You are on page 1of 57

CONTENTS

18 22
‘We aspires to become ‘We are a delta on the
a global bank’ Indian economy’
K R KAMATH, ADITYA PURI,
MD&CEO, Punjab National Bank MD&CEO, HDFC Bank

BEST BANKS
INSIDE
Editorial
Indian banks need to scale top 4 26 32
Theme Story
Gamechangers in the Indian ‘Emerging as a lender ‘We will cater with
banking sector 6

Methodology Rationale
to the common man’ a suite of services’
Looking to strengthen and consolidate, M VENUGOPALAN, KALPANA MORPARIA,
maintain credit quality and profitability 10 Chairman, Federal Bank CEO, JP Morgan

Nationalised Bank
Rank 1: Punjab National Bank 18
Rank 2: Bank of Baroda 20

New Private Sector Bank


Rank 1: HDFC Bank 22
Rank 2: Axis Bank 24

Old Private Sector Bank


36 54
Rank 1: Federal Bank 26
Rank 2: Tamilnad Mercantile Bank 30 ‘Financial inclusion ‘Go for financial
Foreign Bank
Rank 1: JP Morgan Chase 32
plans are profitable’ inclusion’
Rank 2: Citi 34
V ROMESH SOBTI, K C Chakrabarthy,
MD&CEO, IndusInd Bank Deputy Governor, RBI
Credit Quality
Rank 1: IndusInd Bank 36

Tables
Detailed rankings with banks
categorised into public sector
banks (PSB), Old Private Sector
Banks (OPSB, New Private
Sector Banks (NPSB) and 56
Foreign Banks (FB) 38

Regulator Speak: K C Chakrabarty


“Go for financial inclusion” 54
Weathering the storm and
Guest Column: K V Kamath emerging a global force
Weathering the storm and K V KAMATH,Chairman, ICICI Bank
emerging a global force 56

2 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


EDITORIAL

Indian banks
need to scale up
T
HE global financial crisis and its aftermath forced banks to introspect about
FE-EY
BEST BANKS
the kind of financial sector architecture India should have in the years ahead.
Indian banks escaped the contagion because they were highly regulated at
SURVEY 2009-10 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
Chairman of the Board sector can avoid integrating with the global financial system. India cannot become a
Viveck Goenka
global player unless its banking system reinvents itself to deal with the thousands
Group Editor-in-Chief of businesses which are doubling in size every 4 to 5 years. The one key learning
Shekhar Gupta
after the financial crises was that Indian banks needed to have size. When
Managing Editor international credit delivery froze for several months after the Wall Street crises,
M K Venu
foreign lenders stopped lending and Indian banks were called upon to rescue
Project Co-ordinator companies. Unfortunately, Indian banks found they did not have big enough balance
Akash Joshi
sheets to meet the exigencies .This resulted in a healthy debate over how Indian
Editorial Co-ordinators banks can actually build scale to not only fuel the global ambitions of its domestic
Sitanshu Swain, Ayesha Dominica Singh,
Sushila Ravindranath 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
Editorial
Mahalakshmi Hariharan, Kumud Das, Asia is not a new one. But it has assumed fresh urgency in the context of the balance
Saikat Das, Sajan Kumar of economic power rapidly shifting towards Asia. God forbid, if there is another
Desk
financial meltdown and a double dip recession in the West, India will need banks of
Ayesha Dominica Singh the size and scale which will keep feeding the growing domestic economy. The real
Research Team
macro-economic challenge is of garnering another 10% of GDP as savings over the
Sujith Pillai, Sandeep Nalge, Tara Boi next decade. Banks have a big role in realising this objective. Initially the
Photographers
government thought it could persuade public sector banks to merge and thus create
A Srinivas, Mahindra Parikh, Vasant Prabhu, scale. There is a counterview that such mergers cannot be forced in a top down
Prashant Nadkar, Ganesh Shirsekar, manner, and must be effected in a bottom-up organic way based on real synergies.
Dilip Kagda, Pradip Das, Ritika Jain
The jury is still out on this one.
Design Team Pranab Mukherjee intends to create more competition by issuing new banking
Manoj Bhramar, P L Santosh,
M P Singh, Rohnit Phore licenses. This is good news ; more competition will strengthen the domestic
financial sector and will create conditions for consolidation.
Marketing Co-ordinators
The Express Group This year FE best Banks has introduced a new test –liquidity which measures
Space Marketing Team how much a bank is in a position to meet its liabilities with current assets. In this
Production context, some banks which had a much more diversified base of small depositors
B R Tipnis & Team had lower bulk borrowings to meet growth on the lending side. Many banks are now
Printed for the proprietors, returning to the virtue of lowering the borrowing to deposit ratio. We hope the
THE INDIAN EXPRESS LIMITED,
by Ms Vaidehi Thakar at
analysin the FE Best Banks Awards would help in creating new standards for India’s
The Indian Express Press, Plot No. EL-208, banks to move to the next level of globalization as well as localization i.e taking
TTC Industrial Area, Mahape, Navi banking to the next few hundred million unbanked in rural India. We are thankful to
Mumbai 400 710 and published from
Express Towers, our knowledge partner Ernst & Young for evolving newer standards to assess the
Nariman Point, Mumbai 400 021. strength, profitability and efficiency of banks.

■ Copyright: The Indian Express Limited.


All rights reserved. Reproduction in any manner,
electronic or otherwise, in whole or in part, without
prior written permission is prohibited. M K VENU

4 ៉ 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
THEME STORY

Illustration:
ROHNIT PHORE

Gamechangers in
the Indian banking sector
Viren H Mehta domestic system with the best in the International experience with
world, even if it appeared financial inclusion has sufficiently

T
HE Indian banking sector has conservative at times. proved that achieving growth,
emerged as one of the strongest As the world recovers from the aggressively tackling competition and
drivers of India’s economic global financial crisis, Indian banking social inclusion can go hand in hand.
growth. Positive changes witnessed in has remained resilient while con- Indian banks will tremendously
the last two decades have impacted tinuing to provide growth benefit themselves and the society by
every aspect of banking, ranging from opportunities. With the increased developing focused strategies to
regulatory standards to customer participation of new private sector augment the outreach of their
management. Indian banks adapting and foreign banks, the Indian banking services to attract the mass market
to the changing landscape along with industry has become fiercely com- and consider it as a potential business
the vision of the regulator and the petitive. Competition will be further opportunity than as a regulatory
Government in shaping the future intensified with the proposed entry of mandate.
growth of banking were two of the new private players and non banking As urban markets get adequately
noteworthy features of this financial companies (NBFCs). penetrated the competition to sustain
transition. and grow the market share, maintain
While banks evolved their Financial inclusion margins will force banks to look for
strategies in response to increasing Given the sheer size of the newer markets. With rural
competition and changing customer unbanked population in India, the development gaining a prominent
requirements, the regulator guided its goal of financial inclusion not only position on government agenda,
growth with policies of gradual carries tremendous social appeal, but income, awareness and aspirations of
liberalisation and benchmarking the also makes definite economic sense. the rural population are bound to

6 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


THEME STORY

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

8 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


METHODOLOGY ៑ RATIONALE

Illustration:
ROHNIT PHORE

Looking to strengthen &


consolidate, maintain credit
quality & profitability
Husain Diwan and Viren H Mehta Recovery" is now the focus of in the Indian banking sector - 27 pub-
regulatory strategy. lic sector banks, 13 old private sector

T
HIS year’s edition of the FE-EY Despite the financial turbulence, banks, 6 new private sector banks
India’s Best Banks Survey is set the economic growth of India and 12 foreign banks based on their
against the backdrop of remained reasonably unscathed. natural genres.
recovery in the global economy after As ever, each category of banks - Five major criteria were selected
the widespread financial crisis. The public, old private, new private and to compare performance of the
Indian economy continued to grow at foreign banks face its own unique Indian banks. These criteria are -
a decent rate as compared to the rest of challenges ranging from credit Strength and Soundness, Credit
the world. However, the current crisis defaults and restructuring of loans, Quality, Growth, Profitability and
has exposed certain limitations and liquidity, reputation and dwindling Efficiency. Considering the current
weaknesses. Liquidity problems and net interest margins to technology scenario of Indian banking, compli-
credit defaults have made banks more and manpower. mented with moderate economic
risk-averse. A gradual shift from Considering these aspects, Ernst growth, we believe every Indian
"Managing Crisis" to "Managing & Young has ranked the players with- bank would be evaluating itself and

10 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


METHODOLOGY ៑ RATIONALE

essential that banks operate and


‘sweat’ their resources efficiently.
Hence, it is important to evaluate a
bank’s performance based on effi-
ciency with which it has used its
human, technological and financial
resources. Therefore, Efficiency has
been selected as the last major crite-
rion with a weight of 0.15.
Further, six sub-criteria have also
been selected within each major cri-
teria to cover the entire spectrum
within each of the major criterion.
Size, in terms of Capital,
Networth and Total Assets, are indi-
cators of the fundamental strength of
a bank around the world, whereas,
Adequacy of Capital, portion of
Borrowings as compared to Deposits
and Liquidity represent soundness
and stability of a bank. Liquidity has
been calculated based on the maturi-
ty pattern-upto one year of advances
and investments less deposits and
borrowings. Accordingly, these sub-
criteria were selected to measure
making peer comparison based on Viren H Mehta (left) and banks based on their Strength and
the major criteria selected as above. Husain Diwan of Ernst & Young Soundness. Banks are often com-
Trust of the depositors on a bank pared using Total Assets as a bench-
and trust of the bank on its borrow- banks’ strategies for market domi- mark. In the current economic con-
ers continue to form the foundation nance. Therefore, banking assets and text where efficiency in use of capi-
of the banking business. The meas- earnings grew along with the entire tal and effectiveness of deployment
ure of this trust is the Strength and economy, but the leaders of the pack of deposits are more respected, a
Soundness of a bank. The ability of were required to stand out. weight of 0.20 is assigned to Total
a bank to absorb shocks is dependent Accordingly, Growth is the third Assets. Networth comprises both
on its strength and soundness. major criterion selected with an total capital and accumulated profits
Accordingly, Strength and Soundness assigned weight of 0.20. and accordingly, is assigned the
has been selected the first criterion With India experiencing a recov- weight of 0.20, followed by Liquidity
to measure Indian banks with high- ery in many areas of the economy in and extent of reliance on shorter
est weight of 0.25. the year gone by, it is only expected duration funds as compared to
As a result of greater emphasis on that there is a consequential impact deposits (Borrowing/Deposits Ratio)
higher exposure to sensitive sectors, on the financiers of the economy. In with both being assigned weights of
consumption loans, and restructur- these times, it is imperative that the 0.20 and 0.15 respectively. Capital
ing of debt, Credit Quality is once banks should have a minimum Adequacy Ratio and Core Capital are
again a key factor on which Indian threshold in terms of size and ade- powerful indicators of a bank’s
bank’s performance would revolve quacy of capital to reflect soundness inherent strengths. However, very
and is therefore selected as the sec- and maintain an improved credit high Capital Adequacy Ratio and
ond criterion. With the global melt- quality. However, all these must be Core Capital could also mean ineffi-
down and defaults in credit repay- achieved whilst maintaining prof- cient use of capital. Therefore, a
ment due to liquidity and confidence itability. Therefore, Profitability is lower weight of 0.15 is assigned to
concerns, admittedly, Credit Quality selected as the fourth major criterion Capital Adequacy Ratio and 0.10 to
has re-emerged as a concern. Hence, and assigned a weight of 0.20 match- Core Capital.
the weight for Credit Quality has ing the imperative for banks to Increase in Gross NPA,
been assigned a weight of 0.20. achieve growth combined with quali- Restructured Loans, Net
The slow economic growth experi- ty assets. NPA/Networth, Gross NPA/Gross
enced in FY09 was mirrored in the In the environment of upward Advances, Increase in Gross
growth of Indian banks. Intense pressure on interest rates, demand- NPA/Increase in Gross Advances
competitive forces played a very ing customers, and greater need for and Increase in Net NPA/Increase in
important role in determining financial inclusion, it is absolutely Net Advances are the sub-criteria

