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

2 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010

 EDITORIAL
FE-EY
BEST BANKS
SURVEY 2009-10
Chairman of the Board
Viveck Goenka
Group Editor-in-Chief
Shekhar Gupta
Managing Editor
M K Venu
Project Co-ordinator
Akash Joshi
Editorial Co-ordinators
Sitanshu Swain, Ayesha Dominica Singh,
Sushila Ravindranath
Editorial
Mahalakshmi Hariharan, Kumud Das,
Saikat Das, Sajan Kumar
Desk
Ayesha Dominica Singh
Research Team
Sujith Pillai, Sandeep Nalge, Tara Boi
Photographers
A Srinivas, Mahindra Parikh, Vasant Prabhu,
Prashant Nadkar, Ganesh Shirsekar,
Dilip Kagda, Pradip Das, Ritika Jain
Design Team
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M P Singh, Rohnit Phore
Marketing Co-ordinators
The Express Group
Space Marketing Team
Production
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4 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
Indian banks
need to scale up
T
HE global financial crisis and its aftermath forced banks to introspect about
the kind of financial sector architecture India should have in the years ahead.
Indian banks escaped the contagion because they were highly regulated at
home and not too integrated with the global financial system in terms of sharing the
risks inherent in the trillions of dollars of worthless financial products.
But this does not mean that a rapidly rising Indian economy and its financial
sector can avoid integrating with the global financial system. India cannot become a
global player unless its banking system reinvents itself to deal with the thousands
of businesses which are doubling in size every 4 to 5 years. The one key learning
after the financial crises was that Indian banks needed to have size. When
international credit delivery froze for several months after the Wall Street crises,
foreign lenders stopped lending and Indian banks were called upon to rescue
companies. Unfortunately, Indian banks found they did not have big enough balance
sheets to meet the exigencies .This resulted in a healthy debate over how Indian
banks can actually build scale to not only fuel the global ambitions of its domestic
businesses, but also to take banking to the next 400 million in rural India.
The debate over creating a few Indian banks which rank among the top ten in
Asia is not a new one. But it has assumed fresh urgency in the context of the balance
of economic power rapidly shifting towards Asia. God forbid, if there is another
financial meltdown and a double dip recession in the West, India will need banks of
the size and scale which will keep feeding the growing domestic economy. The real
macro-economic challenge is of garnering another 10% of GDP as savings over the
next decade. Banks have a big role in realising this objective. Initially the
government thought it could persuade public sector banks to merge and thus create
scale. There is a counterview that such mergers cannot be forced in a top down
manner, and must be effected in a bottom-up organic way based on real synergies.
The jury is still out on this one.
Pranab Mukherjee intends to create more competition by issuing new banking
licenses. This is good news ; more competition will strengthen the domestic
financial sector and will create conditions for consolidation.
This year FE best Banks has introduced a new test –liquidity which measures
how much a bank is in a position to meet its liabilities with current assets. In this
context, some banks which had a much more diversified base of small depositors
had lower bulk borrowings to meet growth on the lending side. Many banks are now
returning to the virtue of lowering the borrowing to deposit ratio. We hope the
analysin the FE Best Banks Awards would help in creating new standards for India’s
banks to move to the next level of globalization as well as localization i.e taking
banking to the next few hundred million unbanked in rural India. We are thankful to
our knowledge partner Ernst & Young for evolving newer standards to assess the
strength, profitability and efficiency of banks.
M K VENU
BRIDGES

