India's best banks 2011: Pics
The 2011 edition of the Business Today-KPMG Best Banks study has thrown up some suprises. Private sector major HDFC Bank was the undisputed leader from 2003 to 2008, but when it pounced on Centurion Bank to acquire size, it lost out on many performance parameters and the top slot.
A public sector bank - Bank of India - rose to the top in 2009 when the global financial meltdown affected many a bank in the country. A year later, Axis Bank came out tops.
Here are the winner...
The Winners:
BEST LARGE BANK
Bank of Baroda
BEST MID-SIZED BANK
IndusInd Bank
BEST SMALL BANK
JPMorgan Chase
MOST CONSISTENT LARGE BANK
Axis Bank
GROWTH, QUALITY OF ASSETS (LARGE BANKS)
YES Bank
PRODUCTIVITY & EFFICIENCY (LARGE BANKS)
IDBI Bank
GROWTH (MID-SIZED BANKS)
Dhanlaxmi Bank
QUALITY OF ASSETS (MID-SIZED BANKS)
Karur Vysya Bank
PRODUCTIVITY & EFFICIENCY (MID-SIZED BANKS)
City Union Bank
PRODUCTIVITY & EFFICIENCY (SMALL BANKS)
JPMorgan Chase
GROWTH, QUALITY OF ASSETS (SMALL BANKS)
Mizuho Corporate Bank
QUALITY OF ASSETS (SMALL BANKS)
Bank of America
BEST LARGE BANK
Bank of Baroda
Above: Chairman and Managing Director M.D. Mallya at the Turf Club, Mumbai.
Winning Strategies:
Back office functions moved to hub, so branch staff can spend time with customers
Emphasis on improving quality of credit portfolio
Return on equity doubled over the past five years
Good operational efficiency, second highest return on capital employed
Higher provisioning than peers for non-performing assets
Strong presence in industrially progressive states such as Gujarat and Maharashtra
Integrated human resources programme for succession planning, experience and drive
BEST MID-SIZED BANK
IndusInd Bank
Change Agents: (From left) Suhail Chander, Head - Corporate and Commercial Banking, IndusInd Bank, Kalpathi Sridhar, Chief Risk Officer, Romesh Sobti, Managing Director and CEO, Sumant Kathpalia, Head - Consumer Banking, Paul Abraham, Chief Operating Officer.
Sobti has followed a brick-by-brick approach to smartly expand the IndusInd Bank portfolio. He plugged the biggest product gap at the bank - home loans - by tying up with housing major Housing Development Finance Corp Ltd.
MOST CONSISTENT LARGE BANK
Axis Bank
Above: CEO & MD Shikha Sharma
Key changes in top leadership, a strong brand, durable relationships and a welldiversified revenue portfolio have been its growth drivers since 2008.
A country's GDP funnels through the banking system. India's growth story will require many more banks to meet its credit needs.' Chanda Kochhar, Managing Director & CEO of ICICI Bank, says India's economic fundamentals should enable it to average eight per cent real GDP growth over the next several years. To support this, bank credit would need to grow by about 2.5 times, or 20 per cent, annually.
This means the current non-food credit of about Rs 40 trillion will grow to about Rs 200 trillion by 2020. 'This is the kind of scale we have to be ready for if banks are to play the role they need to play in this growing economy,' she says. 'I believe these are conservative estimates, we are basing this projection on India's growth in absolute terms as well as relative to other markets.'
'You need a relationship banking approach, not a product-centric one, in small cities,' says Rajiv Sabharwal, Executive Director, ICICI Bank
'We have 250 million accounts and about 170 million customers,' says SBI's Managing Director A. Krishna Kumar.
'We have about 40-45 million transactions daily. The peak was 52 million in March this year. But these transaction values, when converted into dollars, remain insignificant,' he added.
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'The availability of banking services will accelerate the overall economic development of smaller towns and cities,' says Paresh Sukthankar, Executive Director, HDFC Bank
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