12 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


METHODOLOGY ៑ RATIONALE

selected to compare banks on Credit nance of their networth. Hence, this ance, improved technology platforms
Quality. The rate of increase in gross sub-criteria is assigned a weight of demand that the human, technologi-
non-performing advances compared 0.10 that are a notch lower in cal and financial resources be more
with the rate of increase in gross comparison with other aforesaid efficiently deployed and leveraged.
advances, and the rate of increase in sub-criteria. Therefore, Spread/Total Assets,
net non-performing advances com- Return on Assets, Yield on Operating Expenses/Total Assets,
pared with the rate of increase in net Advances, Return on Networth, Cost Business Per Employee, Profit Per
advances are considered to be of of Deposits, Cost-Income Ratio and Employee, Non-Interest
relatively higher importance to a Return on Investments are the sub- Income/Total Assets, Profit Per
bank’s management. Accordingly, criteria selected to measure banks Branch are selected as sub-criteria to
these sub-criteria are assigned the based on Profitability. The stakehold- measure Efficiency amongst banks
highest weights of 0.25 to assess ers would closely focus on Return on in India.
Credit Quality. The increase of Gross Assets and Return on Shareholders’ Spread/Total Assets and
NPA has been assigned the next level Funds i.e., Networth. Thus, these Operating Expenses/Total Assets
weight of 0.20. One of the policy sub-criteria are also assigned higher measure Efficiency in use of
measures to assist businesses to tide weights of 0.20. Currently, different resources and these are assigned
over the economic slowdown was to constituents of banks would focus at weights of 0.25 and 0.15 respectively.
encourage banks to restructure loans Cost of Deposits and managing costs. Business Per Employee and Profit
to customers without affecting their Per Employee measure utilisation of
classification. Through this special human capital and are assigned
regulatory accounting treatment, weights of 0.15 and 0.20 respectively.
although these continue to be classi- With the objective of garnering
fied as performing, they evidence deposits and penetrating under
inherent credit weakness. banked areas and population, Indian
Therefore, the quantum of restruc- banks are increasing their branch
tured loans, introduced this year, network and accordingly profit per
and networth rendered non-perform- branch has been considered as one
ing are the next important aspects of of the sub-criteria to measure
Credit Quality and are assigned the efficiency. NII reflects the abili-
weights of 0.10. Additionally, the por- ty of the bank to charge its
tion of a bank’s gross advances com- customers for its services
prising gross non-performing and augment the bottom line
advances is assigned a lower weight of the bank without requiring alloca-
of 0.10. tion of capital and hence reflects use
Growth in Total Assets, Advances, of set organisation skills and net-
Deposits, Net Profits, Net Interest Success will be work. Therefore, the last two sub-cri-
Income (‘NII’) and Increase in Net teria are assigned weights of 0.15
Worth are selected as parameters for
predicated on how banks and 0.10 respectively.
assessing Growth. The need for shape their strategies to The results of the ranking are
increasing market share in deposits support the Indian based on financial performance of
to fuel its funding requirements of banks during FY 2009. While some
banks on an effective basis have economy emerging from may not concur with the aforesaid
resulted in assigning higher weight a slowdown dissertations, we believe that in the
to growth in Deposits of 0.30, fol- current Indian environment, the
lowed by equal weights of 0.20 for Accordingly, both these sub-criterion above ranking methodology is most
growth in Advances and Net Profits. are equally important and are also appropriate - so much so that when
Growth in Total Assets would not assigned equal weights of 0.20. stress tests were performed, the
necessarily result from growth in Whereas Yield on Advances and resultant top ranking banks were
banking operations as banks could Return on Investments are impor- significantly the same.
use the safe-habour of government tant, in the current interest rate sce- Going forward, the success for the
investment, instead of lending. nario, these sub-criteria are assigned banking industry as well as individ-
Hence it is assigned a weight of weights of 0.10, a notch lower in com- ual institutions will be predicated on
0.10. Further, with the current parison. how banks will shape their strategies
stress on net interest margins due to Banks that are able to adapt quick- to support the Indian economy
current pressure on interest rates, ly to the evolving economic environ- emerging from a slowdown, encom-
focus on improving these has also ment, are the ones that create most pass the vastly under and un-banked
sharpened. With implementation value. The increased competition for regions and population and provide
of standardised Basel II norms, human and financial capital, the much needed financing for
banks are also focussed on mainte- increased expectation on perform- Indian structure. ◆

14 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


METHODOLOGY ៑ RATIONALE

៑ FE-EY India’s Best Banks Survey (e) Net Profits Growth (0.20)
(f) Deposits Growth (0.30)

Approach (iv) Credit Quality (0.20)


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

Framework
(c) GNPA/Gross Advances (0.10)
(d) Increase in Gross Non-Performing
Assets (‘GNPA’) (0.20)
(e) Increase in GNPA/Increase in
1. Banks were categorised into public sector banks Gross Advances (0.25)
(‘PSB’), old private sector banks (‘OPSB’), new private (f) Increase in NNPA/Increase in Net
sector banks (‘NPSB’) and foreign banks (‘FB’). With the Advances (0.25)
objective of making the comparison more meaningful, (v) Strength and Soundness (0.25)
banks with total assets less than Rs 5,000 crore as on (a) Core Capital (0.10)
March 31, 2009 and banks that ceased to exist in India (b) Capital Adequacy (0.15)
during 2008-2009; were not considered for the rankings. (c) Borrowings/Deposit Ratio (0.15)
2. Financial information for the year ending March (d) Liquidity (0.20)
31, 2009 relating to each of the banks falling into the (e) Total Assets (0.20)
aforesaid categories was collected from the data avail- (f) Networth (0.20)
able from the Reserve Bank of India. To ensure consis- The rationale for selecting each of the sub-criteria
tency, only the published information was used. and assignment of their respective weights is dis-
3. Five different major criteria were identified cussed in above-mentioned article.
against which the Indian banks were to be ranked. 5. Banks were ranked, category-wise, within each of
These criteria are: (i) Efficiency, (ii) Profitability, (iii) the aforesaid sub-criteria. These sub-criteria ranks
Growth, (iv) Credit Quality, and (v) Strength and were multiplied with sub-criteria weights and the
Soundness. Considering the current banking, industri- weighted sub-criteria ranks were carried over to each
al and over-all economic scenario, pertinent weights of the major criteria. The sub-criteria ranks were then
were assigned to each of the major criterion. The multiplied by the major-criteria weights. The resultant
rationale for selecting each of the criteria and assign- weighted major-criteria ranks were aggregated to
ment of their respective weights is discussed in the determine the best bank in each of the four categories
above-mentioned article. and each of the five criteria.
4. Six sub-criterion were selected within each of the 6. As discussed in the abovementioned article, since
aforesaid major criteria, which would cover the vari- all the banks, irrespective of their ownership (catego-
ous aspects within the aforesaid criteria. Considering ry), compete in the same market place, vie for the same
the current banking, industrial and over-all economic customers and are faced with the same situation, it
scenario, pertinent weights were assigned to each of was deemed appropriate to determine a best bank
the sub-criterion. These sub-criteria and their respec- within each of the major-criteria selected by us. Here
tive weights (in brackets) are: the same aforesaid process was followed, but the banks
(i) Efficiency (0.15) were not spilt into their respective categories.
(a) Non-Interest Income/Total Assets (0.10) 7. While ranking banks of the aforesaid 30 parame-
(b) Business per Employee (0.15) ters, it is found that banks with total assets of less
(c) Profit per Branch (0.15) than Rs 5,000 crore compare favourably against larger
(d) Operating Expenses/Total Assets (0.15) banks. These are primarily foreign banks that operate
(e) Profit per Employee (0.20) in India in a very limited manner. Including these
(f) Spread/Total Assets (0.25) banks often distort the results and thereby, render the
(ii) Profitability (0.20) ranking less meaningful. Accordingly, banks with total
(a) Yield on Advances (0.10) assets less than Rs 5,000 crore have been excluded.
(b) Return on Investments (0.10) 8. Also excluded are banks that merged their opera-
(c) Return on Assets (0.20) tions with other banks during 2008-09, e.g., pursuant to
(d) Cost of Deposits (0.20) the merger of State Bank of Saurashtra with State Bank
(e) Return on Networth (0.20) of India, the parameters of the merged entity are taken
(f) Cost/Income Ratio (0.20) for 2009, whereas the parameters of erstwhile State Bank
(iii) Growth (0.20) of Saurashtra have been disregarded for 2009.
(a) Total Assets Growth (0.10)
(b) Net Interest Income (‘NII’) Growth (0.10) Team Ernst &Young: Viren H Mehta, Husain Diwan,
(c) Increase in Networth (0.10) Tanvi Vedak, Surendrakumar Mundra, Karan Shah
(d) Advances Growth (0.20) and Vikas Kabra

16 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


PUNJAB NATIONAL BANK ៑ NATIONALISED BANK ៑ RANK: 1

18 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


K R KAMATH, MD&CEO, Punjab National Bank The country is going to witness a
dramatic increase in infrastructure

‘We aspires to become spending as per the planned


expenditure outlined in the 11th Five
Year Plan. This would require banks
to enhance their capital and

a global bank’ strengthen their balance sheets to be


able to finance such projects and take
a larger share.
Globalisation of Indian corporates
Punjab National Bank (PNB) is fast banks were lying low during the has also put pressure on Indian banks
emerging as a global financial economic slowdown gave an to globalise and have a greater
powerhouse. KR Kamath, CMD, PNB advantage to public sector banks presence abroad. To offer world class
shares his views with Sitanshu like you to move upward in the service to world class corporates and
Swain and Kumud Das of the business? satisfy their demands for
Financial Express about the bank’s As I have already said, the crisis sophisticated products, the banks
multi-pronged strategies to achieve brought opportunities as well and would need to strengthen themselves
rapid growth. Excerpts: PNB cashed in on those opportunities through consolidation.
to convert them into business, A large chunk of our population
The bank has really turned whether in the form of additional still continues to be out of the ambit
around and climbed upwards in loans or even restructuring of some of financial services and financial
the last two years in its existing portfolios. The bank was at inclusion is one of the most
performance. How has the bank the centre stage of operations when important steps towards inclusive
achieved this feat? others moved away during times of growth.
Government ownership and good crisis and downturn. While we did Having said that, let me also add
governance practices of Indian PSBs grow, it had nothing to do with the that we are not in a hurry. For the last
have proved to be pillars of strength business of the private sector and couple of years there is a healthy
in times of economic downturn. foreign banks, since our areas of debate going on, which is ironing out
Every crisis brings with it operation are vastly different. the differences between various
opportunities. Punjab National Bank stakeholders on this issue. However,
was in the forefront to identify such The fact that the bank is a whenever the opportune time comes,
opportunities arising out of the second largest PSB gives you extra we will not hesitate to make the right
global slowdown and converted it into responsibility in the consolidation moves.
business while supporting customers space. What are your plans on this,
to handle the situation with as the government is keen to take What is your future vision for
confidence. the consolidation agenda forward? the bank?
In addition, the bank’s There is no denying the fact that The bank has envisioned
countrywide presence even deep into the banks in India need to consolidate ambitious growth targets for the
remote/rural areas gives it an edge to become bigger and stronger for a period ending 2013. The bank plans to
over its peers in the form of variety of reasons. grow its business to Rs 10 lakh crore
availability of low cost resources. The The banks in India are very small by 2013 and increase its customer base
excellent IT capabilities set up by the as compared to the global banks and to 15 crore.
bank facilitate handling of larger hence to become a global player, PNB aspires to become a global
volumes in an efficient way. The consolidation is the only way ahead. It bank and plans to implement the best
sound fundamentals of the bank also would be worth mentioning that the global practices to effectively compete
lent support to the upward movement list of 1000 World banks compiled by in the market by providing a complete
of the bank. “The Banker, London” in 2009, carries range of financial services. The bank
Our conservative approach and the names of only 32 Indian banks. would also make efforts to sustain its
robust risk management practices The biggest Indian bank (SBI) is leadership position amongst
helped us to keep our profitability placed at the 76th position in terms of nationalised banks in all domestic
intact. The bank’s corporate assets, with $256 billion, wherein the operations, in financial inclusion, in
governance framework helped in first rank has been bagged by Royal adopting best risk management
meeting aspirations of various Bank of Scotland with an asset size of practices, in implementing global
stakeholders in a transparent $3,500 billion. Thus, to be able to face best practice in corporate governance
manner. All these facilitated the competition from foreign players, and corporate social responsibility
bank’s superior performance. banks would need to consolidate, and in HR policies. The bank also
though such moves need not be aspires to become a universal bank,
Do you think the fact that predatory alone. Rather, they could be providing a complete range of
private sector banks and foreign collaborative as well. financial services under one roof. ◆

THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 19


BANK OF BARODA ៑ NATIONALISED BANK ៑ RANK: 2

MD Mallya, CMD, Bank of Baroda

‘The whole idea of


banking is changing’
MD Mallya, CMD, Bank of Baroda We want to change the entire
speaks to FE’s Sitanshu Swain & concept of work-flow at the branch.
Kumud Das about the turn around We would like to make all our branch
strategies of the bank. Excerpts: outlets as marketing offices and push
all the time consuming routine work
How did the bank unlock its to a centralised back office.
potential? The idea is to ensure that people at
The bank has great potential. I the bank should be able to afford
should put it on record that it is the customer services in a much better
good work done by my predecessors way. People at the branch will be in a
that has brought the bank to this level. position to do marketing of products
Two-three very significant changes and services. The idea is to make
have been made at the bank over a business development faster which is
period of three to four years, which turn will boost productivity and
have also contributed to a make-over finally, improve customer service.
of the bank. Hence, we have now laid down
One is on the technology side. norms on how banking should be
Second is the brand building exercise. done at a branch.
The change in the entire brand has We have identified three branches
helped us to develop strong visibility in Mumbai, namely Bandra, Crawford
and unlock the value of the bank. Market and Colaba and have
Having a brand ambassador was itself implemented the project in those
a concept, which was something new branches on a pilot basis. These three
to public sector banks. branches are now working on the new
concept of customer service.
What are the new initiatives you We have seen our ATM hits go up.
have taken after you joined? We have a seen substantial number of
Among many things, we have taken Internet-based transactions
two important initiatives. Last year, happening in banking. So, these
we took up a project of business positive developments have already
process reengineering (BPR). Having taken place. We are trying to learn
put the technology in place, it is the from our experience at the pilot when
next step to ensure that you harness we roll it out across our entire
the technology pattern for business network.
growth through improving customer
care services, which need to be What are your other agenda?
simplified. The project is known as Our balance sheet size till March,
Project Navnirman. ’09 was at Rs 3,37,000 crore and it is
The second project is known as likely to go up to Rs 4,05,000 crore by
Baroda Next, which is being headed March, ’10. We see it to be at Rs 5,00,000
by an officer in the rank of a general crore by March, 2011. Fifteen lakh
manager. Basically, it is a BPR project. customers will be added to our fold by
This initiative was taken up by us March, 2011. Our whole focus is on the
during the last year itself. Therefore liability side. Still, I am not
we started searching for a consultant compromising on the quality of
who could help us in realising this assets.We are also expanding our
goal. overseas business. This year, we are
We appointed McKinsy and the going to recruit 3,500 people including
project has already begun. 2,000 officers. ◆

20 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 21
HDFC BANK ៑ NEW PRIVATE SECTOR BANK ៑ RANK: 1 ៑ STRENGTH ៑ RANK: 1 ៑ GROWTH ៑ RANK: 1

Aditya Puri, MD&CEO, HDFC Bank Banks been raising deposit rates?
What is your view?

