34.282 3.140 12.044 159.359 925.945 110.799 661.980 110.544 4.784 91.782 200.579 14.572 422.715 812.530 1.352 9.255 49.158 1.097.725 12.314 73.187 703.679 199.103 455.509 133.506 71.125 39.580 912.045.121 9.071 6.177 2.584 101.502 512.471 41.051 2.722 13.363 18.407 685.692 564.327.573 222.706.735 429.713 45.902 42.747 50.973 78.687 39.689 368.343 9.890 125.310 86.

growth has picked up now. Will you allow sophisticated derivative products in the market? We should not be concerned about derivative products. I think that we should be more concerned about these issues. any financial system is robust. Still. There may be more regulations from RBI on the subject in the future. whenever any crisis or any accident takes place. financial inclusion. Fourth. What is RBI’s focus? Well. That is the tragedy . better risk management. If we have to take products and services to the poor. counter-cyclical measures should be taken. Rather. 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. the monetary policy must be concerned with asset bubbles. Can it lead to a situation over regulation impeding the freedom of the markets? Ideally it should not happen now. That is a common thing. The recently formed Financial Sector Stability & Development Council is also discussing the financial inclusion issue. I would say different players and regulators have managed it well. At RBI. Our current focus is confined to three areas. And hence we are working to ensure the penetration of banking facilities. But. How are you planning to do that? We will do it by way of promoting financial literacy Now. you should be concerned about the credit growth and the money supply growth. Rather. financial stability and above all. Even those who are very poor manage the difficult situation very well. we have made . ◆ At the Reserve Bank. RBI ‘Go for financial inclusion’ KC Chakrabarty speaks with the Financial Express on a host of issues. some progress on this topic. 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. 50% of the population is does not have access to any kind of banking products. Third. you need have the help of technology as a front-end device. Thus. What is the broad lesson for RBI from the global financial crisis? The broad lesson is to improve banking penetration. I think that financial literacy can't be done by the Reserve Bank alone. the country’s economy is growing by 7%. which include better protection to customers. we should be worried about providing basic banking products to everybody Let . You have to bring new things. we are committed to reforms. We are not into credit derivative products like CDS. whenever any particular sector shows the signs of more volatility and more risks. . We are one of the poorest countries in the world. You have to improve everywhere. then only will we introduce these products. we are very clear. better treatment to customers and finally. reforms should not slow down. whenever things are going good. I see the regulators will be cautious at the global level as well. Moreover. the market take care of other things.REGULATOR SPEAK K C CHAKRABARTY Deputy Governor. which means taking banking services to the doors of the masses. There should always be vigilance in the regulatory system. 54 THE FINANCIAL EXPRESS MARCH 2010 The problem is that we are not at all concerned of the 90% population of the country living without their access to credit. 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. When we think that the market is mature enough for these kinds of derivative products. if the availability of credit is ensured for a large segment of society . Still. But then. Secondly. Despite the severe drought. Because of that. You need to involve other regulators too. people obviously get cautious. financial sector reforms. they are unable to get credit from financial institutions at even a 15% rate of interest.

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ICICI Bank . With the economy expected to grow at sustained high rates over the next decade. the .GUEST COLUMN K V KAMATH Weathering the storm and emerging a global force NDIA has been among the first economies to recover from the impact of the global financial and economic crisis. the opportunities for the banking system will be significant. the regulatory response to these developments was to ensure stability of the overall system while dealing with the large and sudden shock from the global markets. It is important to have a perspective on the challenges that arose from the global financial crisis for our economy and financial sector. consumers. The fact that we successfully navigated these challenges is no small achievement. The development of the banking sector will mirror the country’s economic growth momentum. measures had a stabilising impact on the economy and the banking sector. supporting sectors facing difficulties as well as maintaining an overall demand impetus in the economy These . focus on enhancing financial deepening and increasing systemic efficiency would be the key to realising this potential. business confidence and increased risk perception adversely impacted banking system credit growth. 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 . These challenges and the rapidity of their emergence created a mood of shock and erosion of confidence among businesses. will create opportunities in corporate banking. particularly in the infrastructure sector. lenders and investors. conservative leverage. stable funding based largely on deposits and a healthy asset quality profile. the Reserve Bank of India significantly reduced interest rates in the economy and provided adequate liquidity support to all sectors. As part of its confidence building measures. while increased investments. to which it had to adjust quickly In this environment. Simultaneously. both in the retail and corporate segments. The basis of this achievement was the inherent 56 THE FINANCIAL EXPRESS MARCH 2010 I soundness of the Indian banking system. It is also important to remember that the global financial crisis did not have any adverse impact on our domestic fundamentals and its impact therefore was largely transitory . the government announced key fiscal measures aimed at both. The author is chairman. the domestic momentum itself has the potential to elevate the Indian banking system to global prominence. The impact was mainly through the trade and capital flow channels. Favourable demographics and increasing incomes will continue to drive growth in retail banking. Continued liberalisation. The corporate sector was faced with a new cost-price-demand equation. As such. As such. focus the resilience of our financial sector in the face of a crisis that had its genesis in the financial systems of the West. with a resultant impact on domestic liquidity and business confidence. 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. While this highlights the positive fundamentals driving long-term growth in the country it also brings into .