H I G H WA Y S

TUNNELS

TOLL -ROADS

AIRPORTS

R E A LT Y

Conventional way
IBR/Kautilya 133
 THEME STORY
Gamechangers in
the Indian banking sector
Viren H Mehta
T
HE Indian banking sector has
emerged as one of the strongest
drivers of India’s economic
growth. Positive changes witnessed in
the last two decades have impacted
every aspect of banking, ranging from
regulatory standards to customer
management. Indian banks adapting
to the changing landscape along with
the vision of the regulator and the
Government in shaping the future
growth of banking were two of the
noteworthy features of this
transition.
While banks evolved their
strategies in response to increasing
competition and changing customer
requirements, the regulator guided its
growth with policies of gradual
liberalisation and benchmarking the
6 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
domestic system with the best in the
world, even if it appeared
conservative at times.
As the world recovers from the
global financial crisis, Indian banking
has remained resilient while con-
tinuing to provide growth
opportunities. With the increased
participation of new private sector
and foreign banks, the Indian banking
industry has become fiercely com-
petitive. Competition will be further
intensified with the proposed entry of
new private players and non banking
financial companies (NBFCs).
Financial inclusion
Given the sheer size of the
unbanked population in India, the
goal of financial inclusion not only
carries tremendous social appeal, but
also makes definite economic sense.
Illustration:
ROHNIT PHORE
International experience with
financial inclusion has sufficiently
proved that achieving growth,
aggressively tackling competition and
social inclusion can go hand in hand.
Indian banks will tremendously
benefit themselves and the society by
developing focused strategies to
augment the outreach of their
services to attract the mass market
and consider it as a potential business
opportunity than as a regulatory
mandate.
As urban markets get adequately
penetrated the competition to sustain
and grow the market share, maintain
margins will force banks to look for
newer markets. With rural
development gaining a prominent
position on government agenda,
income, awareness and aspirations of
the rural population are bound to
 THEME STORY
increase. Banks quick to establish
presence in the vast hinterland and
customise financial products for the
poor will capture growth
opportunities. Deployment of a
combination of multiple delivery
channels capable of offering timely
convenient and cost-effective services
will stay ahead of the curve.
A feasible option to explore would
be to effectively partner with
microfinance institutions, local
communities, business
correspondents even NGOs to deliver
financial services and benefit from
their reach. Use of information
technology is another valuable tool.
Consolidation
To survive in an increasingly
competitive environment, market
dynamics point towards attaining a
sizeable scale and capital base,
possible only through consolidation.
Backed by political will and
favourable economic variables, the
long impending objective to develop a
few Indian banks of global scale is no
longer based
on surreal expectations.
To be relevant on a regional or
global basis, it will be essential for
Indian banks to explore inorganic
expansion within and outside India.
Mobile banking
With the onset of mobile banking,
the industry finds itself at the
threshold of the next major
technological leap. M-banking offers
significant cost-saving advantages by
way of reduced transaction costs and
is even expected to replace many
delivery and payment systems. The
large and ever-growing mobile base
provides banks with the opportunity
to offer services in areas where they
have a limited branch presence. M-
banking can be an effective tool for
capturing the unbanked rural market
as almost 50% of new mobile
subscriptions come from rural areas.
M-banking can be made more
incisive if challenges such as
awareness, coverage in rural and
semi-urban areas, widening the scope
of banking facilities, transparency
and security issues are addressed
efficiently. The pervasive
8 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
effectiveness of mobile technology
will drive regulations that allow
greater use of this technology for
banking transactions whilst
effectively controlling it abuse.
Risk management
The Indian banking industry is
expected to witness unprecedented
growth in the volume of business in
the coming decade and this brings
with it huge challenges for risk
management. The financial turmoil
also underlined the indispensability
of the process of internal controls,
corporate governance and risk
management.
A bank with sound risk
management practices in place will be
able to precisely ascertain the credit
profile of its borrowers, resulting in
enhanced ability to predict default,
Quality risk
management systems
could very well act to the
advantage of a bank
in a country like India,
which has a shallow
documentation
of credit history
reduce bad debts and raise
collections. This will in turn enable
lower capital requirements, improved
performance and higher risk adjusted
rate of return.
The proposed implementation of
advanced approaches of Basel II will
ensure better quantification and
accounting of various risks thereby
ensuring more holistic risk
management system in the Indian
banking industry.
Quality risk management systems
could very well act to the advantage of
a bank in a country like India, which
has a shallow documentation of credit
history, especially in retail banking,
and a nascent culture of credit
information sharing.
Account-centric approach
With rise is competition, banks are
grappling with increased customer
migration as switching costs are
nearly negligible and product
differentiation is replicated with ease.
This has led to customer
understanding and superior service
gaining tremendous prominence.
To profitably stay in the race,
successful banks are adding a new
dimension to customer engagement.
They are now adopting a complete
account-centric approach. This
essentially involves acquiring a
customer at an early stage and then
building a long-term relationship,
offering different products and
services not only suitable for different
life stages of the client.
Human capital development
The skill level, attitude and
knowledge of the employees have a
substantial bearing in determining
the competitiveness of a bank.
Needless to say, banks making
investments in their human talent
will reap the benefits.
Cost optimisation
Multiple channels, varied
customer profile and vast geographic
spread have contributed to the
increased distribution cost for banks.
Banks should target the optimal
mix of channels to reach the right
customers at minimal cost. Banks are
increasingly leveraging technology to
achieve economies of scale in
operations, besides aiming for
administrative efficiency.
Another focus area is outsourcing
of non-core functions and banks that
manage these challenges will be able
to differentiate themselves in the
market.
Conclusion
The banking sector in India offers
huge opportunities. Upward direction
of interest rates, increasingly
demanding customers, focus on
financial inclusion, technological
advancements, competition for
human talent and efficient utilisation
of a bank’s resources are some
inherent challenges, which need to be
addressed to unleash the competitive
advantage offered by the Indian
banking sector and energise growth.
The author is director, Ernst & Young
India Pvt Ltd.
 METHODOLOGY ៑ RATIONALE
Looking to strengthen &
consolidate, maintain credit
quality & profitability
Husain Diwan and Viren H Mehta
T
HIS year’s edition of the FE-EY
India’s Best Banks Survey is set
against the backdrop of
recovery in the global economy after
the widespread financial crisis. The
Indian economy continued to grow at
a decent rate as compared to the rest of
the world. However, the current crisis
has exposed certain limitations and
weaknesses. Liquidity problems and
credit defaults have made banks more
risk-averse. A gradual shift from
"Managing Crisis" to "Managing
10 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
Recovery" is now the focus of
regulatory strategy.
Despite the financial turbulence,
the economic growth of India
remained reasonably unscathed.
As ever, each category of banks -
public, old private, new private and
foreign banks face its own unique
challenges ranging from credit
defaults and restructuring of loans,
liquidity, reputation and dwindling
net interest margins to technology
and manpower.
Considering these aspects, Ernst
& Young has ranked the players with-
Illustration:
ROHNIT PHORE
in the Indian banking sector - 27 pub-
lic sector banks, 13 old private sector
banks, 6 new private sector banks
and 12 foreign banks based on their
natural genres.
Five major criteria were selected
to compare performance of the
Indian banks. These criteria are -
Strength and Soundness, Credit
Quality, Growth, Profitability and
Efficiency. Considering the current
scenario of Indian banking, compli-
mented with moderate economic
growth, we believe every Indian
bank would be evaluating itself and
 METHODOLOGY ៑ RATIONALE
making peer comparison based on
the major criteria selected as above.
Trust of the depositors on a bank
and trust of the bank on its borrow-
ers continue to form the foundation
of the banking business. The meas-
ure of this trust is the Strength and
Soundness of a bank. The ability of
a bank to absorb shocks is dependent
on its strength and soundness.
Accordingly, Strength and Soundness
has been selected the first criterion
to measure Indian banks with high-
est weight of 0.25.
As a result of greater emphasis on
higher exposure to sensitive sectors,
consumption loans, and restructur-
ing of debt, Credit Quality is once
again a key factor on which Indian
bank’s performance would revolve
and is therefore selected as the sec-
ond criterion. With the global melt-
down and defaults in credit repay-
ment due to liquidity and confidence
concerns, admittedly, Credit Quality
has re-emerged as a concern. Hence,
the weight for Credit Quality has
been assigned a weight of 0.20.
The slow economic growth experi-
enced in FY09 was mirrored in the
growth of Indian banks. Intense
competitive forces played a very
important role in determining
12 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
Viren H Mehta (left) and
Husain Diwan of Ernst & Young
banks’ strategies for market domi-
nance. Therefore, banking assets and
earnings grew along with the entire
economy, but the leaders of the pack
were required to stand out.
Accordingly, Growth is the third
major criterion selected with an
assigned weight of 0.20.
With India experiencing a recov-
ery in many areas of the economy in
the year gone by, it is only expected
that there is a consequential impact
on the financiers of the economy. In
these times, it is imperative that the
banks should have a minimum
threshold in terms of size and ade-
quacy of capital to reflect soundness
and maintain an improved credit
quality. However, all these must be
achieved whilst maintaining prof-
itability. Therefore, Profitability is
selected as the fourth major criterion
and assigned a weight of 0.20 match-
ing the imperative for banks to
achieve growth combined with quali-
ty assets.
In the environment of upward