‘We are a delta on the We haven’t raised rates across


tenures but for some shorter and some
longer tenure deposits, reflecting the
increase in rates in the system at the

Indian economy’ long end. Even if we raise rates now,


the actual momentum comes in only
after about three months with a lag and
so by then we would have raised rates
Steered by Aditya Puri, managing deposit cost. As for the marginal cost, by between 0.25 and 0.5%, which is the
director, HDFC Bank has grown at a banks may use the 90-day term deposit kind of increase we are expecting in
steady 30%. He speaks with Shobhana or the 180-day term deposit rate. overall yields, not particularly short-
Subramanian and Saikat Das of the term yields.
Financial Express about interest rates, Where do you see interest rates
inflation and increasing deposit rates. headed in the next few months? Would this increase hurt the
Excerpts: Ten-year yield go up. Whether demand for loans?
interest rates go up, depends on No. The rates that you are seeing
How do you see the base rate sentiment and how much they are able today for autos or homes are a function
taking shape? to control inflation. The government of a slowing economy and excess
The base rate is not going to change has clearly announced a lower liquidity. Car loans were at 9-9.5%, so if
the fundamentals of banking. The borrowing programme and so one can they move up back there, it’s not the
banks have been taking into account expect a yield of between 8-8.5% if they end of the world. It’s hard to see a year
the tenure of the loan, the risk profile of meet their commitment and depending ahead in today’s environment but we
clients and the liquidity available while on inflation being higher than that don’t see any big move in interest rates.
lending. The RBI is saying it wants towards the end of the year. Quite a bit We need to see what happens on
greater transparency than what the of the inflation is priced in the 8% and liquidity, inflation, private demand and
BPLR provided, possibly because a lot the general expectation is that it may go
of lending has been done to the AAA to 8.5% by June-July. Unless something
corporate at below the BPLR. Now, this untoward happens, yields should not
is a function of excess liquidity in the go up beyond this. In fact, short- and
market and also competition. So what medium-term rates, even up to one or
happens is that the person borrowing a two years, may not go up, since
higher amount for a shorter tenure will liquidity is still in excess of Rs 70,000
get a cheaper rate. The base rate has crore in reverse repo, despite the hike
been defined as the bank’s base cost but in the cash reserve ratio. Some amount
that’s not the base cost of the total is there with the mutual funds as well.
deposits or of a deposit of any tenure.
So a bank is free to take the base cost of
a 90-day deposit.

Will there be a big difference


between the base rates of banks?
Normally, loans are priced either
over marginal cost or over average cost.
Both are safe. But for a new loan, banks
use the marginal rate so banks may opt
for the marginal cost. I don’t think
there will be too much of a difference
when the new system sets in, because
the basic business hasn’t changed. So
it’s possible SBI may set it at 8%, PNB
may set it at 7%. The rate will move
towards the lower side rather than the
higher side. I don’t see interest rates
moving up systemically. There might
have been a systemic shift had RBI said
that banks would have to use the
average cost of deposits to calculate the

22 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


the GDP. We are seeing some pick-up in network from 725 to1,720 branches. Our ratio of 52%. Is this sustainable?
corporate borrowing but not a runaway business model is different, it’s based No, it’s not sustainable. The reason
pick up. This pick up is for working on branches and that’s why we are we have 52% CASA is because deposits
capital. Drawdowns on investment comfortable with retail loans and our have been growing slowly, so there’s the
have not happened. Companies say cost of funds. Not only is our CASA denominator effect and once growth
they are moving ahead on capex but we high, around 60% of our personal loans picks up we will need to borrow more
have to see greater evidence of it. Retail are sold through branches, and 70% of fixed deposits. I would say our normal
demand for the system as a whole our cards are sold to our customers range for CASA is between 45 and 48%.
hasn’t been great but we are through branches as well. They are an Our asset growth is a function of GDP
experiencing good demand. If integral part of our strategy. growth, so if GDP grows at 8%, the
production of cars increases by 30%, market will grow at 22-23% and we’ll
demand for car loans will also HDFC Bank has an grow by 2-3 % more than that.
increase. Actually, the demand for enviable CASA
home loans never faltered. If Is the bank looking for an
GDP grows by 8%, credit de- international presence?
mand can grow by about Our international business is based
20% next year. HDFC Bank on our strengths in India. We have
normally grows faster correspondent arrangements with
than the system. people all over the Middle East and
other parts of the world and are major
What is the bank’s players in NRI remittances. Essentially,
immediate term we are a delta on the Indian economy. ◆
strategy for growth?
We have just doubled our
capacity and right now don’t
need to look further. We just
doubled our distribution

THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 23


AXIS BANK ៑ NEW PRIVATE SECTOR BANK ៑ RANK: 2

24 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


Shikha Sharma, MD&CEO, Axis Bank depends on the kind of players who
come in.

‘Competition is always How does Axis Bank plan to tap the


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

good for the customer’ has more of a presence in the tier II


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

THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 25


FEDERAL BANK ៑ OLD PRIVATE SECTOR BANK ៑ RANK: 1

26 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


M VENUGOPALAN, Chairman, Federal Bank undertaken towards imparting
financial education?

‘We want to emerge as We have launched a trust


christened "Federal Ashwas" for the
establishment and running of
"Federal Ashwas Financial Literacy

a prominent lender to and Credit Counselling Centres"


(FAFLCC) and three FAFLCC centres
have already started functioning in
the Alleppey District.

the common man’ We are in the process of


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

THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 27


TAMILNAD MERCANTILE BANK ៑ OLD PRIVATE SECTOR BANK ៑ RANK: 2

30 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


G Nagamal Reddy, MD&CEO, Tamilnad Mercantile Bank branch network.
During the next fiscal we would
also provide special focus for CASA by

‘Small-sized banks play giving specific targets to rural and


semi urban branches to canvass SB
deposits aggressively, whereas metro

a significant role’
and urban branches would be urged to
concentrate on current accounts.
Corporates would be approached for
canvassing salaried accounts with a
bouquet of services leveraging the
G Nagamal Reddy, MD & CEO, areas for growth. The speed in fullest use of technology: anywhere
Tamilnad Mercantile Bank speaks delivering corporate and retail credit banking, RTGS, NEFT, debit card, net
with Sajan Kumar of the Financial is another areas the bank has planned banking, e-payment etc.
Express about being a small bank with to concentrate on. The bank has also
more regional flavour, where TMB entered into a MoU with CRISIL for How is the year shaping up?
stands in the changing atmosphere, the rating SME borrowers. A thorough understanding of the
controversy over the ownership issue of prevailing market and customers’
the bank and other things. Excerpts: How are you planning to improve changing requirements, expectations
your net interest margins? and the efforts taken by employees at
Being a small bank with a more The bank witnessed a net interest all levels to meet the expectations of
regional flavour, what kind of margin of 3.55% as on February 28, customers, as well as the preparation
business focus do you have in 2010, which is due to the increased to expand the revenue streams for
terms of retail and corporate? focus on building low cost liabilities sustainable growth, would work well
Small-sized banks contribute and high yielding assets in SME and for building a new brand image and
significantly to the total market share retail sectors. health for the bank.
of scheduled commercial banks. Our CASA has improved by 19% when The various initiatives taken by the
regional presence and sense of compared to the previous year ended bank to improve the fee-based income
belonging have given us a prime March 31, 2009. The credit to the retail will boost the bottom line of the bank
position. sector has also grown by 24%. The net in the current year. Due to the focus on
TMB is concentrating on building profit of the bank has improved by building a higher level of efficiency
safer and more remunerative assets. 16% up to February 2010. The full and strengthening the margin by
Our strategy is to focus on corporate results of various initiatives are cutting the proportion of high cost
and retail business, which would fetch expected to reflect in the bank’s deposits and the size of low yielding
a mix of quality and high yielding current year balance sheet. assets, the bank added 1,86,000 new
assets. Our incremental CD ratio over customers. The bank is harnessing its
March 2009 works out to 136%, which How difficult is for you to raise low strength of technology. Customers
shows our aggressive growth in cost deposits since you don’t have expect a major change in our bank
advances. Plans are on to open much of a branch network? both in terms of capital structure and
specialised branches at metros to take As the spread started thinning services,
focussed care of the credit from 3.53% in the year 2008 to 3.37% in
requirements of corporate the year 2009, the bank decided to Has the controversy over the
establishments. The bank already has improve the CASA component, which ownership issue been settled?
a lending portfolio of 37% to will help in bringing down the cost of Since the new board is in place and
corporate credit. The bank has deposits. The necessity of enhancing the pending AGMs for the years 2008-
already built a retail asset portfolio of the CASA deposits to improve the 2009 have also been held, I feel that the
63%. The bank has 24 retail schemes bottom line of the bank percolated ownership issue is resolved by the
in the market and four or five down to the people in the branch level competent court. With enhancement
schemes, including home, education, and permeated the organisation. in the level of corporate governance
car and SME credit. CASA has become the mantra of the after holding the AGMs and stability
In the retail segment, the bank bank. As the bank has 216 branches in its operations and consistency in
finds huge opportunities and the across the country, the mantra of earnings, the bank will be able to
delinquency rate is considerably less CASA was echoed in 12 states and in provide better value addition to its
due to its cautious approach. We the hearts of 2,250 TMBians. As a stake holders.
believe that through identifying result, the bank was able to mobilise Efforts will be made to make the
credit-worthy retail proposals, the Rs 402 crore of CASA deposits, an bank more dynamic, in the sense that
bank can expand its retail credit increase of 19% growth over March it will be adjudged not only as the best
without being aggressive. The bank 2009, which works out to 24% of the bank but also the fastest growing
identified retail as one of the strategic total deposits with the existing bank under each parameter. ◆

THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 31


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

32 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


KALPANA MORPARIA, CEO, JP Morgan institutional broking business. So, we
have a dedicated sales force, which not

‘We will cater with 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

a suite of services’ invest in India but don’t necessarily


have a dedicated vehicle to access
notes or eventually a registration
with the Securities and Exchange
In India, JP Morgan runs various management (DCM) and mergers and Board of India (Sebi).
businesses like providing companies acquisitions (M&A). We have the
with cash management services, trade global corporate bank, which is a joint Are you looking at entering the
finance and custody services, venture between investment banking retail space?
investment banking, helping and transaction banking. We believe that retail banking is
companies raise debt and equity. something that you can cover out of
Speaking with Mahalakshmi What does your client base look mass banking. We believe that Indian
Hariharan from The Financial like? Which are the products and banks have a very unique proposition
Express, Kalpana Morparia, CEO, services that you cater to? to deal with the customers in
JP Morgan says the bank intends to On the corporate side there are managing deposits, mortgages, auto
stay within its niche segment rather multi-national corporations (MNCs) credit and also understanding the
than try to compete with its larger peers operating in India. The small customer. The kind of distribution
who are retail-focussed. Excerpts: corporate businesses have affiliates that they have and their ability to
and subsidiaries in India, who need build a great recovery mechanism is
Which are the businesses that you coverage for cash management to also something very unique. Thus, we
would like to focus on in India? remittances, sometimes even to credit feel that they will always be superior
In India, we run the investment on the back of their parent support. If to foreign banks. The only thing we
banking division, asset management you think about several large think that we can really capture in the
and wealth management business and companies that have their retail space is remittances coming
treasury securities and services. subsidiaries here, we would be the from the US into India and to that
Within the treasury securities and typical banker that would cover them. extent we may look at having a retail
services, it is normally transaction The second part is Indian companies deposit taking franchise if my branch
banking and custody, giving a that are increasingly globalising. This license approval allows me to do so.
platform to corporates and investors is because they are in constant need of We will be a niche player in this
for cash management, trade finance acquisition financing, funding for segment. Retail credit is not
and custody business. Investment their overseas businesses, managing something we are looking at.
banking comprises of the markets cash across geographies and across
business, constituting fixed income trade finance and currencies. So, on What are your hiring plans?
and commodities. This includes the transaction banking side, there is We have two sets of employees in
proprietary trading, client flows, cash management and trade finance the bank-one is the business, which is
forex flows and forex derivatives, across the board. less than 500 people and I don’t see
followed by the equity institutional The third set of clients are what I that growing beyond a little over that
broking business. These are a part of call ‘local local’. There may not be a number. The other is off-shoring,
our markets related businesses. Then, big cross border angle to it but the where we will continue hiring.
we have a small principle investment reason why we would cover them and
business where we commit JP would give them transaction banking What is your share in the market?
Morgan’s capital to take positions in and credit is because we see we can We track our market share across
equity, hybrid and high yield debt for add a lot of value to them on a purely all our businesses. In some of the
Indian companies. We also have a corporate finance side. When they transaction banking business and
large corporate finance and want to raise capital or do an M&A DCM businesses that we do, we look at
coverage business, which transaction, we would help them out. the market share in context with
covers equity capital On the investor side, we deal a lot with foreign players.
markets (ECM), all the major funds. We have a Last year, we were the number one
derivatives relationship with a lot of fund houses player across the ECM business. In
collateral that are investing across the globe. We the institutional broking business, we
cover them through our were in the top four. In the M&A space,
custodian business not too many deals happened last year,
and the but we believe we would have been in
the top two or three. ◆

THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 33


CITI ៑ FOREIGN BANK ៑ RANK: 2 ៑ PROFITABILITY ៑ RANK: 1

MARK T ROBINSON, CEO, Citi substantial capital for proprietary


investments. We are amongst the best

‘We wish to be an capitalised banks in the industry as


indeed are our non-bank finance
companies.
With respect to the cost of funds, we

efficient franchise’ have rigorous parameters for


structural liquidity and lay a lot of
emphasis on CASA and other non-
interest bearing sources. These come
In the recent past, Citibank India returns from our asset products and to us through our transaction banking
has managed to tide over the global the cross-sell it generates at a firm business and the consumer business
financial crisis and build a strong level. Our retail and corporate lending and we deploy this liquidity with a
business in India and has also strategies are driven by this approach. judicious modelling of cost criteria to
participated in several landmark Even during the peak of the global manage our balance sheet risk.
deals. Speaking with Shobhana credit crisis we were open for
Subramanian and Mahalakshmi business and continued to grow assets Which are the areas that you are
Hariharan of the Financial Express, judiciously in our target segments. actively lending to? What’s your
Mark T Robinson, CEO, Citi reveals We will continue to meet the needs share in the secured and
his plans for the future. Excerpts: of our corporate clients through a unsecured segments?
combination of balance sheet items It is very difficult to provide you
How has the year 2009 been for the and innovative structures. with an accurate assessment of
bank? What will Citi focus on in On the retail banking front, we market share in the secured and
2010? follow the principles of prudent unsecured segment. However, we are
I would characterise 2009 as a year lending and providing value added seeing a steady shift to secured
where we repositioned our businesses and innovative cards and asset lending in our consumer portfolio,
to capture the opportunities products to our customers. Our stated whereas in the corporate portfolio,
presented by the growing Indian objective is to be the industry-leading lending is based on a careful
economy in the years ahead. We drew premium, high quality, efficient evaluation of collateral, cash flows,
up a strategic plan with an emphasis banking franchise. obligor quality and other criteria.
on the sectors where we saw our
natural strengths. Our businesses are By how much are you looking to Your views on growth and interest
fit to be executed with our expansion grow your balance sheet? rates and the base rate system? Do
plans. Much of this is consistent with We are committed to growing our you anticipate rate hikes in the
whatever is happening in Citi globally. corporate relationships and near future?
We will be growing our securities and supporting their funding I feel that the recent budget has
banking business and transaction requirements on balance sheet provided a very balanced approach to
banking business in the Institutional lending as well as other forms of growth while providing for a steady
Clients Group. capital raising. We remain focussed withdrawal of the stimulus packages.
We consider the local commercial on our key target consumer markets The Reserve Bank of India is faced
bank catering to the middle market with products and services that bring with a situation where growth is
segment as a key to our future growth, value to our retail customers. We accelerating, as is inflation. I think
as also the retail consumer bank, continue to go slow on unsecured RBI will continue to display the
where we are focussing on a well- retail credit, including credit cards in balance it always has in adjusting
calibrated growth strategy, including non-target segments. these monetary instruments to
liabilities and asset products. maintain the right balance. I do expect
We continue to provide a stronger Will capital be a constraint for that in the short term there could be
customer-centric value proposition to growth? What would be the share modest hikes in the reference rates
our retail wealth management and of CASA in your deposits and the but the flow of credit to the economy
credit cards businesses, including cost of funds? will be satisfactory.
investing in world-class technology Capital has never been a constraint The base rate is an interesting
platforms. to our growth in India. Over the last development and should contribute to
few years we have consistently transparency of lending rates to
What will your strategy be in the retained our earnings and infused various customer segments of an
corporate and retail lending close to $1.8 billion of capital in the individual bank in line with their
spaces? franchise between the bank and other credit and other characteristics, while
We allocate capital based on a legal vehicles. In addition to the market forces work towards a
careful evaluation of overall returns capital that we deploy in our banking convergence of base rates across
on a risk and to this end we review the business, we are committed to banks. ◆

34 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 35
INDUSIND BANK ៑ CREDIT QUALITY ៑ RANK: 1

36 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


Romesh Sobti, MD&CEO, IndusInd Bank

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

THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 37


SEGMENT-WISE LEADERS៑

Strength & Credit Final Rank


Name Soundness Growth Profitability Efficiency Quality 2009

Best Nationalised Banks


Punjab National Bank 1 5 1 9 1.5 1
Bank of Baroda 5 2 8 3 4 2
Indian Bank 2 13 3 6 5 3
Corporation Bank 4 10 6.5 2 6 4
Bank of India 10 4 2 1 20 5
Union Bank of India 9 3 4 4 22 6
State Bank of Travancore 12 17.5 5 7 3 7
Oriental Bank of Commerce 11 8 21 10 1.5 8
State Bank of India 3 1 13 14 26 9
Canara Bank 6.5 9 14 11 24 10
Punjab & Sind Bank 22 7 12 13 8 11
Andhra Bank 16 17.5 10 15 9 12
Indian Overseas Bank 14 20 6.5 8 27 13
Syndicate Bank 17 15 18 20 10 14
State Bank of Hyderabad 18 14 15 12 19 15
IDBI Bank 25 6 27 5 13 16
Allahabad Bank 8 24.5 17 18 17 17
Dena Bank 21 12 9 19 21 18
State Bank of Bikaner & Jaipur 15 23 11 21 18 19
State Bank of Patiala 20 16 22 16 14 20
Central Bank of India 6.5 26 26 26 11 21
UCO Bank 26 11 25 24 7 22
State Bank of Indore 24 24.5 16 17 16 23
Bank of Maharashtra 23 19 20 25 15 24
State Bank of Mysore 27 21 19 22 12 25
United Bank of India 13 22 24 27 25 26
Vijaya Bank 19 27 23 23 23 27

Best New Private Sector Banks


HDFC Bank 1 1 2 4 4 1
Axis Bank 4 2 1 3 3 2
YES Bank 6 3 3 1 2 3
ICICI Bank 2 6 4 2 6 4
Indusind Bank 5 4 6 6 1 5
Kotak Mahindra Bank 3 5 5 5 5 6

Best Old Private Sector Banks


Federal Bank 1 3 4.5 1 6 1
Tamilnad Mercantile Bank 5 5 2 5 1 2
Karur Vysya Bank 6 8 3 4 2 3.5
City Union Bank 9 4 1 3 5 3.5
Jammu & Kashmir Bank 3 9 4.5 2 9 5
Dhanalakshmi Bank 8 1 9 8 3 6
South Indian Bank 2 7 7 7 11 7
Karnataka Bank 4 10 6 6 8 8
Lakshmi Vilas Bank 12 2 13 13 4 9
ING Vysya Bank 11 6 12 9 7 10
Bank of Rajasthan 7 12 8 10 10 11
Catholic Syrian Bank 10 11 11 12 12 12
Development Credit Bank 13 13 10 11 13 13

Best Foreign Banks


JP Morgan Chase Bank 8 7 1 2 2 1
Citi 2.5 5 2 4 9 2
Bank of America 6 11 3 1 4 3
Barclays Bank 1 1 11 9 7 4
Standard Chartered Bank 5 3 5 11 6 5
DBS Bank 7 2 7 8 5 6
Caylon Bank 12 10 4 3 3 7
BNP Paribas 9 4 6 7 8 8
HSBC 2.5 6 8 10 12 9
Bank of Nova Scotia 11 8 10 6 1 10
Deutsche Bank 4 9 9 5 11 11
ABN Amro Bank 10 12 12 12 10 12

38 ៉ THE FINANCIAL EXPRESS | MARCH 2010


TOPPERS OF THE FIVE KEY PARAMETERS ៑

Strength and Soundness Growth Profitability


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

40 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


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

THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 41


CATEGORY ៑ STRENGTH & SOUNDNESS

Capital Core
Rank Adequacy Capital Liquidity
2009 Name % Ranks % Ranks Rs Lakhs Ranks

Best Nationalised Banks


1 Punjab National Bank 14.03 6.5 8.98 4 (1,125,013) 15
2 Indian Bank 13.98 8 11.88 1 (727,821) 10
3 State Bank of India 14.25 3 9.38 2 (8,667,250) 27
4 Corporation Bank 13.61 9 8.90 6 (95,199) 3
5 Bank of Baroda 14.05 5 8.49 9 (4,069,497) 25
6.5 Canara Bank 14.10 4 8.01 14 (1,795,288) 19
6.5 Central Bank of India 13.12 17 6.97 22 (656,504) 9
8 Allahabad Bank 13.11 18 8.01 13 (447,020) 7
9 Union Bank of India 13.27 13 8.19 12 (1,147,456) 16
10 Bank of India 13.01 19 8.91 5 (2,417,920) 21
11 Oriental Bank of Commerce 12.98 20 9.10 3 (3,351,816) 24
12 State Bank of Travancore 14.03 6.5 8.59 8 589,507 1
13 United Bank of India 13.28 12 7.56 19 393,839 2
14 Indian Overseas Bank 13.20 15 7.88 16 (1,544,687) 18
15 State Bank of Bikaner & Jaipur 14.52 1 8.46 10 (778,361) 11
16 Andhra Bank 13.22 14 8.67 7 (1,479,751) 17
17 Syndicate Bank 12.68 21 7.85 17 (2,919,323) 23
18 State Bank of Hyderabad 11.53 27 7.14 21 (158,981) 4
19 Vijaya Bank 13.15 16 7.74 18 (2,363,560) 20
20 State Bank of Patiala 12.60 22 6.94 23 (1,032,900) 14
21 Dena Bank 12.07 23 6.76 25 (512,190) 8
22 Punjab & Sind Bank 14.35 2 8.44 11 (851,198) 12
23 Bank of Maharashtra 12.05 24 6.11 27 (914,269) 13
24 State Bank of Indore 13.46 10 7.91 15 (446,100) 6
25 IDBI Bank 11.57 26 6.81 24 (4,472,410) 26
26 UCO Bank 11.93 25 6.48 26 (2,434,730) 22
27 State Bank of Mysore 13.38 11 7.37 20 (326,585) 5

Best New Private Sector Banks


1 HDFC Bank 15.69 3 10.58 3 3,084,372 1
2 ICICI Bank 15.53 4 11.84 2 (6,928,887) 6
3 Kotak Mahindra Bank 20.01 1 16.13 1 (109,579) 3
4 Axis Bank 13.69 5 9.26 5 (2,724,561) 5
5 Indusind Bank 12.33 6 7.52 6 279,151 2
6 YES Bank 16.60 2 9.50 4 (685,138) 4

Best Old Private Sector Banks


1 Federal Bank 20.22 1 18.42 1 (675,537) 13
2 South Indian Bank 14.76 5 13.22 6 59,195 2
3 Jammu & Kashmir Bank 14.48 6 13.80 4 (213,932) 10
4 Karnataka Bank 13.48 7 10.60 9 (207,506) 9
5 Tamilnad Mercantile Bank 16.10 2 15.38 2 (131,748) 7
6 Karur Vysya Bank 14.92 4 14.40 3 (293,838) 11
7 Bank of Rajasthan 11.50 12 6.19 13 105,955 1
8 Dhanalakshmi Bank 15.38 3 13.75 5 (113,251) 5
9 City Union Bank 12.69 9 11.48 8 (152,497) 8
10 Catholic Syrian Bank 12.29 10 8.81 10.5 39,729 3
11 ING Vysya Bank 11.65 11 6.89 12 (347,057) 12
12 Lakshmi Vilas Bank 10.29 13 8.81 10.5 (78,067) 4
13 Development Credit Bank 13.30 8 11.50 7 (122,583) 6

Best Foreign Banks


1 Barclays Bank 17.07 1 16.62 1 391,562 1
2.5 Citi 13.23 7 12.42 5 (281,650) 10
2.5 HSBC 15.31 4 14.12 4 (1,071,858) 12
4 Deutsche Bank 15.25 5 14.62 3 (169,607) 7
5 Standard Chartered Bank 11.55 12 7.99 11 (174,146) 8
6 Bank of America 12.73 9 11.23 6 179,800 2
7 DBS Bank 15.70 3 10.27 8 1,708 6
8 JP Morgan Chase Bank 15.90 2 15.38 2 (175,827) 9
9 BNP Paribas 12.37 11 8.38 10 105,970 3
10 ABN Amro Bank 12.66 10 7.43 12 (811,801) 11
11 Bank of Nova Scotia 13.38 6 10.42 7 70,612 4
12 Caylon Bank 13.20 8 9.80 9 24,983 5

42 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


Borrowing Total
Deposit Assets Networth Ranks
% Ranks Rs Lakh Ranks Rs Lakhs Ranks Name 2009

2.09 14 24,691,862 2 1,465,362 2 Punjab National Bank 1


0.73 4.5 8,412,175 15 713,592 10 Indian Bank 2
7.24 24 96,443,208 1 5,794,771 1 State Bank of India 3
2.80 16.5 8,690,581 14 489,651 14 Corporation Bank 4
2.93 18 22,740,673 3 1,283,554 4 Bank of Baroda 5
3.78 20 21,964,580 5 1,220,777 5 Canara Bank 6.5
0.61 3 14,765,522 8 641,206 11 Central Bank of India 6.5
1.10 7 9,764,801 13 585,195 12 Allahabad Bank 8
2.80 16.5 16,097,551 7 874,036 7 Union Bank of India 9
5.00 22 22,550,177 4 1,349,493 3 Bank of India 10
0.73 4.5 11,258,259 11 740,345 8 Oriental Bank of Commerce 11
1.92 11 4,946,051 22 224,990 23 State Bank of Travancore 12
0.84 6 6,204,071 20 307,776 20 United Bank of India 13
6.54 23 12,107,340 10 715,097 9 Indian Overseas Bank 14
2.00 12 4,637,020 24 204,647 26 State Bank of Bikaner & Jaipur 15
2.21 15 6,846,921 18 364,699 16 Andhra Bank 16
1.89 10 13,025,567 9 501,002 13 Syndicate Bank 17
3.79 21 7,672,189 16 320,832 17 State Bank of Hyderabad 18
1.14 8 6,238,260 19 314,930 18 Vijaya Bank 19
1.51 9 6,966,544 17 313,370 19 State Bank of Patiala 20
0.12 1 4,846,051 23 217,050 24 Dena Bank 21
7.82 25 4,136,379 25 214,034 25 Punjab & Sind Bank 22
0.36 2 5,903,035 21 251,719 21 Bank of Maharashtra 23
3.19 19 3,307,589 27 156,448 27 State Bank of Indore 24
39.52 27 17,240,232 6 942,386 6 IDBI Bank 25
2.06 13 11,166,417 12 395,704 15 UCO Bank 26
8.39 26 4,048,579 26 227,104 22 State Bank of Mysore 27

