India's Best Banks

In July, the Financial Express newspaper presented its Tenth India’s Best Bank Awards in 12 categories. The banks are selected based on many factors such as growth, profitability, credit quality and strength over the past fiscal year.

The Best Bank awards were presented to the Top Two among each of the following categories:

Public Sector Bank - Indian Bank and Bank of India

Old Private Sector Bank - South Indian Bank and Tamilnad Mercantile Bank

New Private Sector Bank - Axis Bank and HDFC Bank (HDB)

Foreign Bank - Bank of America (BAC) and Citibank (C)

Growth - Deutsche Bank (DB)

Profitability - Standard Chartered Bank

Credit Quality - Union Bank

Soundness - HDFC Bank

Efficiency - Bank of America

The country’s top bankers were also presented awards this year. The Best Bankers awards were given in three categories:

Lifetime Achievement Award - KV Kamat, MD & CEO, ICICI Bank (IBN)

Banker of the Year - OP Bhatt, Chairman, State Bank Of India

Most Innovative Banker - Aditya Puri, MD & CEO HDFC Bank (HDB)

In March, I wrote an article listing the Top Banks of India for 2009 as selected by Dun & BradStreet.

The Bankex Index tracks some of the biggest bank stocks. To view the performance details of this index, go here.

Comments

[Sreeni Meka:]

In India, it is like 2008 Real estate market in USA as far as real estate is concern. The real estate time bomb set to explode in late 2009 or 2010. Over construction, speculation drove the urban land prices unreachable to average Indians.
Even in small towns in India with less job prospects or reliable future tax stream real estate prices are lot higher than thriving American cities. For past year or so real estate transactions came to screeching halt due to slow down in software business. First time many young Indians got to know about cyclicality of economy since Indian economy closely tied to global markets.
I don't know the percentage of these real estate assets in Indian bank balance sheets but if common man cannot afford to buy land or home with his disposable income it is simply American lesson. Real Estate market collapse like Miami condo market, so do the banks in India.

Aug 30 03:11 PM

[ashk1971:]

With some differences:

1) A significant amount of real estate is still financed using black or unaccounted money. As a result, paper values (shown for tax purposes) may be much lower than real values.

Loan-to-value ratios calculated on paper value are significantly higher and the risk of an upside down mortgage is lower.

2) Indian consumer is still likely to be very conservative. Savings rate is amongst the highest in the country. Hence the ability to service mortgage payments is much higher compared to that for the American consumer (pre- and post-recession).

The general thrust of the argument is correct. Any reduction in home values will deteriorate asset values for banks. Just the comparison to Miami is wrong. Unlikely that the repercussions will be as severe.

Aug 31 01:12 AM

[learnmoney:]

The growth of India will come at its own pace but in the meantime more and more Indians will want to know how the East and West finances itself and how they too can do the same.
This means financial education and that is what we will be doing through a new site called LearnMoney India..........watch this space.

Sep 07 08:28 AM