pressure on interest rates, demand-
ing customers, and greater need for
financial inclusion, it is absolutely
essential that banks operate and
‘sweat’ their resources efficiently.
Hence, it is important to evaluate a
bank’s performance based on effi-
ciency with which it has used 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
banks based on their Strength and
Soundness. Banks are often com-
pared using Total Assets as a bench-
mark. In the current economic con-
text where efficiency in use of capi-
tal and effectiveness of deployment
of deposits are more respected, a
weight of 0.20 is assigned to Total
Assets. Networth comprises both
total capital and accumulated profits
and accordingly, is assigned the
weight of 0.20, followed by Liquidity
and extent of reliance on shorter
duration funds as compared to
deposits (Borrowing/Deposits Ratio)
with both being assigned weights of
0.20 and 0.15 respectively. Capital
Adequacy Ratio and Core Capital are
powerful indicators of a bank’s
inherent strengths. However, very
high Capital Adequacy Ratio and
Core Capital could also mean ineffi-
cient use of capital. Therefore, a
lower weight of 0.15 is assigned to
Capital Adequacy Ratio and 0.10 to
Core Capital.
Increase in Gross NPA,
Restructured Loans, Net
NPA/Networth, Gross NPA/Gross
Advances, Increase in Gross
NPA/Increase in Gross Advances
and Increase in Net NPA/Increase in
Net Advances are the sub-criteria
 METHODOLOGY ៑ RATIONALE
selected to compare banks on Credit
Quality. The rate of increase in gross
non-performing advances compared
with the rate of increase in gross
advances, and the rate of increase in
net non-performing advances com-
pared with the rate of increase in net
advances are considered to be of
relatively higher importance to a
bank’s management. Accordingly,
these sub-criteria are assigned the
highest weights of 0.25 to assess
Credit Quality. The increase of Gross
NPA has been assigned the next level
weight of 0.20. One of the policy
measures to assist businesses to tide
over the economic slowdown was to
encourage banks to restructure loans
to customers without affecting their
classification. Through this special
regulatory accounting treatment,
although these continue to be classi-
fied as performing, they evidence
inherent credit weakness.
Therefore, the quantum of restruc-
tured loans, introduced this year,
and networth rendered non-perform-
ing are the next important aspects of
Credit Quality and are assigned the
weights of 0.10. Additionally, the por-
tion of a bank’s gross advances com-
prising gross non-performing
advances is assigned a lower weight
of 0.10.
Growth in Total Assets, Advances,
Deposits, Net Profits, Net Interest
Income (‘NII’) and Increase in Net
Worth are selected as parameters for
assessing Growth. The need for
increasing market share in deposits
to fuel its funding requirements of
banks on an effective basis have
resulted in assigning higher weight
to growth in Deposits of 0.30, fol-
lowed by equal weights of 0.20 for
growth in Advances and Net Profits.
Growth in Total Assets would not
necessarily result from growth in
banking operations as banks could
use the safe-habour of government
investment, instead of lending.
Hence it is assigned a weight of
0.10. Further, with the current
stress on net interest margins due to
current pressure on interest rates,
focus on improving these has also
sharpened. With implementation
of standardised Basel II norms,
banks are also focussed on mainte-
14 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
nance of their networth. Hence, this
sub-criteria is assigned a weight of
0.10 that are a notch lower in
comparison with other aforesaid
sub-criteria.
Return on Assets, Yield on
Advances, Return on Networth, Cost
of Deposits, Cost-Income Ratio and
Return on Investments are the sub-
criteria selected to measure banks
based on Profitability. The stakehold-
ers would closely focus on Return on
Assets and Return on Shareholders’
Funds i.e., Networth. Thus, these
sub-criteria are also assigned higher
weights of 0.20. Currently, different
constituents of banks would focus at
Cost of Deposits and managing costs.
Success will be
predicated on how banks
shape their strategies to
support the Indian
economy emerging from
a slowdown
Accordingly, both these sub-criterion
are equally important and are also
assigned equal weights of 0.20.
Whereas Yield on Advances and
Return on Investments are impor-
tant, in the current interest rate sce-
nario, these sub-criteria are assigned
weights of 0.10, a notch lower in com-
parison.
Banks that are able to adapt quick-
ly to the evolving economic environ-
ment, are the ones that create most
value. The increased competition for
human and financial capital,
increased expectation on perform-
ance, improved technology platforms
demand that the human, technologi-
cal and financial resources be more
efficiently deployed and leveraged.
Therefore, Spread/Total Assets,
Operating Expenses/Total Assets,
Business Per Employee, Profit Per
Employee, Non-Interest
Income/Total Assets, Profit Per
Branch are selected as sub-criteria to
measure Efficiency amongst banks
in India.
Spread/Total Assets and
Operating Expenses/Total Assets
measure Efficiency in use of
resources and these are assigned
weights of 0.25 and 0.15 respectively.
Business Per Employee and Profit
Per Employee measure utilisation of
human capital and are assigned
weights of 0.15 and 0.20 respectively.
With the objective of garnering
deposits and penetrating under
banked areas and population, Indian
banks are increasing their branch
network and accordingly profit per
branch has been considered as one
of the sub-criteria to measure
efficiency. NII reflects the abili-
ty of the bank to charge its
customers for its services
and augment the bottom line
of the bank without requiring alloca-
tion of capital and hence reflects use
of set organisation skills and net-
work. Therefore, the last two sub-cri-
teria are assigned weights of 0.15
and 0.10 respectively.
The results of the ranking are
based on financial performance of
banks during FY 2009. While some
may not concur with the aforesaid
dissertations, we believe that in the
current Indian environment, the
above ranking methodology is most
appropriate - so much so that when
stress tests were performed, the
resultant top ranking banks were
significantly the same.
Going forward, the success for the
banking industry as well as individ-
ual institutions will be predicated on
how banks will shape their strategies
to support the Indian economy
emerging from a slowdown, encom-
pass the vastly under and un-banked
regions and population and provide
the much needed financing for
Indian structure. ◆
 METHODOLOGY ៑ RATIONALE
៑ FE-EY India’s Best Banks Survey
Approach
Framework
1. Banks were categorised into public sector banks
(‘PSB’), old private sector banks (‘OPSB’), new private
sector banks (‘NPSB’) and foreign banks (‘FB’). With the
objective of making the comparison more meaningful,
banks with total assets less than Rs 5,000 crore as on
March 31, 2009 and banks that ceased to exist in India
during 2008-2009; were not considered for the rankings.
2. Financial information for the year ending March
31, 2009 relating to each of the banks falling into the
aforesaid categories was collected from the data avail-
able from the Reserve Bank of India. To ensure consis-
tency, only the published information was used.
3. Five different major criteria were identified
against which the Indian banks were to be ranked.
These criteria are: (i) Efficiency, (ii) Profitability, (iii)
Growth, (iv) Credit Quality, and (v) Strength and
Soundness. Considering the current banking, industri-
al and over-all economic scenario, pertinent weights
were assigned to each of the major criterion. The
rationale for selecting each of the criteria and assign-
ment of their respective weights is discussed in the
above-mentioned article.
4. Six sub-criterion were selected within each of the
aforesaid major criteria, which would cover the vari-
ous aspects within the aforesaid criteria. Considering
the current banking, industrial and over-all economic
scenario, pertinent weights were assigned to each of
the sub-criterion. These sub-criteria and their respec-
tive weights (in brackets) are:
(i) Efficiency (0.15)
(a) Non-Interest Income/Total Assets (0.10)
(b) Business per Employee (0.15)
(c) Profit per Branch (0.15)
(d) Operating Expenses/Total Assets (0.15)
(e) Profit per Employee (0.20)
(f) Spread/Total Assets (0.25)
(ii) Profitability (0.20)
(a) Yield on Advances (0.10)
(b) Return on Investments (0.10)
(c) Return on Assets (0.20)
(d) Cost of Deposits (0.20)
(e) Return on Networth (0.20)
(f) Cost/Income Ratio (0.20)
(iii) Growth (0.20)
(a) Total Assets Growth (0.10)
(b) Net Interest Income (‘NII’) Growth (0.10)
(c) Increase in Networth (0.10)
(d) Advances Growth (0.20)
16 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
(e) Net Profits Growth (0.20)
(f) Deposits Growth (0.30)
(iv) Credit Quality (0.20)
(a) Restructured Loans (0.10) — Introduced this year
(b) NNPA/Networth (0.10)
(c) GNPA/Gross Advances (0.10)
(d) Increase in Gross Non-Performing
Assets (‘GNPA’) (0.20)
(e) Increase in GNPA/Increase in
Gross Advances (0.25)
(f) Increase in NNPA/Increase in Net
Advances (0.25)
(v) Strength and Soundness (0.25)
(a) Core Capital (0.10)
(b) Capital Adequacy (0.15)
(c) Borrowings/Deposit Ratio (0.15)
(d) Liquidity (0.20)
(e) Total Assets (0.20)
(f) Networth (0.20)
The rationale for selecting each of the sub-criteria
and assignment of their respective weights is dis-
cussed in above-mentioned article.
5. Banks were ranked, category-wise, within each of
the aforesaid sub-criteria. These sub-criteria ranks
were multiplied with sub-criteria weights and the
weighted sub-criteria ranks were carried over to each
of the major criteria. The sub-criteria ranks were then
multiplied by the major-criteria weights. The resultant
weighted major-criteria ranks were aggregated to
determine the best bank in each of the four categories
and each of the five criteria.
6. As discussed in the abovementioned article, since
all the banks, irrespective of their ownership (catego-
ry), compete in the same market place, vie for the same
customers and are faced with the same situation, it
was deemed appropriate to determine a best bank
within each of the major-criteria selected by us. Here
the same aforesaid process was followed, but the banks
were not spilt into their respective categories.
7. While ranking banks of the aforesaid 30 parame-
ters, it is found that banks with total assets of less
than Rs 5,000 crore compare favourably against larger
banks. These are primarily foreign banks that operate
in India in a very limited manner. Including these
banks often distort the results and thereby, render the
ranking less meaningful. Accordingly, banks with total
assets less than Rs 5,000 crore have been excluded.
8. Also excluded are banks that merged their opera-
tions with other banks during 2008-09, e.g., pursuant to
the merger of State Bank of Saurashtra with State Bank
of India, the parameters of the merged entity are taken
for 2009, whereas the parameters of erstwhile State Bank
of Saurashtra have been disregarded for 2009.
Team Ernst &Young: Viren H Mehta, Husain Diwan,
Tanvi Vedak, Surendrakumar Mundra, Karan Shah
and Vikas Kabra
 PUNJAB NATIONAL BANK ៑ NATIONALISED BANK ៑ RANK: 1