1.88 1 18,327,077 2 1,465,181 2 HDFC Bank 1


30.83 5 37,930,096 1 4,988,302 1 ICICI Bank 2
37.74 6 2,871,187 4 390,552 4 Kotak Mahindra Bank 3
8.68 3 14,772,205 3 1,021,481 3 Axis Bank 4
8.40 2 2,761,468 5 166,439 5 Indusind Bank 5
13.54 4 2,290,079 6 162,422 6 YES Bank 6

2.33 10 3,885,086 1 432,586 1 Federal Bank 1


1.42 9 2,038,352 5 130,401 6 South Indian Bank 2
3.02 11 3,769,326 2 262,287 2 Jammu & Kashmir Bank 3
0.02 5 2,285,781 4 156,702 4 Karnataka Bank 4
0.34 7 1,094,329 8 99,185 8 Tamilnad Mercantile Bank 5
0.15 6 1,706,074 7 135,016 5 Karur Vysya Bank 6
0.01 4 1,722,440 6 104,558 7 Bank of Rajasthan 7
- 2 564,282 13 42,449 12 Dhanalakshmi Bank 8
- 2 925,101 9 66,092 9 City Union Bank 9
- 2 704,008 11 38,831 13 Catholic Syrian Bank 10
8.65 13 3,185,699 3 170,288 3 ING Vysya Bank 11
0.44 8 831,725 10 45,371 11 Lakshmi Vilas Bank 12
7.44 12 594,302 12 59,833 10 Development Credit Bank 13

18.67 3 2,068,863 6 500,134 4 Barclays Bank 1


35.93 5 10,526,359 1 1,151,798 1 Citi 2.5
16.55 2 9,462,039 3 1,121,432 2 HSBC 2.5
25.45 4 2,495,487 5 476,028 5 Deutsche Bank 4
15.84 1 9,749,216 2 1,027,681 3 Standard Chartered Bank 5
51.86 7 984,535 9 274,808 6 Bank of America 6
41.46 6 1,256,459 7 140,053 10 DBS Bank 7
96.10 10 1,053,123 8 251,164 7 JP Morgan Chase Bank 8
84.82 9 982,799 10 165,646 9 BNP Paribas 9
59.16 8 3,208,255 4 238,579 8 ABN Amro Bank 10
102.31 11 699,570 11 86,094 12 Bank of Nova Scotia 11
523.98 12 661,556 12 90,977 11 Caylon Bank 12

THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 43


CATEGORY ៑ GROWTH

Total Assets Deposit Advances


Rank Growth Growth Growth
2009 Name % Ranks % Ranks % Ranks

Best Nationalised Banks


1 State Bank of India 33.67 1 38.08 3 30.17 3
2 Bank of Baroda 26.62 6 26.55 7 34.94 1
3 Union Bank of India 29.83 5 33.55 4 29.98 4
4 Bank of India 26.10 7 26.46 8 25.94 11
5 Punjab National Bank 24.07 12 26.01 10 29.46 5
6 IDBI Bank 31.91 3 53.98 1 25.81 12
7 Punjab & Sind Bank 33.65 2 39.64 2 34.19 2
8 Oriental Bank of Commerce 24.12 11 26.35 9 25.54 13
9 Canara Bank 21.67 15 21.30 16 28.89 8
10 Corporation Bank 30.49 4 33.49 5 23.80 17
11 UCO Bank 24.35 10 25.42 11 24.91 15
12 Dena Bank 25.41 8 26.83 6 25.43 14
13 Indian Bank 19.31 18 18.90 21 29.18 6
14 State Bank of Hyderabad 24.51 9 24.63 13 21.84 18
15 Syndicate Bank 21.58 16 21.77 15 27.29 9
16 State Bank of Patiala 17.96 21 23.54 14 19.87 20
17.5 Andhra Bank 20.99 17 20.13 17 28.92 7
17.5 State Bank of Travancore 12.68 25 18.92 20 16.26 26
19 Bank of Maharashtra 22.59 13 25.14 12 17.09 25
20 Indian Overseas Bank 18.89 20 18.73 22 23.98 16
21 State Bank of Mysore 22.43 14 19.86 18 21.82 19
22 United Bank of India 14.23 23 16.11 24 27.05 10
23 State Bank of Bikaner & Jaipur 12.67 26 15.00 25 19.04 21
24.5 Allahabad Bank 17.73 22 18.65 23 18.26 23
24.5 State Bank of Indore 12.98 24 14.71 26 18.59 22
26 Central Bank of India 19.12 19 18.99 19 17.10 24
27 Vijaya Bank 11.03 27 13.73 27 11.92 27

Best New Private Sector Banks


1 HDFC Bank 37.61 1 41.72 1 55.90 1
2 Axis Bank 34.81 3 33.95 2 36.70 2
3 YES Bank 34.85 2 21.82 3 31.52 3
4 Indusind Bank 18.71 4 16.14 4 23.25 4
5 Kotak Mahindra Bank 1.41 5 (4.74) 5 6.90 5
6 ICICI Bank (5.13) 6 (10.67) 6 (3.24) 6

Best Old Private Sector Banks


1 Dhanalakshmi Bank 39.92 1 37.70 1 52.05 1
2 Lakshmi Vilas Bank 27.55 2 31.01 2 35.94 2
3 Federal Bank 19.52 6 24.25 5 18.45 5
4 City Union Bank 25.88 3 27.73 3 24.43 3
5 Tamilnad Mercantile Bank 23.45 5 24.72 4 23.27 4
6 ING Vysya Bank 24.73 4 21.67 6 14.34 6
7 South Indian Bank 19.27 7 19.37 9 13.38 7
8 Karur Vysya Bank 16.99 10 20.33 7 10.49 10
9 Jammu & Kashmir Bank 15.07 11 15.43 11 10.84 9
10 Karnataka Bank 18.19 8 19.49 8 8.93 11
11 Catholic Syrian Bank 18.12 9 19.09 10 11.17 8
12 Bank of Rajasthan 9.00 12 9.66 12 4.67 12
13 Development Credit Bank (21.62) 13 (23.51) 13 (19.53) 13

Best Foreign Banks


1 Barclays Bank 60.03 1 80.90 1 38.18 1
2 DBS Bank 38.28 3 18.20 2 15.17 2
3 Standard Chartered Bank 32.74 4 12.97 4 12.49 3
4 BNP Paribas 29.54 6 3.62 7 (1.64) 6
5 Citi 25.54 7 12.04 5 4.02 4
6 HSBC 24.63 8 17.25 3 (7.87) 10
7 JP Morgan Chase Bank 30.00 5 8.25 6 (33.68) 12
8 Bank of Nova Scotia (0.76) 11 (20.75) 11 0.66 5
9 Deutsche Bank 0.98 10 2.85 8 (1.81) 7
10 Caylon Bank 45.10 2 (27.89) 12 (2.73) 8
11 Bank of America 21.23 9 (0.57) 9 (2.80) 9
12 ABN Amro Bank (12.38) 12 (15.61) 10 (18.26) 11

44 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


NII Net Profit Increase in
Growth Growth Networth Ranks
% Ranks % Ranks Rs Lakhs Ranks Name 2009

22.63 18 35.55 6 891,505 1 State Bank of India 1


30.97 7 55.15 3 179,161 6 Bank of Baroda 2
33.64 4 24.48 11 139,265 9 Union Bank of India 3
30.02 8 49.66 5 290,554 2 Bank of India 4
27.04 13 50.86 4 233,528 3 Punjab National Bank 5
96.00 1 17.69 15 60,189 17 IDBI Bank 6
28.77 10 14.34 17 4,702 27 Punjab & Sind Bank 7
19.48 20 156.33 1 162,754 8 Oriental Bank of Commerce 8
33.35 5 32.42 8 170,727 7 Canara Bank 9
17.16 22 21.47 13 66,799 15 Corporation Bank 10
10.55 25 35.31 7 103,072 10 UCO Bank 11
23.95 17 17.48 16 36,984 24 Dena Bank 12
27.00 14 23.45 12 197,542 5 Indian Bank 13
31.80 6 10.56 20 51,418 19 State Bank of Hyderabad 14
25.54 16 7.64 22 71,857 13 Syndicate Bank 15
26.63 15 28.48 9 42,507 21 State Bank of Patiala 16
21.45 19 13.45 19 39,770 23 Andhra Bank 17.5
33.98 3 57.42 2 53,179 18 State Bank of Travancore 17.5
11.33 24 14.25 18 73,568 12 Bank of Maharashtra 19
17.13 23 10.27 21 228,491 4 Indian Overseas Bank 20
9.96 26 5.67 23 89,323 11 State Bank of Mysore 21
28.40 11 (42.08) 27 41,649 22 United Bank of India 22
17.48 21 28.08 10 33,327 25 State Bank of Bikaner & Jaipur 23
29.08 9 (21.15) 25 63,090 16 Allahabad Bank 24.5
28.31 12 19.20 14 24,820 26 State Bank of Indore 24.5
5.52 27 3.83 24 46,930 20 Central Bank of India 26
35.50 2 (27.35) 26 69,025 14 Vijaya Bank 27

41.95 3 41.18 4 315,459 1 HDFC Bank 1


42.58 5 69.49 2 144,412 3 Axis Bank 2
54.64 4 51.91 3 30,530 6 YES Bank 3
52.60 6 97.67 1 31,468 4 Indusind Bank 4
23.88 2 (6.06) 5 31,182 5 Kotak Mahindra Bank 5
14.55 1 (9.61) 6 306,281 2 ICICI Bank 6

22.86 7 102.07 1 25,225 3 Dhanalakshmi Bank 1


23.70 5 99.05 2 3,604 12 Lakshmi Vilas Bank 2
51.55 1 35.99 3 40,017 1 Federal Bank 3
21.42 9 20.07 6 9,406 10 City Union Bank 4
27.28 4 18.53 7 13,356 8 Tamilnad Mercantile Bank 5
30.34 3 20.31 5 16,723 5 ING Vysya Bank 6
39.01 2 28.45 4 14,303 7 South Indian Bank 7
20.34 10 13.22 9 16,017 6 Karur Vysya Bank 8
23.42 6 13.83 8 34,204 2 Jammu & Kashmir Bank 9
3.23 12 10.32 10 18,742 4 Karnataka Bank 10
1.01 13 1.81 12 8,315 11 Catholic Syrian Bank 11
22.72 8 2.16 11 10,696 9 Bank of Rajasthan 12
13.41 11 (329.89) 13 (3,781) 13 Development Credit Bank 13

252.18 1 388.01 1 13,680 10 Barclays Bank 1


30.76 5 298.37 2 25,905 8 DBS Bank 2
14.98 11 11.75 8 190,677 3 Standard Chartered Bank 3
77.10 3 30.06 5 44,285 6 BNP Paribas 4
20.78 9 20.44 7 216,659 2 Citi 5
23.71 8 8.30 11 275,558 1 HSBC 6
15.05 10 78.20 3 44,385 5 JP Morgan Chase Bank 7
80.50 2 50.93 4 15,287 9 Bank of Nova Scotia 8
42.32 4 11.38 9 46,848 4 Deutsche Bank 9
29.59 7 22.78 6 6,054 11 Caylon Bank 10
29.81 6 10.42 10 33,698 7 Bank of America 11
6.59 12 (93.10) 12 1,938 12 ABN Amro Bank 12

THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 45


CATEGORY ៑ PROFITABILITY

Return Yield On Cost Of


Rank On Assets Advances Deposits
2009 Name % Ranks % Ranks % Ranks

Best Nationalised Banks


1 Punjab National Bank 1.39 3 10.68 9 6.15 9
2 Bank of India 1.49 2 9.78 23.5 5.76 2
3 Indian Bank 1.62 1 11.14 4 6.08 7
4 Union Bank of India 1.27 5 10.41 15 6.09 8
5 State Bank of Travancore 1.30 4 10.43 14 6.45 14
6.5 Corporation Bank 1.24 7 10.00 19.5 6.31 12
6.5 Indian Overseas Bank 1.17 8 10.78 7 6.46 15
8 Bank of Baroda 1.09 9.5 8.93 27 5.33 1
9 Dena Bank 1.02 13 9.89 22 5.86 3.5
10 Andhra Bank 1.09 9.5 10.76 8 6.41 13
11 State Bank of Bikaner & Jaipur 0.92 14 10.89 5 6.72 19.5
12 Punjab & Sind Bank 1.26 6 11.57 1 7.03 23
13 State Bank of India 1.04 12 9.68 25 5.93 6
14 Canara Bank 1.06 11 10.44 13 6.72 19.5
15 State Bank of Hyderabad 0.91 15.5 10.57 11.5 6.95 21.5
16 State Bank of Indore 0.88 18.5 10.57 11.5 6.56 17
17 Allahabad Bank 0.90 17 10.13 17.5 6.24 10
18 Syndicate Bank 0.81 21 10.13 17.5 6.26 11
19 State Bank of Mysore 0.91 15.5 10.84 6 6.95 21.5
20 Bank of Maharashtra 0.72 22 10.28 16 5.92 5
21 Oriental Bank of Commerce 0.88 18.5 10.60 10 7.41 25
22 State Bank of Patiala 0.83 20 11.25 3 7.95 27
23 Vijaya Bank 0.59 24.5 11.41 2 7.42 26
24 United Bank of India 0.34 27 9.50 26 5.86 3.5
25 UCO Bank 0.59 24.5 10.00 19.5 6.58 18
26 Central Bank of India 0.45 26 9.78 23.5 6.55 16
27 IDBI Bank 0.62 23 9.97 21 7.14 24

Best New Private Sector Banks


1 Axis Bank 1.44 2 10.57 5 6.06 1
2 HDFC Bank 1.28 3 14.96 2 6.58 2
3 YES Bank 1.60 1 13.63 3 8.34 6
4 ICICI Bank 0.98 5 10.06 6 6.82 3
5 Kotak Mahindra Bank 1.03 4 15.50 1 6.84 4
6 Indusind Bank 0.58 6 12.56 4 7.66 5

Best Old Private Sector Banks


1 City Union Bank 1.50 2 12.87 2 7.60 4
2 Tamilnad Mercantile Bank 1.51 1 12.47 3 7.40 11
3 Karur Vysya Bank 1.49 3 11.50 9 7.34 10
4.5 Jammu & Kashmir Bank 1.09 7.5 11.53 8 6.22 6
4.5 Federal Bank 1.48 4 12.42 4 6.45 7
6 Karnataka Bank 1.25 5 12.28 5 7.53 13
7 South Indian Bank 1.09 7.5 11.40 10 6.84 9
8 Bank of Rajasthan 0.74 9 12.06 6 6.67 1
9 Dhanalakshmi Bank 1.21 6 11.03 13 6.52 8
10 Development Credit Bank (1.25) 13 13.47 1 7.49 3
11 Catholic Syrian Bank 0.57 12 11.76 7 6.54 2
12 ING Vysya Bank 0.70 11 11.13 12 6.18 5
13 Lakshmi Vilas Bank 0.71 10 11.38 11 7.42 12

Best Foreign Banks


1 JP Morgan Chase Bank 4.21 1 8.36 12 3.45 4
2 Citi 2.12 7 12.61 4 3.91 5
3 Bank of America 3.42 3 11.28 7 2.25 2
4 Caylon Bank 4.10 2 10.10 9 3.10 3
5 Standard Chartered Bank 2.87 4 12.30 6 4.98 10
6 BNP Paribas 2.13 6 10.11 8 3.94 6
7 DBS Bank 2.72 5 9.39 10 4.03 7
8 HSBC 1.51 10 13.63 2 4.94 9
9 Deutsche Bank 1.72 9 13.31 3 1.66 1
10 Bank of Nova Scotia 2.04 8 8.52 11 7.50 11
11 Barclays Bank 0.16 11 17.29 1 9.24 12
12 ABN Amro Bank 0.06 12 12.47 5 4.59 8

46 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


Return On Cost / Return On
Networth Income Investments Ranks
% Ranks % Ranks % Ranks Name 2009

21.09 3 74.18 3 7.51 5 Punjab National Bank 1


22.28 2 71.87 2 7.14 13 Bank of India 2
17.45 14 71.66 1 7.55 4 Indian Bank 3
19.75 5 76.95 7 7.37 8 Union Bank of India 4
27.02 1 77.51 8 6.98 18 State Bank of Travancore 5
18.23 10 74.96 4 7.13 14.5 Corporation Bank 6.5
18.54 9 77.54 9 7.23 11 Indian Overseas Bank 6.5
17.35 15 75.88 5 6.87 22 Bank of Baroda 8
19.47 7 81.27 17 7.28 10 Dena Bank 9
17.91 12 79.02 11 6.91 20 Andhra Bank 10
19.71 6 79.65 14 7.29 9 State Bank of Bikaner & Jaipur 11
20.43 4 80.09 16 6.52 25 Punjab & Sind Bank 12
15.74 18 76.58 6 6.69 23 State Bank of India 13
16.98 16 79.60 12 7.62 3 Canara Bank 14
19.19 8 79.89 15 7.43 7 State Bank of Hyderabad 15
17.83 13 79.63 13 7.17 12 State Bank of Indore 16
13.13 22 77.65 10 6.97 19 Allahabad Bank 17
18.22 11 83.27 20 7.11 16 Syndicate Bank 18
14.84 20 82.47 18 7.13 14.5 State Bank of Mysore 19
14.90 19 83.44 21 6.46 26 Bank of Maharashtra 20
12.23 23 83.03 19 8.17 1 Oriental Bank of Commerce 21
16.96 17 85.00 23 7.45 6 State Bank of Patiala 22
8.33 26 84.86 22 7.74 2 Vijaya Bank 23
6.00 27 85.90 24 7.02 17 United Bank of India 24
14.09 21 86.86 25 6.55 24 UCO Bank 25
8.91 25 87.53 26 6.88 21 Central Bank of India 26
9.11 24 89.42 27 5.03 27 IDBI Bank 27

17.77 2 72.88 1 7.63 2 Axis Bank 1


15.32 3 73.61 2 7.41 3 HDFC Bank 2
18.71 1 78.36 4 8.18 1 YES Bank 3
7.53 5 76.94 3 6.90 4 ICICI Bank 4
7.07 6 80.13 5 6.12 6 Kotak Mahindra Bank 5
8.91 4 86.68 6 6.57 5 Indusind Bank 6

18.48 1 75.57 2.5 6.92 3 City Union Bank 1


15.15 5 76.16 5 7.78 1 Tamilnad Mercantile Bank 2
17.47 2 75.57 2.5 6.71 7.5 Karur Vysya Bank 3
15.63 4 76.05 4 6.79 4 Jammu & Kashmir Bank 4.5
11.57 8 67.12 1 6.32 11 Federal Bank 4.5
17.02 3 78.85 6 6.72 6 Karnataka Bank 6
14.94 6 80.62 7 6.74 5 South Indian Bank 7
11.26 9 87.15 11 6.48 9 Bank of Rajasthan 8
13.54 7 81.98 8 5.98 12 Dhanalakshmi Bank 9
(14.72) 13 90.15 13 6.71 7.5 Development Credit Bank 10
9.58 12 87.99 12 6.37 10 Catholic Syrian Bank 11
11.09 10.5 84.76 9 5.60 13 ING Vysya Bank 12
11.09 10.5 85.76 10 7.09 2 Lakshmi Vilas Bank 13

17.67 5 29.87 1 6.63 8 JP Morgan Chase Bank 1


18.87 1 48.13 4 7.57 6 Citi 2
12.26 7 32.70 2 6.10 11 Bank of America 3
17.10 6 45.43 3 5.94 12 Caylon Bank 4
18.55 2 57.04 7 8.77 2 Standard Chartered Bank 5
10.26 9 52.92 5 8.14 4 BNP Paribas 6
18.49 3 59.30 8 6.54 9 DBS Bank 7
11.51 8 53.79 6 8.83 1 HSBC 8
9.03 10 60.08 10 6.99 7 Deutsche Bank 9
17.76 4 59.95 9 7.84 5 Bank of Nova Scotia 10
0.60 12 71.25 12 8.18 3 Barclays Bank 11
0.81 11 67.54 11 6.12 10 ABN Amro Bank 12

THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 47


CATEGORY ៑ EFFICIENCY

Business Per Profit Per Spread /


Rank Employee Employee Total Assets
2009 Name Rs Lakhs Ranks Rs Lakhs Ranks % Ranks

Best Nationalised Banks


1 Bank of India 833.00 7 7.49 3 2.72 5
2 Corporation Bank 1,049.00 3 7.64 2 2.20 18
3 Bank of Baroda 914.00 4 6.05 7 2.52 10
4 Union Bank of India 694.00 16 6.28 4 2.68 6
5 IDBI Bank 2,030.33 1 8.42 1 0.87 27
6 Indian Bank 617.00 22 6.23 5 3.37 1
7 State Bank of Travancore 657.75 18 5.36 9 2.75 4
8 Indian Overseas Bank 689.50 17 5.20 10 2.57 8
9 Punjab National Bank 654.92 20 5.64 8 3.15 2
10 Oriental Bank of Commerce 1,142.43 2 6.18 6 1.96 22
11 Canara Bank 780.17 8 4.97 12 2.36 14
12 State Bank of Hyderabad 839.82 6 4.87 13 2.12 20
13 Punjab & Sind Bank 655.58 19 5.03 11 2.80 3
14 State Bank of India 556.00 26 4.74 14 2.48 11
15 Andhra Bank 728.29 12 4.58 16 2.60 7
16 State Bank of Patiala 910.24 5 4.68 15 1.75 24
17 State Bank of Indore 701.53 15 4.44 17 2.35 15
18 Allahabad Bank 706.00 14 3.75 19 2.39 13
19 Dena Bank 714.00 13 4.28 18 2.44 12
20 Syndicate Bank 750.65 10 3.64 20 2.19 19
21 State Bank of Bikaner & Jaipur 555.39 27 3.55 21 2.52 10
22 State Bank of Mysore 602.00 23 3.48 22 2.28 17
23 Vijaya Bank 756.00 9 2.34 25 1.90 23
24 UCO Bank 732.00 11 2.40 24 1.63 26
25 Bank of Maharashtra 635.61 21 2.76 23 2.34 16
26 Central Bank of India 560.28 25 1.71 26 1.64 25
27 United Bank of India 585.00 24 1.22 27 2.00 21

Best New Private Sector Banks


1 YES Bank 988.36 3 11.38 1 2.56 4
2 ICICI Bank 1,154.00 1 11.00 2 2.15 5
3 Axis Bank 1,060.00 2 10.02 3 2.87 3
4 HDFC Bank 446.00 5 4.18 4 4.69 2
5 Kotak Mahindra Bank 347.00 6 3.00 6 5.33 1
6 Indusind Bank 836.00 4 3.49 5 1.80 6

Best Old Private Sector Banks


1 Federal Bank 750.00 4 6.90 1 3.69 1
2 Jammu & Kashmir Bank 500.00 2 5.00 4.5 2.84 5
3 City Union Bank 565.18 3 4.98 6 2.92 3.5
4 Karur Vysya Bank 638.00 8 5.98 3 2.59 7
5 Tamilnad Mercantile Bank 679.25 10 6.43 2 3.37 2
6 Karnataka Bank 649.00 6 5.00 4.5 2.24 12
7 South Indian Bank 645.14 7 4.31 7 2.79 6
8 Dhanalakshmi Bank 585.88 1 4.10 8 2.51 9
9 ING Vysya Bank 606.39 9 3.03 9 2.26 11
10 Bank of Rajasthan 532.93 5 2.89 10 2.33 10
11 Development Credit Bank 379.00 12 (4.00) 13 2.92 3.5
12 Catholic Syrian Bank 374.00 13 1.39 12 2.55 8
13 Lakshmi Vilas Bank 510.00 11 2.07 11 2.07 13

Best Foreign Banks


1 Bank of America 2,430.57 2 110.85 3 5.07 3
2 JP Morgan Chase Bank 1,825.28 6 253.63 1 3.06 10
3 Caylon Bank 2,105.00 3 130.00 2 3.09 9
4 Citi 1,880.10 5 45.12 7 4.67 5
5 Deutsche Bank 1,434.10 8 26.90 8 5.21 2
6 Bank of Nova Scotia 3,890.97 1 78.39 4 2.48 12
7 BNP Paribas 2,035.00 4 49.00 6 4.18 7
8 DBS Bank 1,662.32 7 72.16 5 2.91 11
9 Barclays Bank 1,110.13 9 1.96 11 6.29 1
10 HSBC 961.81 12 16.06 10 4.30 6
11 Standard Chartered Bank 971.77 11 23.82 9 3.70 8
12 ABN Amro Bank 1,029.41 10 0.62 12 4.90 4

48 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


Non-Interest Profit Per Operating
Income / Total Branch Expenses/Total Ranks
Assets % Ranks Rs Lakhs Ranks Assets % Ranks Name 2009

1.51 1.5 102.50 2 1.37 9 Bank of India 1


1.44 3 86.85 3 1.15 3 Corporation Bank 2
1.36 5 76.38 7 1.57 15.5 Bank of Baroda 3
1.04 19 67.21 11 1.38 10 Union Bank of India 4
0.92 24 168.34 1 0.78 1 IDBI Bank 5
1.34 6 77.30 6 1.68 25 Indian Bank 6
1.23 11 83.27 4 1.62 20.5 State Bank of Travancore 7
1.43 4 68.80 10 1.60 18 Indian Overseas Bank 8
1.31 8.5 71.50 9 1.70 26.5 Punjab National Bank 9
1.05 18 63.67 12 1.23 5 Oriental Bank of Commerce 10
1.16 14 75.64 8 1.40 12 Canara Bank 11
1.11 17 60.25 14 1.22 4 State Bank of Hyderabad 12
1.13 15 50.95 16 1.67 24 Punjab & Sind Bank 13
1.51 1.5 79.68 5 1.62 20.5 State Bank of India 14
1.22 12 45.83 19 1.61 19 Andhra Bank 15
0.98 22 62.68 13 1.14 2 State Bank of Patiala 16
1.12 16 59.47 15 1.39 11 State Bank of Indore 17
1.26 10 34.67 22 1.43 13 Allahabad Bank 18
0.99 21 38.67 21 1.59 17 Dena Bank 19
0.72 27 40.64 20 1.32 8 Syndicate Bank 20
1.32 7 47.08 18 1.70 26.5 State Bank of Bikaner & Jaipur 21
1.31 8.5 50.74 17 1.64 23 State Bank of Mysore 22
1.18 13 23.84 25 1.48 14 Vijaya Bank 23
1.01 20 27.10 23 1.31 7 UCO Bank 24
0.93 23 26.66 24 1.63 22 Bank of Maharashtra 25
0.79 26 16.20 26 1.26 6 Central Bank of India 26
0.84 25 12.78 27 1.57 15.5 United Bank of India 27

2.18 2 257.51 2 1.83 1 YES Bank 1


1.95 4 266.91 1 1.86 2 ICICI Bank 2
2.25 1 230.96 4 1.93 3 Axis Bank 3
2.08 3 160.35 3 3.02 5 HDFC Bank 4
1.26 6 125.50 5 4.17 6 Kotak Mahindra Bank 5
1.79 5 81.51 6 1.98 4 Indusind Bank 6

1.45 8 81.91 2 1.47 2 Federal Bank 1


0.70 13 83.47 1 1.25 1 Jammu & Kashmir Bank 2
1.49 7 58.44 6 1.51 3.5 City Union Bank 3
1.68 3 79.68 3 1.51 3.5 Karur Vysya Bank 4
1.37 10 70.20 4 1.87 9 Tamilnad Mercantile Bank 5
1.67 4 59.00 5 1.52 5 Karnataka Bank 6
0.88 11 37.53 8 1.61 6 South Indian Bank 7
1.64 5 31.75 9 2.00 10 Dhanalakshmi Bank 8
1.91 1 42.52 7 2.42 11 ING Vysya Bank 9
0.75 12 25.70 10 1.83 8 Bank of Rajasthan 10
1.78 2 (108.73) 13 4.07 13 Development Credit Bank 11
1.53 6 10.33 12 2.65 12 Catholic Syrian Bank 12
1.44 9 20.36 11 1.82 7 Lakshmi Vilas Bank 13