18 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010

K R KAMATH, MD&CEO, Punjab National Bank
‘We aspires to become
a global bank’
Punjab National Bank (PNB) is fast
emerging as a global financial
powerhouse. KR Kamath, CMD, PNB
shares his views with Sitanshu
Swain and Kumud Das of the
Financial Express about the bank’s
multi-pronged strategies to achieve
rapid growth. Excerpts:
The bank has really turned
around and climbed upwards in
the last two years in its
performance. How has the bank
achieved this feat?
Government ownership and good
governance practices of Indian PSBs
have proved to be pillars of strength
in times of economic downturn.
Every crisis brings with it
opportunities. Punjab National Bank
was in the forefront to identify such
opportunities arising out of the
global slowdown and converted it into
business while supporting customers
to handle the situation with
confidence.
In addition, the bank’s
countrywide presence even deep into
remote/rural areas gives it an edge
over its peers in the form of
availability of low cost resources. The
excellent IT capabilities set up by the
bank facilitate handling of larger
volumes in an efficient way. The
sound fundamentals of the bank also
lent support to the upward movement
of the bank.
Our conservative approach and
robust risk management practices
helped us to keep our profitability
intact. The bank’s corporate
governance framework helped in
meeting aspirations of various
stakeholders in a transparent
manner. All these facilitated the
bank’s superior performance.
Do you think the fact that
private sector banks and foreign
banks were lying low during the
economic slowdown gave an
advantage to public sector banks
like you to move upward in the
business?
As I have already said, the crisis
brought opportunities as well and
PNB cashed in on those opportunities
to convert them into business,
whether in the form of additional
loans or even restructuring of some
existing portfolios. The bank was at
the centre stage of operations when
others moved away during times of
crisis and downturn. While we did
grow, it had nothing to do with the
business of the private sector and
foreign banks, since our areas of
operation are vastly different.
The fact that the bank is a
second largest PSB gives you extra
responsibility in the consolidation
space. What are your plans on this,
as the government is keen to take
the consolidation agenda forward?
There is no denying the fact that
the banks in India need to consolidate
to become bigger and stronger for a
variety of reasons.
The banks in India are very small
as compared to the global banks and
hence to become a global player,
consolidation is the only way ahead. It
would be worth mentioning that the
list of 1000 World banks compiled by
“The Banker, London” in 2009, carries
the names of only 32 Indian banks.
The biggest Indian bank (SBI) is
placed at the 76th position in terms of
assets, with $256 billion, wherein the
first rank has been bagged by Royal
Bank of Scotland with an asset size of
$3,500 billion. Thus, to be able to face
competition from foreign players,
banks would need to consolidate,
though such moves need not be
predatory alone. Rather, they could be
collaborative as well.
THE FINANCIAL EXPRESS
The country is going to witness a
dramatic increase in infrastructure
spending as per the planned
expenditure outlined in the 11th Five
Year Plan. This would require banks
to enhance their capital and
strengthen their balance sheets to be
able to finance such projects and take
a larger share.
Globalisation of Indian corporates
has also put pressure on Indian banks
to globalise and have a greater
presence abroad. To offer world class
service to world class corporates and
satisfy their demands for
sophisticated products, the banks
would need to strengthen themselves
through consolidation.
A large chunk of our population
still continues to be out of the ambit
of financial services and financial
inclusion is one of the most
important steps towards inclusive
growth.
Having said that, let me also add
that we are not in a hurry. For the last
couple of years there is a healthy
debate going on, which is ironing out
the differences between various
stakeholders on this issue. However,
whenever the opportune time comes,
we will not hesitate to make the right
moves.
What is your future vision for
the bank?
The bank has envisioned
ambitious growth targets for the
period ending 2013. The bank plans to
grow its business to Rs 10 lakh crore
by 2013 and increase its customer base
to 15 crore.
PNB aspires to become a global
bank and plans to implement the best
global practices to effectively compete
in the market by providing a complete
range of financial services. The bank
would also make efforts to sustain its
leadership position amongst
nationalised banks in all domestic
operations, in financial inclusion, in
adopting best risk management
practices, in implementing global
best practice in corporate governance
and corporate social responsibility
and in HR policies. The bank also
aspires to become a universal bank,
providing a complete range of
financial services under one roof. ◆
៉ 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
speaks to FE’s Sitanshu Swain &
Kumud Das about the turn around
strategies of the bank. Excerpts:
How did the bank unlock its
potential?
The bank has great potential. I
should put it on record that it is the
good work done by my predecessors
that has brought the bank to this level.
Two-three very significant changes
have been made at the bank over a
period of three to four years, which
have also contributed to a make-over
of the bank.
One is on the technology side.
Second is the brand building exercise.
The change in the entire brand has
helped us to develop strong visibility
and unlock the value of the bank.
Having a brand ambassador was itself
a concept, which was something new
to public sector banks.
What are the new initiatives you
have taken after you joined?
Among many things, we have taken
two important initiatives. Last year,
we took up a project of business
process reengineering (BPR). Having
put the technology in place, it is the
next step to ensure that you harness
the technology pattern for business
growth through improving customer
care services, which need to be
simplified. The project is known as
Project Navnirman.
The second project is known as
Baroda Next, which is being headed
by an officer in the rank of a general
manager. Basically, it is a BPR project.
This initiative was taken up by us
during the last year itself. Therefore
we started searching for a consultant
who could help us in realising this
goal.
We appointed McKinsy and the
project has already begun.
20 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
We want to change the entire
concept of work-flow at the branch.
We would like to make all our branch
outlets as marketing offices and push
all the time consuming routine work
to a centralised back office.
The idea is to ensure that people at
the bank should be able to afford
customer services in a much better
way. People at the branch will be in a
position to do marketing of products
and services. The idea is to make
business development faster which is
turn will boost productivity and
finally, improve customer service.
Hence, we have now laid down
norms on how banking should be
done at a branch.
We have identified three branches
in Mumbai, namely Bandra, Crawford
Market and Colaba and have
implemented the project in those
branches on a pilot basis. These three
branches are now working on the new
concept of customer service.
We have seen our ATM hits go up.
We have a seen substantial number of
Internet-based transactions
happening in banking. So, these
positive developments have already
taken place. We are trying to learn
from our experience at the pilot when
we roll it out across our entire
network.
What are your other agenda?
Our balance sheet size till March,
’09 was at Rs 3,37,000 crore and it is
likely to go up to Rs 4,05,000 crore by
March, ’10. We see it to be at Rs 5,00,000
crore by March, 2011. Fifteen lakh
customers will be added to our fold by
March, 2011. Our whole focus is on the
liability side. Still, I am not
compromising on the quality of
assets.We are also expanding our
overseas business. This year, we are
going to recruit 3,500 people including
2,000 officers. ◆
THE 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
‘We are a delta on the
Indian economy’
Steered by Aditya Puri, managing
director, HDFC Bank has grown at a
steady 30%. He speaks with Shobhana
Subramanian and Saikat Das of the
Financial Express about interest rates,
inflation and increasing deposit rates.
Excerpts:
How do you see the base rate
taking shape?
The base rate is not going to change
the fundamentals of banking. The
banks have been taking into account
the tenure of the loan, the risk profile of
clients and the liquidity available while
lending. The RBI is saying it wants
greater transparency than what the
BPLR provided, possibly because a lot
of lending has been done to the AAA
corporate at below the BPLR. Now, this
is a function of excess liquidity in the
market and also competition. So what
happens is that the person borrowing a
higher amount for a shorter tenure will
get a cheaper rate. The base rate has
been defined as the bank’s base cost but
that’s not the base cost of the total
deposits or of a deposit of any tenure.
So a bank is free to take the base cost of
a 90-day deposit.
Will there be a big difference
between the base rates of banks?
Normally, loans are priced either
over marginal cost or over average cost.
Both are safe. But for a new loan, banks
use the marginal rate so banks may opt
for the marginal cost. I don’t think
there will be too much of a difference
when the new system sets in, because
the basic business hasn’t changed. So
it’s possible SBI may set it at 8%, PNB
may set it at 7%. The rate will move
towards the lower side rather than the
higher side. I don’t see interest rates
moving up systemically. There might
have been a systemic shift had RBI said
that banks would have to use the
average cost of deposits to calculate the
22 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
deposit cost. As for the marginal cost,
banks may use the 90-day term deposit
or the 180-day term deposit rate.
Where do you see interest rates
headed in the next few months?
Ten-year yield go up. Whether
interest rates go up, depends on
sentiment and how much they are able
to control inflation. The government
has clearly announced a lower
borrowing programme and so one can
expect a yield of between 8-8.5% if they
meet their commitment and depending
on inflation being higher than that
towards the end of the year. Quite a bit
of the inflation is priced in the 8% and
the general expectation is that it may go
to 8.5% by June-July. Unless something
untoward happens, yields should not
go up beyond this. In fact, short- and
medium-term rates, even up to one or
two years, may not go up, since
liquidity is still in excess of Rs 70,000
crore in reverse repo, despite the hike
in the cash reserve ratio. Some amount
is there with the mutual funds as well.
Banks been raising deposit rates?
What is your view?
We haven’t raised rates across
tenures but for some shorter and some
longer tenure deposits, reflecting the
increase in rates in the system at the
long end. Even if we raise rates now,
the actual momentum comes in only
after about three months with a lag and
so by then we would have raised rates
by between 0.25 and 0.5%, which is the
kind of increase we are expecting in
overall yields, not particularly short-
term yields.
Would this increase hurt the
demand for loans?
No. The rates that you are seeing
today for autos or homes are a function
of a slowing economy and excess
liquidity. Car loans were at 9-9.5%, so if
they move up back there, it’s not the
end of the world. It’s hard to see a year
ahead in today’s environment but we
don’t see any big move in interest rates.
We need to see what happens on
liquidity, inflation, private demand and
the GDP. We are seeing some pick-up in
corporate borrowing but not a runaway
pick up. This pick up is for working
capital. Drawdowns on investment
have not happened. Companies say
they are moving ahead on capex but we
have to see greater evidence of it. Retail
demand for the system as a whole
hasn’t been great but we are
experiencing good demand. If
production of cars increases by 30%,
demand for car loans will also
increase. Actually, the demand for
home loans never faltered. If
GDP grows by 8%, credit de-
mand can grow by about
20% next year. HDFC Bank
normally grows faster
than the system.
What is the bank’s
immediate term
strategy for growth?
We have just doubled our
capacity and right now don’t
need to look further. We just
doubled our distribution
network from 725 to1,720 branches. Our
business model is different, it’s based
on branches and that’s why we are
comfortable with retail loans and our
cost of funds. Not only is our CASA
high, around 60% of our personal loans
are sold through branches, and 70% of
our cards are sold to our customers
through branches as well. They are an
integral part of our strategy.
HDFC Bank has an
enviable CASA
THE FINANCIAL EXPRESS
ratio of 52%. Is this sustainable?
No, it’s not sustainable. The reason
we have 52% CASA is because deposits
have been growing slowly, so there’s the
denominator effect and once growth
picks up we will need to borrow more
fixed deposits. I would say our normal
range for CASA is between 45 and 48%.
Our asset growth is a function of GDP
growth, so if GDP grows at 8%, the
market will grow at 22-23% and we’ll
grow by 2-3 % more than that.
Is the bank looking for an
international presence?
Our international business is based
on our strengths in India. We have
correspondent arrangements with
people all over the Middle East and
other parts of the world and are major
players in NRI remittances. Essentially,
we are a delta on the Indian economy. ◆
៉ MARCH 2010 ៉ 23
 AXIS BANK ៑ NEW PRIVATE SECTOR BANK ៑ RANK: 2