4.38 3 6,740.00 2 1.78 5 Bank of America 1


7.71 1 44,387.00 1 1.31 2 JP Morgan Chase Bank 2
4.56 2 2,592.17 7 1.51 4 Caylon Bank 3
3.79 5 5,300.17 3 2.46 8 Citi 4
4.11 4 3,308.08 4 4.63 11 Deutsche Bank 5
2.44 12 3,057.20 5 0.84 1 Bank of Nova Scotia 6
2.79 11 1,888.89 10 1.97 6 BNP Paribas 7
2.79 11 2,590.20 8 1.31 3 DBS Bank 8
3.51 8 602.20 11 4.31 10 Barclays Bank 9
3.17 9 2,747.43 6 2.32 7 HSBC 10
3.62 6 2,118.61 9 2.56 9 Standard Chartered Bank 11
3.57 7 64.57 12 4.67 12 ABN Amro Bank 12

THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 49


CATEGORY ៑ CREDIT QUALITY

Increase In Restructured NNPA /


Rank GNPA Loans Networth
2009 Name Rs Lakhs Ranks Rs Lakhs Ranks % Ranks

Best Nationalised Banks


1.5 Oriental Bank of Commerce (22,198) 2 262,877 18 5.98 11
1.5 Punjab National Bank (55,183) 1 407,468 24 1.80 2
3 State Bank of Travancore (2,643) 8 57,232 3 8.37 13
4 Bank of Baroda (13,846) 4 280,156 20 3.51 5
5 Indian Bank (2,769) 7 263,121 19 1.31 1
6 Corporation Bank (2,520) 9 104,346 7 2.82 4
7 UCO Bank (11,244) 5 245,207 16 20.54 27
8 Punjab & Sind Bank 2,551 12 53,289 2 3.65 6
9 Andhra Bank (429) 10 159,317 11 2.17 3
10 Syndicate Bank (17,411) 3 338,169 23 12.61 21
11 Central Bank of India (3,400) 6 180,284 13 16.58 25
12 State Bank of Mysore 861 11 96,568 5 5.68 10
13 IDBI Bank 5,908 18 262,667 17 10.07 16
14 State Bank of Patiala 5,296 16 212,415 15 8.41 14
15 Bank of Maharashtra 3,214 13 110,246 8 10.80 17
16 State Bank of Indore 3,589 14 43,228 1 12.32 18
17 Allahabad Bank 6,774 19 322,974 22 7.21 12
18 State Bank of Bikaner & Jaipur 5,302 17 66,337 4 12.36 20
19 State Bank of Hyderabad 17,410 20 147,343 10 5.17 9
20 Bank of India 53,996 24 530,125 26 4.66 8
21 Dena Bank 4,817 15 127,796 9 14.44 23
22 Union Bank of India 26,675 23 295,934 21 3.73 7
23 Vijaya Bank 18,732 21 97,433 6 9.28 15
24 Canara Bank 89,535 25 206,598 14 12.35 19
25 United Bank of India 25,900 22 173,649 12 17.06 26
26 State Bank of India 275,126 27 1,303,526 27 16.48 24
27 Indian Overseas Bank 92,646 26 506,049 25 13.97 22

Best New Private Sector Banks


1 Indusind Bank (13,729) 1 4,282.00 2 10.76 6
2 YES Bank 7,436 2 3,211.22 1 2.53 1
3 Axis Bank 40,316 4 99,617.00 5 3.20 2
4 HDFC Bank 108,110 5 12,041.00 4 4.28 3
5 Kotak Mahindra Bank 27,763 3 7,091.00 3 10.16 5
6 ICICI Bank 206,977 6 111,479.00 6 9.13 4

Best Old Private Sector Banks


1 Tamilnad Mercantile Bank (178) 1 11,091.00 11 2.23 3
2 Karur Vysya Bank 1,160 4 29,339.00 6 1.91 2
3 Dhanalakshmi Bank 122 2 3,421.00 13 6.65 5
4 Lakshmi Vilas Bank 607 3 17,133.00 8 14.29 11
5 City Union Bank 1,915 5 31,331.00 4 9.25 7
6 Federal Bank 12,095 12 63,098.00 1 1.57 1
7 ING Vysya Bank 9,315 11 16,030.04 9 12.09 10
8 Karnataka Bank 6,363 8 48,491.00 3 7.41 6
9 Jammu & Kashmir Bank 7,404 10 60,716.00 2 10.97 9
10 Bank of Rajasthan 3,473 6 30,301.00 5 5.45 4
11 South Indian Bank 7,208 9 24,222.73 7 10.30 8
12 Catholic Syrian Bank 4,039 7 13,326.00 10 22.65 13
13 Development Credit Bank 24,213 13 8,897.00 12 21.23 12

Best Foreign Banks


1 Bank of Nova Scotia (0.31) 3 - 2.5 - 2
2 JP Morgan Chase Bank (5,951.82) 1 3,213.41 5 0.36 4
3 Caylon Bank (132.00) 2 - 2.5 - 2
4 Bank of America (0.22) 4 3,250.00 6 - 2
5 DBS Bank 2,922.00 5 - 2.5 1.07 5
6 Standard Chartered Bank 33,437.00 8 43,479.11 11 5.00 9
7 Barclays Bank 99,482.10 11 30,290.22 9 9.69 11
8 BNP Paribas 4,137.00 7 - 2.5 1.93 7
9 Citi 101,410.00 12 52,570.00 12 9.12 10
10 ABN Amro Bank 54,999.00 9 19,092.00 8 15.36 12
11 Deutsche Bank 18,771.02 6 41,500.42 10 1.62 6
12 HSBC 84,291.49 10 12,468.87 7 3.49 8

50 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


GNPA/Gross Increase In GNPA / Increase In NNPA /
Advances Increase In Gross Increase In Net Ranks
% Ranks Advances % Ranks Advances % Ranks Name 2009

1.53 11 (1.62) 1 (0.69) 4 Oriental Bank of Commerce 1.5


1.77 16 (1.57) 2 (1.39) 3 Punjab National Bank 1.5
1.67 14 (0.58) 5 (1.73) 2 State Bank of Travancore 3
1.27 6 (0.37) 6 (0.11) 6 Bank of Baroda 4
0.89 3 (0.24) 9 (0.03) 7 Indian Bank 5
1.14 5 (0.27) 7.5 0.12 10.5 Corporation Bank 6
2.21 22 (0.80) 4 (2.04) 1 UCO Bank 7
0.65 1 0.41 13 0.18 12 Punjab & Sind Bank 8
0.83 2 (0.04) 10 0.26 14 Andhra Bank 9
1.93 18 (1.01) 3 0.05 9 Syndicate Bank 10
2.67 25 (0.27) 7.5 0.02 8 Central Bank of India 11
1.42 10 0.19 11 0.86 17 State Bank of Mysore 12
1.38 8 0.29 12 (0.63) 5 IDBI Bank 13
1.31 7 0.73 15 0.64 16 State Bank of Patiala 14
2.29 23 0.64 14 0.36 15 Bank of Maharashtra 15
1.39 9 1.06 18 1.75 23 State Bank of Indore 16
1.81 17 0.74 16 0.25 13 Allahabad Bank 17
1.63 13 1.11 19 0.92 19 State Bank of Bikaner & Jaipur 18
1.11 4 2.17 23 1.39 20 State Bank of Hyderabad 19
1.71 15 1.80 21 0.12 10.5 Bank of India 20
2.13 21 0.83 17 1.67 21 Dena Bank 21
1.96 20 1.19 20 0.89 18 Union Bank of India 22
1.95 19 4.86 26 2.93 26 Vijaya Bank 23
1.56 12 2.85 24 1.96 24 Canara Bank 24
2.85 26 3.42 25 2.91 25 United Bank of India 25
2.98 27 2.16 22 1.69 22 State Bank of India 26
2.54 24 6.28 27 4.39 27 Indian Overseas Bank 27

1.61 3 (4.65) 1 (3.76) 1 Indusind Bank 1


0.68 1 2.47 3 1.10 4 YES Bank 2
1.08 2 1.81 2 0.36 2 Axis Bank 3
1.98 4 2.99 4 0.93 3 HDFC Bank 4
4.31 5 22.57 5 11.25 5 Kotak Mahindra Bank 5
4.32 6 (33.01) 6 (14.56) 6 ICICI Bank 6

1.81 3 (0.14) 1 0.16 1 Tamilnad Mercantile Bank 1


1.95 4 1.17 5 0.86 4 Karur Vysya Bank 2
1.99 5 0.11 3 0.88 5 Dhanalakshmi Bank 3
2.71 10 0.44 4 0.38 2 Lakshmi Vilas Bank 4
1.80 2 1.72 6 1.50 7 City Union Bank 5
2.57 8 3.38 7 0.71 3 Federal Bank 6
1.25 1 4.45 2 4.89 9 ING Vysya Bank 7
3.66 11 6.23 10 0.99 6 Karnataka Bank 8
2.64 9 3.60 8 4.12 8 Jammu & Kashmir Bank 9
2.04 6 9.77 11 7.53 11 Bank of Rajasthan 10
2.18 7 5.27 9 7.18 10 South Indian Bank 11
4.56 12 10.72 12 9.37 12 Catholic Syrian Bank 12
8.78 13 (38.74) 13 (12.59) 13 Development Credit Bank 13

0.04 2 (0.01) 1 - 2 Bank of Nova Scotia 1


8.14 11 14.77 4 3.78 1 JP Morgan Chase Bank 2
0.05 3 2.58 3 - 7.5 Caylon Bank 3
0.02 1 0.00 2 - 7.5 Bank of America 4
1.26 4 7.81 6 3.86 3 DBS Bank 5
2.78 7 7.72 5 4.05 4 Standard Chartered Bank 6
10.93 12 27.36 7 15.51 5 Barclays Bank 7
2.00 5 (79.68) 11 (51.73) 12 BNP Paribas 8
5.10 9 49.68 8 37.51 6 Citi 9
4.93 8 (16.35) 9 (5.17) 9 ABN Amro Bank a 10
2.71 6 (552.02) 12 (38.00) 11 Deutsche BankG 11
5.36 10 (48.74) 10 (9.18) 10 HSBC 12

THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 51


COMPATABILITY MODE ៑

All figures pertain to March 31, 2009

Sector Name Deposits Borrowings Investments Advances Networth


Foreign ABN Amro Bank 1,596,025 944,196 1,081,069 1,665,974 238,579
Nationalised Allahabad Bank 8,497,179 93,704 2,965,105 5,880,176 585,195
Nationalised Andhra Bank 5,939,003 131,123 1,691,111 4,413,926 364,699
New Private Axis Bank 11,737,411 1,018,548 4,633,035 8,155,677 1,021,481
Foreign Bank of America 416,676 216,094 367,030 335,594 274,808
Nationalised Bank of Baroda 19,239,695 563,609 5,244,588 14,398,590 1,283,554
Nationalised Bank of India 18,970,848 948,698 5,260,718 14,290,937 1,349,493
Nationalised Bank of Maharashtra 5,225,492 19,001 1,838,214 3,429,077 251,719
Foreign Bank of Nova Scotia 297,574 304,460 172,615 480,528 86,094
Old Private Bank of Rajasthan 1,518,714 128 680,915 778,075 104,558
Foreign Barclays Bank 1,248,552 233,083 788,312 1,055,051 500,134
Foreign BNP Paribas 335,314 284,408 356,175 370,988 165,646
Foreign Calyon Bank 81,833 428,786 403,083 176,299 90,977
Nationalised Canara Bank 18,689,252 705,661 5,777,690 13,821,940 1,220,777
Old Private Catholic Syrian Bank 633,283 13 218,397 368,384 38,831
Nationalised Central Bank of India 13,127,186 80,425 4,306,072 8,548,320 641,206
Foreign Citi 5,167,746 1,856,630 2,451,935 3,991,994 1,151,798
Old Private City Union Bank 820,662 15 239,746 564,525 66,092
Nationalised Corporation Bank 7,398,391 207,240 2,493,777 4,851,216 489,651
Foreign DBS Bank 602,286 249,707 781,066 272,285 140,053
Nationalised Dena Bank 4,305,061 5,213 1,247,308 2,887,796 217,050
Foreign Deutsche Bank 1,414,737 360,093 870,486 879,763 476,028
Old Private Development Credit Bank 464,689 34,552 162,173 327,402 59,833
Old Private Dhanalakshmi Bank 496,880 - 156,736 319,606 42,449
Old Private Federal Bank 3,219,819 74,894 1,211,897 2,239,188 432,586
New Private HDFC Bank 14,281,158 268,584 5,881,755 9,888,305 1,465,181
Foreign HSBC 4,997,028 826,845 3,115,382 2,758,869 1,121,432
New Private ICICI Bank 21,834,783 6,732,369 10,305,831 21,831,085 4,988,302
Nationalised IDBI Bank 11,240,101 4,441,704 5,004,760 10,342,834 942,386
Nationalised Indian Bank 7,258,183 53,078 2,280,057 5,146,528 713,592
Nationalised Indian Overseas Bank 10,011,589 654,828 3,121,544 7,488,527 715,097
New Private Indusind Bank 2,211,026 185,646 808,341 1,577,064 166,439
Old Private ING Vysya Bank 2,488,993 215,242 1,049,554 1,675,093 170,288
Old Private Jammu & Kashmir Bank 3,300,411 99,663 1,073,633 2,093,041 262,287
Foreign JP Morgan Chase Bank 358,660 344,655 669,440 70,255 251,164
Old Private Karnataka Bank 2,033,328 397 896,149 1,181,004 156,702
Old Private Karur Vysya Bank 1,510,140 2,304 471,598 1,040,988 135,016
New Private Kotak Mahindra Bank 1,564,493 590,407 911,018 1,662,534 390,552
Old Private Lakshmi Vilas Bank 736,091 3,260 186,306 524,583 45,371
Nationalised Oriental Bank of Commerce 9,836,886 72,196 2,848,895 6,850,037 740,345
Nationalised Punjab & Sind Bank 3,467,566 271,148 1,262,743 2,461,535 214,034
Nationalised Punjab National Bank 20,976,051 437,436 6,338,518 15,470,299 1,465,362
Old Private South Indian Bank 1,809,234 25,701 607,520 1,185,203 130,401
Foreign Standard Chartered Bank 4,180,176 662,259 1,555,156 3,751,602 1,027,681
Nationalised State Bank of Bikaner & Jaipur 3,922,442 78,545 1,099,879 2,985,071 204,647
Nationalised State Bank of Hyderabad 6,244,891 236,447 2,098,166 4,367,917 320,832
Nationalised State Bank of India 74,207,312 5,371,368 27,595,396 54,250,320 5,794,771
Nationalised State Bank of Indore 2,833,198 90,306 805,062 2,161,211 156,448
Nationalised State Bank of Mysore 3,291,577 276,208 1,137,796 2,561,605 227,104
Nationalised State Bank of Patiala 6,000,619 90,378 1,702,921 4,363,412 313,370
Nationalised State Bank of Travancore 4,204,192 80,776 1,323,171 3,271,093 224,990
Nationalised Syndicate Bank 11,588,514 219,048 3,053,723 8,153,227 501,002
Old Private Tamilnad Mercantile Bank 956,604 3,268 320,719 657,169 99,185
Nationalised UCO Bank 10,022,156 206,242 2,938,478 6,880,386 395,704
Nationalised Union Bank of India 13,870,284 388,490 4,299,696 9,653,423 874,036
Nationalised United Bank of India 5,453,590 45,677 1,792,421 3,539,355 307,776
Nationalised Vijaya Bank 5,453,542 61,924 1,738,770 3,546,811 314,930
New Private YES Bank 1,616,943 218,906 711,702 1,240,309 162,422

52 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


Figures in Rs Lakhs
Total Interest Interest Other Operating Net
Assets Income Expence NII Income Expense Profit NNPA Name
3,208,255 311,967 143,715 168,252 122,510 149,736 1,937 36,641 ABN Amro Bank
9,764,801 736,473 520,605 215,868 114,193 139,945 76,861 42,211 Allahabad Bank
6,846,921 537,461 374,772 162,689 76,537 110,426 65,302 7,922 Andhra Bank
14,772,205 1,083,548 714,928 368,620 289,687 285,821 181,534 32,713 Axis Bank
984,535 60,691 15,189 45,502 39,332 17,514 33,700 - Bank of America
22,740,673 1,509,158 996,816 512,342 275,766 357,605 222,723 45,115 Bank of Baroda
22,550,177 1,634,735 1,084,845 549,890 305,186 309,397 300,733 62,821 Bank of India
5,903,035 429,155 303,504 125,651 50,002 96,302 37,515 27,190 Bank of Maharashtra
699,570 54,525 37,103 17,422 17,140 5,857 15,286 - Bank of Nova Scotia
1,722,440 138,361 99,845 38,516 12,361 31,502 11,769 5,703 Bank of Rajasthan
2,068,863 203,654 97,852 105,802 58,921 89,245 3,011 48,462 Barclays Bank
982,799 63,636 27,202 36,434 24,318 19,343 17,000 3,193 BNP Paribas
661,556 34,659 17,370 17,289 25,493 9,959 15,553 - Calyon Bank
21,964,580 1,711,905 1,240,125 471,780 231,121 306,526 207,240 150,725 Canara Bank
704,008 55,662 39,089 16,573 9,959 18,650 3,720 8,794 Catholic Syrian Bank
14,765,522 1,045,519 822,672 222,847 106,997 186,170 57,124 106,300 Central Bank of India
10,526,359 684,023 242,884 441,139 358,229 258,722 217,307 105,070 Citi
925,101 80,440 56,183 24,257 12,369 13,952 12,215 6,111 City Union Bank
8,690,581 606,735 437,637 169,098 110,721 100,157 89,278 13,830 Corporation Bank
1,256,459 80,864 49,392 31,472 30,219 16,483 25,902 1,493 DBS Bank
4,846,051 344,750 238,307 106,443 43,012 76,821 42,264 31,338 Dena Bank
2,495,487 188,145 58,794 129,351 101,967 115,507 43,005 7,717 Deutsche Bank
594,302 64,520 44,795 19,725 12,013 24,202 (8,807) 12,701 Development Credit Bank
564,282 40,841 28,679 12,162 7,936 11,306 5,747 2,824 Dhanalakshmi Bank
3,885,086 331,538 199,992 131,546 51,577 57,145 50,050 6,812 Federal Bank
18,327,077 1,633,227 891,110 742,117 329,061 553,282 224,494 62,762 HDFC Bank
9,462,039 632,692 266,100 366,592 269,943 219,466 129,129 39,103 HSBC
37,930,096 3,109,255 2,272,594 836,661 760,371 704,509 375,814 455,394 ICICI Bank
17,240,232 1,163,162 1,030,572 132,590 138,991 133,790 85,853 94,896 IDBI Bank
8,412,175 683,033 422,182 260,851 103,543 141,514 124,529 9,381 Indian Bank
12,107,340 964,141 677,181 286,960 159,582 194,170 132,579 99,914 Indian Overseas Bank
2,761,468 230,947 185,044 45,903 45,625 54,702 14,835 17,913 Indusind Bank
3,185,699 223,989 159,027 64,962 54,767 77,247 18,878 20,595 ING Vysya Bank
3,769,326 298,812 198,786 100,026 24,506 47,086 40,984 28,782 Jammu & Kashmir Bank
1,053,123 51,592 23,078 28,514 71,821 13,781 44,387 892 JP Morgan Chase Bank NA
2,285,781 191,740 144,383 47,357 35,315 34,652 26,669 11,610 Karnataka Bank
1,706,074 144,610 103,568 41,042 26,520 25,759 23,585 2,582 Karur Vysya Bank
2,871,187 306,514 154,660 151,854 35,785 119,641 27,609 39,684 Kotak Mahindra Bank
831,725 65,762 50,407 15,355 10,699 15,169 5,030 6,485 Lakshmi Vilas Bank
11,258,259 885,648 685,998 199,650 107,133 138,284 90,543 44,243 Oriental Bank of Commerce
4,136,379 324,717 223,530 101,187 40,769 69,184 43,718 7,803 Punjab & Sind Bank
24,691,862 1,932,617 1,229,531 703,086 291,969 420,620 309,088 26,385 Punjab National Bank
2,038,352 168,692 116,404 52,288 16,427 32,846 19,476 13,431 South Indian Bank
9,749,216 564,942 248,962 315,980 309,705 249,973 190,675 51,409 Standard Chartered Bank
4,637,020 381,028 270,706 110,322 57,705 78,743 40,346 25,294 State Bank of Bikaner & Jaipur
7,672,189 570,950 424,271 146,679 76,931 93,314 61,580 16,579 State Bank of Hyderabad
96,443,208 6,378,844 4,291,530 2,087,314 1,269,080 1,564,871 912,123 955,202 State Bank of India
3,307,589 271,308 197,944 73,364 35,041 46,004 27,892 19,274 State Bank of Indore
4,048,579 324,727 240,902 83,825 48,036 66,508 33,692 12,907 State Bank of Mysore
6,966,544 580,406 467,632 112,774 63,164 79,392 53,155 26,363 State Bank of Patiala
4,946,051 412,315 284,059 128,256 57,310 79,938 60,784 18,838 State Bank of Travancore
13,025,567 957,963 697,760 260,203 86,036 171,596 91,281 63,177 Syndicate Bank
1,094,329 97,715 64,343 33,372 13,584 20,427 15,022 2,208 Tamilnad Mercantile Bank
11,166,417 812,137 647,668 164,469 101,989 146,298 55,770 81,267 UCO Bank
16,097,551 1,188,938 807,582 381,356 148,255 221,411 172,655 32,594 Union Bank of India
6,204,071 431,187 315,035 116,152 49,086 97,514 18,472 52,500 United Bank of India
6,238,260 523,782 411,303 112,479 69,881 92,471 26,246 29,229 Vijaya Bank
2,290,079 200,332 149,214 51,118 43,502 41,853 30,386 4,116 YES Bank

THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 53


REGULATOR SPEAK ៑ K C CHAKRABARTY Deputy Governor, RBI

‘Go for financial inclusion’


KC Chakrabarty speaks The problem is that we
with the Financial Express are not at all concerned of
on a host of issues. Excerpts: the 90% population of the
country living without
How do you see the impact their access to credit.
of the slowdown on the Moreover, 50% of the
domestic banking sector? population is does not have
I think we have been able access to any kind of
to manage the slowdown till banking products. I think
now. Thus, growth has picked that we should be more
up now. Despite the severe concerned about these
drought, the country’s issues. We are one of the
economy is growing by 7%. poorest countries in the
world. The problem with
Do you feel the Indian the poor in the country is
financial system came out that they can get money at a
unscathed? 50% interest rate from
I won't say is it was the moneylenders or even a
robustness that prevented 30% interest rate when it
the greater damage to the comes to microfinance
economic system. Rather, I institutions. Still, they are
would say different players unable to get credit from
and regulators have financial institutions at
managed it well. But then, even a 15% rate of interest.
any financial system is That is the tragedy.
robust, if the availability
of credit is ensured for a What is RBI’s focus?
large segment of society. Well, financial inclusion,
Even those who are financial stability and
very poor manage the above all, financial sector
difficult situation very well. At the Reserve Bank, we are very reforms. You have to improve
clear. I see the regulators will be everywhere. You have to bring new
What is the broad lesson for RBI cautious at the global level as well. things. Our current focus is confined
from the global financial crisis? Because of that, reforms should not to three areas, which include better
The broad lesson is to improve slow down. At RBI, we are committed protection to customers, better
banking penetration. Secondly, the to reforms. And hence we are working treatment to customers and finally,
monetary policy must be concerned to ensure the penetration of banking better risk management. There may
with asset bubbles. Third, whenever facilities, which means taking be more regulations from RBI on the
things are going good, you should be banking services to the doors of the subject in the future.
concerned about the credit growth masses.
and the money supply growth. Fourth, How are you planning to do that?
whenever any particular sector shows Will you allow sophisticated We will do it by way of promoting
the signs of more volatility and more derivative products in the market? financial literacy. Now, we have made
risks, counter-cyclical measures We should not be concerned about some progress on this topic. Still, I
should be taken. There should always derivative products. Rather, we should think that financial literacy can't be
be vigilance in the regulatory system. be worried about providing basic done by the Reserve Bank alone. You
banking products to everybody. Let need to involve other regulators too.
Can it lead to a situation over the market take care of other things. The recently formed Financial
regulation impeding the freedom We are not into credit derivative Sector Stability & Development
of the markets? products like CDS. When we think Council is also discussing the
Ideally it should not happen now. that the market is mature enough for financial inclusion issue. If we have
But, whenever any crisis or any these kinds of derivative products, to take products and services to the
accident takes place, people obviously then only will we introduce these poor, you need have the help of
get cautious. That is a common thing. products. technology as a front-end device. ◆

54 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010


GUEST COLUMN ៑ K V KAMATH

Weathering the storm and


emerging a global force
I
NDIA has been among shock from the global
the first economies to markets. As part of its
recover from the confidence building
impact of the global measures, the Reserve
financial and economic Bank of India significant-
crisis. While this high- ly reduced interest rates
lights the positive in the economy and
fundamentals driving provided adequate
long-term growth in the liquidity support to all
country, it also brings into sectors.
focus the resilience of our Simultaneously, the
financial sector in the government announced
face of a crisis that had its key fiscal measures
genesis in the financial aimed at both, supporting
systems of the West. sectors facing difficulties
It is important to have as well as maintaining an
a perspective on the overall demand impetus
challenges that arose in the economy. These
from the global financial measures had a
crisis for our economy stabilising impact on the
and financial sector. The economy and the banking
impact was mainly sector.
through the trade and The development of
capital flow channels, the banking sector will
with a resultant impact mirror the country’s
on domestic liquidity and economic growth
business confidence. momentum. With the
These challenges and the economy expected to
rapidity of their grow at sustained high
emergence created a rates over the next
mood of shock and decade, the opportunities
erosion of confidence among soundness of the Indian banking for the banking system will be
businesses, consumers, lenders and system. The banking system entered significant. Favourable demographics
investors. The corporate sector was the global financial crisis in much and increasing incomes will continue
faced with a new cost-price-demand better shape than the previous to drive growth in retail banking,
equation, to which it had to adjust economic down cycle of the 1990s. The while increased investments,
quickly. In this environment, the Indian banking system was particularly in the infrastructure
banking system had to deal with characterised by healthy capital sector, will create opportunities in
challenges on the liquidity front and ratios, conservative leverage, stable corporate banking.
the risk of increased corporate funding based largely on deposits and As such, the domestic momentum
defaults given the sudden decline in a healthy asset quality profile. It is also itself has the potential to elevate the
corporate profitability. Lower important to remember that the global Indian banking system to global
business confidence and increased financial crisis did not have any prominence. Continued
risk perception adversely impacted adverse impact on our domestic liberalisation, focus on enhancing
banking system credit growth, both in fundamentals and its impact therefore financial deepening and increasing
the retail and corporate segments. was largely transitory. systemic efficiency would be the key
The fact that we successfully As such, the regulatory response to to realising this potential.
navigated these challenges is no small these developments was to ensure
achievement. The basis of this stability of the overall system while The author is chairman,
achievement was the inherent dealing with the large and sudden ICICI Bank

56 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010