24 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010

Shikha Sharma, MD&CEO, Axis Bank
‘Competition is always
good for the customer’
It’s about a year since Shikha
Sharma took over the reins at Axis
Bank. In conversation with Shobhana
Subramanian, the MD and CEO
observes that while new banking
licences will help grow the market and
benefit customers, much would also
depend on the kind of players who
come in. Excerpts:
What are your thoughts on the
base rate?
What the Reserve Bank is trying to
do is to bring in more transparency
and one of their concerns is that
policy rates are not being transmitted
to all lenders. So that’s the attempt.
I think as opposed to the PLR, when
there were huge differences, which
got narrowed out through discounts
below the PLR now, because you
cannot lend below the base rate, I
suspect there will be a
narrowing. So definitely base rates
will be in a more narrow range but
there will be differences based on
banks’ strategies. I think an
assessment of where the base rates
can settle will have to be decided
closer to the date of implementation
in July.
Do you think banks will choose the
marginal cost or a weighted
average cost to fix the base rate?
It might be difficult for a bank to fix
the base rate based on the basis of
weighted average cost because it may
already have assets, which are locked
in based on the historical cost of
funds. So the marginal cost has to
have higher weightage while setting
the base rate. Especially if the bank
has relatively well-matched assets and
liabilities, then the future is
determined more by the marginal
cost. If there are some mismatches
between the assets and liabilities,
then perhaps the strategy may be
somewhat mixed.
The government plans to give new
licences. Do you think that’s a good
idea?
Competition is always good for the
customer but it also depends on the
kind of competition. The regulator
should ensure that there is a level-
playing field between the old and the
new in terms of regulatory
commitments. It depends on what
kind of players come into the market;
if we have players who have a track
record and the desire to build a long-
term high quality banking business, it
will be good for the market because it
will inevitably grow the market. The
good thing about being in India is that
we are in a high growth phase, so
anything that taps that opportunity
and expands the market is good. But,
as I said, nothing is absolute. It all
THE FINANCIAL EXPRESS
depends on the kind of players who
come in.
How does Axis Bank plan to tap the
prosperity in the rural markets?
Compared to our peers, Axis Bank
has more of a presence in the tier II
and tier III towns. So we do have some
learnings, which we can use going
into rural areas, but we don’t really
have a full-fledged model to take to the
rural markets just now. With
regulatory changes that have
happened and mobile technology
becoming more mature, I think it is
today possible to come up with an
appropriate model for the rural
market.
There are of course policy
initiatives being taken to have more
financial inclusion but, if you look at
the economy, a lot of real industry is
finding that their growth is coming
from rural markets. So the rural
markets are definitely the markets of
the future. So it’s something that we
are focussed on and we will
experiment with a couple of models.
How do you see the role of banks in
infrastructure financing?
We are a significant player in this
space. Nobody has any doubt that
India will see strong growth in
infrastructure, and if we are banks
sitting in India, we have to grow
where growth is going to come from.
So if infrastructure is going to grow
faster than GDP, then we have to be
open to lending to the sector, I think
there is no a choice.
Axis Bank has strengths in this
area, so if it’s a high opportunity area
and we have strengths, we are not at
all embarrassed about going there.
The question is how do you manage
both, concentration risk and interest
rate risk? One thing we do is to lend to
multiple projects across geographies
and sectors.
Also, much of the lending is done at
a floating rate. So while they are of a
long tenure, we don’t have a pricing
mismatch issue, the loans get re-
priced. The valid question is that it
could get translated into a credit risk
because of the floating rate. That’s
something we take of when we do the
appraisal. ◆
៉ MARCH 2010 ៉ 25
 FEDERAL BANK ៑ OLD PRIVATE SECTOR BANK ៑ RANK: 1

26 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010

M VENUGOPALAN, Chairman, Federal Bank
‘We want to emerge as
a prominent lender to
the common man’
South India basedFederal
Bank has had a consistent
track record of growth
and profitability. Being a
focussed bank, it has stuck to
its strengths. The bank now
wants to expand its operational
scope greogrpahically and also
through product development.
M Venugopalan, chairman, Federal
Bank speaks with Saikat Das and
Akash Joshi of the Financial Express
about financial inclusion, the
banks efforts towards reaching out
and imparting financial education.
Excerpts:
In line with increased government
focus on financial inclusion, what
efforts are you moving on that
front?
Our bank has currently 676
branches across the nation. In Kerala
itself, it has 391 branches, of which,
40% are in rural areas. All branches
are connected under the core banking
system. The bank has currently 724
ATMs and has issued 2,910 general
credit cards, with a balance of Rs
577.59 lakh till December 31, 2009.
We have been trying for the
integrated development of villages. In
the last calendar year, we developed 10
villages. In the current year, we have
taken up 15 villages till March. The
adoption of villages has been done
under the Samrudhi scheme. We help
them plan activities beneficial to the
holistic development of villages. In
Kerala, every family is covered by a
bank account.
Could you tell us about the
Samrudhi scheme?
‘Samrudhi’ is a unique
programme aimed at fulfilling the
entire banking needs of the residents
of a Grama Panchayat by making
available the entire range of banking
products or services offered by the
bank. This is so that these villages
can be developed into model Grama
Panchayats through the business
facilitator model in association with
Kudumbashree (Kerala State Poverty
Eradication Mission) Community
Development Societies and reputed
NGOs.
The scope of Samrudhi was
enhanced recently through the
Samrudhi Financial Management
Program (SFMP). It aims to help
improve the financial self-reliance
and well being of villages,
individuals, families and
communities. The social scheme
provides disadvantaged villages,
individuals, families and
communities who are financially
vulnerable or at risk of becoming
financially vulnerable, with the tools
and resources to manage a financial
crisis and overcome hardship.
How do you propose to use IT in
financial inclusion?
Our credit card products are IT
enabled. Kisan Credit Card (KCC)
accounts are ATM enabled with the
‘Federal Haritha Card’. The General
Credit Card (GCC) is also ATM
enabled. The bank is in the process of
introducing the ICT-based banking
correspondent model in the Alleppey
District of Kerala. We are planning to
introduce certain new products on
mobile banking as well in the near
term.
What are the initiatives you have
THE FINANCIAL EXPRESS
undertaken towards imparting
financial education?
We have launched a trust
christened "Federal Ashwas" for the
establishment and running of
"Federal Ashwas Financial Literacy
and Credit Counselling Centres"
(FAFLCC) and three FAFLCC centres
have already started functioning in
the Alleppey District.
We are in the process of
establishing the ‘Federal Bank -
YMCA Training and Guidance
Centre’ in the Wynad district, Kerala,
in association with the YMCA. This
facility will be used by the bank to
provide training to micro and small
entrepreneurs.
What credit growth are you
currently registering?
In the last 10 months during the
current fiscal, Federal Bank attained
a credit growth of 21% (including the
segments of SME, retail and
corporate) surpassing Reserve Bank’s
targeted credit growth of 16%. Our
bank expects to attain a credit growth
of 23% by March 31.
What business expansion plans do
you have?
As per the proposed branch
expansion policy, we aim to open
around 60 more branches all over
India in FY 2010-11.
The bank, which has only a
representative office in Abu Dhabi,
has plans to go global. It might be
seeking regulatory permissions in the
middle term for the same. However,
we are yet to take any concrete
decision on this. Further, we are open
to any potential acquisition at a
reasonable price. It is high time the
Indian banking industry go in for
consolidation.
What are your future goals?
We have a set of three-pronged
objectives. Firstly, we want to be
identified for niche products like SME
banking.
Secondly, we want to be Kerala’s
Number 1 bank, surpassing the State
Bank of Travancore, and finally, we
want to emerge as a prominent lender
in the industry for the common
people. ◆
៉ 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
‘Small-sized banks play
a significant role’
G Nagamal Reddy, MD & CEO,
Tamilnad Mercantile Bank speaks
with Sajan Kumar of the Financial
Express about being a small bank with
more regional flavour, where TMB
stands in the changing atmosphere, the
controversy over the ownership issue of
the bank and other things. Excerpts:
Being a small bank with a more
regional flavour, what kind of
business focus do you have in
terms of retail and corporate?
Small-sized banks contribute
significantly to the total market share
of scheduled commercial banks. Our
regional presence and sense of
belonging have given us a prime
position.
TMB is concentrating on building
safer and more remunerative assets.
Our strategy is to focus on corporate
and retail business, which would fetch
a mix of quality and high yielding
assets. Our incremental CD ratio over
March 2009 works out to 136%, which
shows our aggressive growth in
advances. Plans are on to open
specialised branches at metros to take
focussed care of the credit
requirements of corporate
establishments. The bank already has
a lending portfolio of 37% to
corporate credit. The bank has
already built a retail asset portfolio of
63%. The bank has 24 retail schemes
in the market and four or five
schemes, including home, education,
car and SME credit.
In the retail segment, the bank
finds huge opportunities and the
delinquency rate is considerably less
due to its cautious approach. We
believe that through identifying
credit-worthy retail proposals, the
bank can expand its retail credit
without being aggressive. The bank
identified retail as one of the strategic
areas for growth. The speed in
delivering corporate and retail credit
is another areas the bank has planned
to concentrate on. The bank has also
entered into a MoU with CRISIL for
rating SME borrowers.
How are you planning to improve
your net interest margins?
The bank witnessed a net interest
margin of 3.55% as on February 28,
2010, which is due to the increased
focus on building low cost liabilities
and high yielding assets in SME and
retail sectors.
CASA has improved by 19% when
compared to the previous year ended
March 31, 2009. The credit to the retail
sector has also grown by 24%. The net
profit of the bank has improved by
16% up to February 2010. The full
results of various initiatives are
expected to reflect in the bank’s
current year balance sheet.
How difficult is for you to raise low
cost deposits since you don’t have
much of a branch network?
As the spread started thinning
from 3.53% in the year 2008 to 3.37% in
the year 2009, the bank decided to
improve the CASA component, which
will help in bringing down the cost of
deposits. The necessity of enhancing
the CASA deposits to improve the
bottom line of the bank percolated
down to the people in the branch level
and permeated the organisation.
CASA has become the mantra of the
bank. As the bank has 216 branches
across the country, the mantra of
CASA was echoed in 12 states and in
the hearts of 2,250 TMBians. As a
result, the bank was able to mobilise
Rs 402 crore of CASA deposits, an
increase of 19% growth over March
2009, which works out to 24% of the
total deposits with the existing
THE FINANCIAL EXPRESS
branch network.
During the next fiscal we would
also provide special focus for CASA by
giving specific targets to rural and
semi urban branches to canvass SB
deposits aggressively, whereas metro
and urban branches would be urged to
concentrate on current accounts.
Corporates would be approached for
canvassing salaried accounts with a
bouquet of services leveraging the
fullest use of technology: anywhere
banking, RTGS, NEFT, debit card, net
banking, e-payment etc.
How is the year shaping up?
A thorough understanding of the
prevailing market and customers’
changing requirements, expectations
and the efforts taken by employees at
all levels to meet the expectations of
customers, as well as the preparation
to expand the revenue streams for
sustainable growth, would work well
for building a new brand image and
health for the bank.
The various initiatives taken by the
bank to improve the fee-based income
will boost the bottom line of the bank
in the current year. Due to the focus on
building a higher level of efficiency
and strengthening the margin by
cutting the proportion of high cost
deposits and the size of low yielding
assets, the bank added 1,86,000 new
customers. The bank is harnessing its
strength of technology. Customers
expect a major change in our bank
both in terms of capital structure and
services,
Has the controversy over the
ownership issue been settled?
Since the new board is in place and
the pending AGMs for the years 2008-
2009 have also been held, I feel that the
ownership issue is resolved by the
competent court. With enhancement
in the level of corporate governance
after holding the AGMs and stability
in its operations and consistency in
earnings, the bank will be able to
provide better value addition to its
stake holders.
Efforts will be made to make the
bank more dynamic, in the sense that
it will be adjudged not only as the best
bank but also the fastest growing
bank under each parameter. ◆
៉ MARCH 2010 ៉ 31
 JP MORGAN CHASE ៑ FOREIGN BANK ៑ RANK: 1 ៑ EFFICIENCY ៑ RANK: 1

32 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010

KALPANA MORPARIA, CEO, JP Morgan
‘We will cater with
a suite of services’
In India, JP Morgan runs various
businesses like providing companies
with cash management services, trade
finance and custody services,
investment banking, helping
companies raise debt and equity.
Speaking with Mahalakshmi
Hariharan from The Financial
Express, Kalpana Morparia, CEO,
JP Morgan says the bank intends to
stay within its niche segment rather
than try to compete with its larger peers
who are retail-focussed. Excerpts:
Which are the businesses that you
would like to focus on in India?
In India, we run the investment
banking division, asset management
and wealth management business and
treasury securities and services.
Within the treasury securities and
services, it is normally transaction
banking and custody, giving a
platform to corporates and investors
for cash management, trade finance
and custody business. Investment
banking comprises of the markets
business, constituting fixed income
and commodities. This includes
proprietary trading, client flows,
forex flows and forex derivatives,
followed by the equity institutional
broking business. These are a part of
our markets related businesses. Then,
we have a small principle investment
business where we commit JP
Morgan’s capital to take positions in
equity, hybrid and high yield debt for
Indian companies. We also have a
large corporate finance and
coverage business, which
covers equity capital
markets (ECM),
derivatives
collateral
management (DCM) and mergers and
acquisitions (M&A). We have the
global corporate bank, which is a joint
venture between investment banking
and transaction banking.
What does your client base look
like? Which are the products and
services that you cater to?
On the corporate side there are
multi-national corporations (MNCs)
operating in India. The small
corporate businesses have affiliates
and subsidiaries in India, who need
coverage for cash management to
remittances, sometimes even to credit
on the back of their parent support. If
you think about several large
companies that have their
subsidiaries here, we would be the
typical banker that would cover them.
The second part is Indian companies
that are increasingly globalising. This
is because they are in constant need of
acquisition financing, funding for
their overseas businesses, managing
cash across geographies and across
trade finance and currencies. So, on
the transaction banking side, there is
cash management and trade finance
across the board.
The third set of clients are what I
call ‘local local’. There may not be a
big cross border angle to it but the
reason why we would cover them and
would give them transaction banking
and credit is because we see we can
add a lot of value to them on a purely
corporate finance side. When they
want to raise capital or do an M&A
transaction, we would help them out.
On the investor side, we deal a lot with
all the major funds. We have a
relationship with a lot of fund houses
that are investing across the globe. We
cover them through our
custodian business
and the
THE FINANCIAL EXPRESS
institutional broking business. So, we
have a dedicated sales force, which not
only covers Indian funds that are
dedicated to investing in India or
emerging markets that are investing
in India but also global funds who can
invest in India but don’t necessarily
have a dedicated vehicle to access
notes or eventually a registration
with the Securities and Exchange
Board of India (Sebi).
Are you looking at entering the
retail space?
We believe that retail banking is
something that you can cover out of
mass banking. We believe that Indian
banks have a very unique proposition
to deal with the customers in
managing deposits, mortgages, auto
credit and also understanding the
customer. The kind of distribution
that they have and their ability to
build a great recovery mechanism is
also something very unique. Thus, we
feel that they will always be superior
to foreign banks. The only thing we
think that we can really capture in the
retail space is remittances coming
from the US into India and to that
extent we may look at having a retail
deposit taking franchise if my branch
license approval allows me to do so.
We will be a niche player in this
segment. Retail credit is not
something we are looking at.
What are your hiring plans?
We have two sets of employees in
the bank-one is the business, which is
less than 500 people and I don’t see
that growing beyond a little over that
number. The other is off-shoring,
where we will continue hiring.
What is your share in the market?
We track our market share across
all our businesses. In some of the
transaction banking business and
DCM businesses that we do, we look at
the market share in context with
foreign players.
Last year, we were the number one
player across the ECM business. In
the institutional broking business, we
were in the top four. In the M&A space,
not too many deals happened last year,
but we believe we would have been in
the top two or three. ◆
៉ MARCH 2010 ៉ 33
 CITI ៑ FOREIGN BANK ៑ RANK: 2 ៑ PROFITABILITY ៑ RANK: 1
MARK T ROBINSON, CEO, Citi
‘We wish to be an
efficient franchise’
In the recent past, Citibank India
has managed to tide over the global
financial crisis and build a strong
business in India and has also
participated in several landmark
deals. Speaking with Shobhana
Subramanian and Mahalakshmi
Hariharan of the Financial Express,
Mark T Robinson, CEO, Citi reveals
his plans for the future. Excerpts:
How has the year 2009 been for the
bank? What will Citi focus on in
2010?
I would characterise 2009 as a year
where we repositioned our businesses
to capture the opportunities
presented by the growing Indian
economy in the years ahead. We drew
up a strategic plan with an emphasis
on the sectors where we saw our
natural strengths. Our businesses are
fit to be executed with our expansion
plans. Much of this is consistent with
whatever is happening in Citi globally.
We will be growing our securities and
banking business and transaction
banking business in the Institutional
Clients Group.
We consider the local commercial
bank catering to the middle market
segment as a key to our future growth,
as also the retail consumer bank,
where we are focussing on a well-
calibrated growth strategy, including
liabilities and asset products.
We continue to provide a stronger
customer-centric value proposition to
our retail wealth management and
credit cards businesses, including
investing in world-class technology
platforms.
What will your strategy be in the
corporate and retail lending
spaces?
We allocate capital based on a
careful evaluation of overall returns
on a risk and to this end we review the
34 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
returns from our asset products and
the cross-sell it generates at a firm
level. Our retail and corporate lending
strategies are driven by this approach.
Even during the peak of the global
credit crisis we were open for
business and continued to grow assets
judiciously in our target segments.
We will continue to meet the needs
of our corporate clients through a
combination of balance sheet items
and innovative structures.
On the retail banking front, we
follow the principles of prudent
lending and providing value added
and innovative cards and asset
products to our customers. Our stated
objective is to be the industry-leading
premium, high quality, efficient
banking franchise.
By how much are you looking to
grow your balance sheet?
We are committed to growing our
corporate relationships and
supporting their funding
requirements on balance sheet
lending as well as other forms of
capital raising. We remain focussed
on our key target consumer markets
with products and services that bring
value to our retail customers. We
continue to go slow on unsecured
retail credit, including credit cards in
non-target segments.
Will capital be a constraint for
growth? What would be the share
of CASA in your deposits and the
cost of funds?
Capital has never been a constraint
to our growth in India. Over the last
few years we have consistently
retained our earnings and infused
close to $1.8 billion of capital in the
franchise between the bank and other
legal vehicles. In addition to the
capital that we deploy in our banking
business, we are committed to
substantial capital for proprietary
investments. We are amongst the best
capitalised banks in the industry as
indeed are our non-bank finance
companies.
With respect to the cost of funds, we
have rigorous parameters for
structural liquidity and lay a lot of
emphasis on CASA and other non-
interest bearing sources. These come
to us through our transaction banking
business and the consumer business
and we deploy this liquidity with a
judicious modelling of cost criteria to
manage our balance sheet risk.
Which are the areas that you are
actively lending to? What’s your
share in the secured and
unsecured segments?
It is very difficult to provide you
with an accurate assessment of
market share in the secured and
unsecured segment. However, we are
seeing a steady shift to secured
lending in our consumer portfolio,
whereas in the corporate portfolio,
lending is based on a careful
evaluation of collateral, cash flows,
obligor quality and other criteria.
Your views on growth and interest
rates and the base rate system? Do
you anticipate rate hikes in the
near future?
I feel that the recent budget has
provided a very balanced approach to
growth while providing for a steady
withdrawal of the stimulus packages.
The Reserve Bank of India is faced
with a situation where growth is
accelerating, as is inflation. I think
RBI will continue to display the
balance it always has in adjusting
these monetary instruments to
maintain the right balance. I do expect
that in the short term there could be
modest hikes in the reference rates
but the flow of credit to the economy
will be satisfactory.
The base rate is an interesting
development and should contribute to
transparency of lending rates to
various customer segments of an
individual bank in line with their
credit and other characteristics, while
market forces work towards a
convergence of base rates across
banks. ◆
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-
Ind Bank, speaks with Saikat Das of
the Financial Express regarding the
bank’s growth, its risk management
practices and its hiring plans, among
other things. Excerpts:
What kind of growth have you
witnessed in your business?
We have a total balance sheet of
Rs 33,000 crore, wherein advances are
Rs 19,000 crore. We will probably end
up with a 27-28% loan growth by
March, 2010. We are expecting a credit
growth of 25-30% in FY2011. Our
credit growth will be evenly
distributed across corporate and
consumer lending, including vehicle
financing. While 60% of our loan book
is corporate, 40% is retail. Under the
retail part, we finance 40,000 vehicles
every month, including two/three
wheelers, commercial vehicles and
off-the-road construction vehicles.
We have a wide distribution
network and inherited this structure
from the merger of Ashok Leyland
Finance. We are small in the home and
commercial vehicle segments.
How focussed is the bank on risk
management practices?
All areas of risks, including credit
risk, operational risk and market risk
must be well-managed. The growth
under IndusInd comes under the risk
management umbrella.
You must have the infrastructure to
manage risks and to support your
growth.
I have seen many financial
Tsunamis like this in my 35-year
career. The lessons from this boils
down to the fact that if you are
running a growth organisation, first
put up the risk management pillars:
market risk and operational risk. Risk
management has to be harsh.
Are you expanding your branch
THE FINANCIAL EXPRESS
network?
We have plans to open 120-150 more
branches by March, 2011 adding to our
existing 210 branches across India.
For half of these new branches we
don’t need RBI’s approval. The latest
regulations have given banks the
freedom to open branches in the tier
III and tier IV centres with population
below 50,000 without seeking
permission from the Central Bank.
We are focussed on the north, west
and south. We have a presence in the
North East as well.
Are operations in remote places
profitable?
It can be profitable. If you treat
financial inclusion as an obligation to
be met at the end of the year, then it is
a loss making proposition. But if you
work on it through out the year as a
business plan, it can be profitable.
Financial inclusion, unless it is
embedded in business, is a loss-
making proposition. We are strong in
the area of micro financing. We give a
lot of three wheeler loans in rural
areas. We provide loans to village
women through micro-financing
schemes. We have zero delinquencies.
What are the bank’s hiring plans?
We have always remained robust in
hiring. In 2008-09, we hired 1,500
people. In 2009-2010, we hired 900
people. By the end of the next fiscal,
we plan to hire 700 people for branch
banking and 900 in the area of
consumer banking (sales operations
and risk management).
Most of our hiring is done through
"Indus Parichay" (our own
recruitment scheme), employee
reference programme and through
head hunters, which constituted 12%
of total recruitment the last time.
For our consumer banking we will
hire more. We call it ‘feet on street’,
under which we recruit sales people. ◆
៉ 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
with the Financial Express
on a host of issues. Excerpts:
How do you see the impact
of the slowdown on the
domestic banking sector?
I think we have been able
to manage the slowdown till
now. Thus, growth has picked
up now. Despite the severe
drought, the country’s
economy is growing by 7%.
Do you feel the Indian
financial system came out
unscathed?
I won't say is it was the
robustness that prevented
the greater damage to the
economic system. Rather, I
would say different players
and regulators have
managed it well. But then,
any financial system is
robust, if the availability
of credit is ensured for a
large segment of society.
Even those who are
very poor manage the
difficult situation very well.
What is the broad lesson for RBI
from the global financial crisis?
The broad lesson is to improve
banking penetration. Secondly, the
monetary policy must be concerned
with asset bubbles. Third, whenever
things are going good, you should be
concerned about the credit growth
and the money supply growth. Fourth,
whenever any particular sector shows
the signs of more volatility and more
risks, counter-cyclical measures
should be taken. There should always
be vigilance in the regulatory system.
Can it lead to a situation over
regulation impeding the freedom
of the markets?
Ideally it should not happen now.
But, whenever any crisis or any
accident takes place, people obviously
get cautious. That is a common thing.
54 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
At the Reserve Bank, we are very
clear. I see the regulators will be
cautious at the global level as well.
Because of that, reforms should not
slow down. At RBI, we are committed
to reforms. And hence we are working
to ensure the penetration of banking
facilities, which means taking
banking services to the doors of the
masses.
Will you allow sophisticated
derivative products in the market?
We should not be concerned about
derivative products. Rather, we should
be worried about providing basic
banking products to everybody. Let
the market take care of other things.
We are not into credit derivative
products like CDS. When we think
that the market is mature enough for
these kinds of derivative products,
then only will we introduce these
products.
The problem is that we
are not at all concerned of
the 90% population of the
country living without
their access to credit.
Moreover, 50% of the
population is does not have
access to any kind of
banking products. I think
that we should be more
concerned about these
issues. We are one of the
poorest countries in the
world. The problem with
the poor in the country is
that they can get money at a
50% interest rate from
moneylenders or even a
30% interest rate when it
comes to microfinance
institutions. Still, they are
unable to get credit from
financial institutions at
even a 15% rate of interest.
That is the tragedy.
What is RBI’s focus?
Well, financial inclusion,
financial stability and
above all, financial sector
reforms. You have to improve
everywhere. You have to bring new
things. Our current focus is confined
to three areas, which include better
protection to customers, better
treatment to customers and finally,
better risk management. There may
be more regulations from RBI on the
subject in the future.
How are you planning to do that?
We will do it by way of promoting
financial literacy. Now, we have made
some progress on this topic. Still, I
think that financial literacy can't be
done by the Reserve Bank alone. You
need to involve other regulators too.
The recently formed Financial
Sector Stability & Development
Council is also discussing the
financial inclusion issue. If we have
to take products and services to the
poor, you need have the help of
technology as a front-end device. ◆
 GUEST COLUMN ៑ K V KAMATH
Weathering the storm and
emerging a global force
I
NDIA has been among
the first economies to
recover from the
impact of the global
financial and economic
crisis. While this high-
lights the positive
fundamentals driving
long-term growth in the
country, it also brings into
focus the resilience of our
financial sector in the
face of a crisis that had its
genesis in the financial
systems of the West.
It is important to have
a perspective on the
challenges that arose
from the global financial
crisis for our economy
and financial sector. The
impact was mainly
through the trade and
capital flow channels,
with a resultant impact
on domestic liquidity and
business confidence.
These challenges and the
rapidity of their
emergence created a
mood of shock and
erosion of confidence among
businesses, consumers, lenders and
investors. The corporate sector was
faced with a new cost-price-demand
equation, to which it had to adjust
quickly. In this environment, the
banking system had to deal with
challenges on the liquidity front and
the risk of increased corporate
defaults given the sudden decline in
corporate profitability. Lower
business confidence and increased
risk perception adversely impacted
banking system credit growth, both in
the retail and corporate segments.
The fact that we successfully
navigated these challenges is no small
achievement. The basis of this
achievement was the inherent
56 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
soundness of the Indian banking
system. The banking system entered
the global financial crisis in much
better shape than the previous
economic down cycle of the 1990s. The
Indian banking system was
characterised by healthy capital
ratios, conservative leverage, stable
funding based largely on deposits and
a healthy asset quality profile. It is also
important to remember that the global
financial crisis did not have any
adverse impact on our domestic
fundamentals and its impact therefore
was largely transitory.
As such, the regulatory response to
these developments was to ensure
stability of the overall system while
dealing with the large and sudden
shock from the global
markets. As part of its
confidence building
measures, the Reserve
Bank of India significant-
ly reduced interest rates
in the economy and
provided adequate
liquidity support to all
sectors.
Simultaneously, the
government announced
key fiscal measures
aimed at both, supporting
sectors facing difficulties
as well as maintaining an
overall demand impetus
in the economy. These
measures had a
stabilising impact on the
economy and the banking
sector.
The development of
the banking sector will
mirror the country’s
economic growth
momentum. With the
economy expected to
grow at sustained high
rates over the next
decade, the opportunities
for the banking system will be
significant. Favourable demographics
and increasing incomes will continue
to drive growth in retail banking,
while increased investments,
particularly in the infrastructure
sector, will create opportunities in
corporate banking.
As such, the domestic momentum
itself has the potential to elevate the
Indian banking system to global
prominence. Continued
liberalisation, focus on enhancing
financial deepening and increasing
systemic efficiency would be the key
to realising this potential.
The author is chairman,
ICICI Bank