best banks in india

7/29/2019 Best Banks in India

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GROWTH

Deposits Loans and Advances

Fee Income

Operating Profits Market Share

Deposits

CASA


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SIZE

Deposits Operating Profit

Balance Sheet


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STRENGTHS

C-Capital Adequacyo CAR

o CAR Tier-1

A- Asset Qualityo Ratio of priority sector advances to total advances

o Ratio of secured advances to total advances

o Ratio of net NPA To net advances

M-Management Qualityo Business per employee (in Rupees Lakh)

o

Profit per employee (in Rupees Lakh)o Return on equity

o Return on advances


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STRENGTHS

o E- Earnings Quality

o Ratio of interest income to total assets

o Ratio of net interest income to total assets (Net Interest

Margin)

o Ratio of operating profits to total assets

o L-Liquidityo Return on assets

o Cash - Deposit Ratio

o Credit - Deposit Ratio


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SWOT ANALYSIS


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Strengths

HDFC bank is the second largest private banking sector in India having 2,201

branches and 7,110 ATMs HDFC bank is located in 1,174 cities in India and has more than 800 locations toserve customers through Telephone banking

The banks ATM card is compatible with all domestic and internationalVisa/Master card, Visa Electron/ Maestro, Plus/cirus and American Express.This is one reason for HDFC cards to be the most preferred card for shoppingand online transactions

HDFC bank has the high degree of customer satisfaction when compared toother private banks

The attrition rate in HDFC is low and it is one of the best places to work inprivate banking sector

HDFC has lots of awards and recognition, it has received Best Bank awardfrom various financial rating institutions like Dun and Bradstreet, Financial

express, Euromoney awards for excellence, Finance Asia country awards etc HDFC has good financial advisors in terms of guiding customers towards right

investments


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Weakness

HDFC bank doesnt have strong presence in Rural

areas, where as ICICI bank its direct competitor isexpanding in rural market

HDFC cannot enjoy first mover advantage in rural areas.

Rural people are hard core loyals in terms of banking

services. HDFC lacks in aggressive marketing strategies like ICICI

The bank focuses mostly on high end clients

Some of the banks product categories lack in

performance and doesnt have reach in the market

The share prices of HDFC are often fluctuating causing

uncertainty for the investors


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Opportunities

HDFC bank has better asset quality parameters

over government banks, hence the profit growth islikely to increase

The companies in large and SME are growing atvery fast pace. HDFC has good reputation in terms

of maintaining corporate salary accounts HDFC bank has improved its bad debts portfolioand the recovery of bad debts are high whencompared to government banks

HDFC has very good opportunities in abroad

Greater scope for acquisitions and strategicalliances due to strong financial position


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Threats

HDFCs nonperforming assets (NPA) increased

from 0.18 % to 0.20%. Though it is a slight variationits not a good sign for the financial health of thebank

The non banking financial companies and new age

banks are increasing in India The HDFC is not able to expand its market share asICICI imposes major threat

The government banks are trying to modernize tocompete with private banks

RBI has opened up to 74% for foreign banks toinvest in Indian market


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SWOT ANALYSIS


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Strengths

The bank has a network of 1,493 domestic branches and 8,324

ATMs

The bank has its presence in 971 cities and towns

The banks financial positions grows at a rate of 20% every year

which is a major positive sign for any bank

The companys net profit is Q3FY12 is 1,102.27 which has a

increase of 25.19% growth compared to 2011


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Weaknesses

Majorly they concentrated in corporate, wholesale banking, treasury

services, retail banking Foreign branches constitute only 8% of total assets

Very recently the bank started focusing its attention towards personalbanking and rural areas

The share rates of AXIS bank is constantly fluctuating in highermargins.

There are many fraudulent activities involved in credit cards.

Their financial consultants are not wise enough to guide thecustomers towards right investments.

Customer service has to improve a lot in order to be in race withother major players.


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Opportunities

Acquisitions to fill gap In 2009, Alliance with Motilal Oswal for online trading for 10 million customers

In 2010, acquired Enam Securities Pvt Ltd broking and investment banking

In Sep 2009, SEBI approved Axis Asset Management Co. for mutual fund business

No. of e-transactions increased from 0.7 million to around 2 million

Geographical expansion to rural market 80% of them have no access to formal lending

Now number of branches increased to 1493 from 339.

Last quarter there were 48 new branches opened across the Nation

Since its a new age banking there are lot of opportunities to have the advancetechnicalities in banking solutions compared to existing major players

The assets in their international operations are growing at a very faster pace with agrowth rate of 9%.

The concept of ETM (Everywhere teller machine) by AXIS Bank had a good response in

terms of attracting new customers in personal banking segment

Th


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Threats

Since 2009, RBI has increased CRR by 100 basis points

Increased repo rate reverse repo rate by 50 points 11

times of late

Increasing popularity of QIPs due to ease in fund raising

RBI allowed foreign banks to invest up to 74% in Indian

banking Government schemes are most often serviced only by

govern banks like SBI ,Indian Banks, Punjab National

Bank etc

ICICI and HDFC are imposing strong threats in terms oftheir expansion in customer base by their aggressive

marketing strategies


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STRENGTHS

The capital adequacy ratio of YBL at 17.9% is well above

minimum requirements of 9%

Annualised RoA has been at or above 1.5% over last 4

years

Annualised RoE has been at or above 20% over last 4

years.

Over the years, YBL has brought down the cost to income

ratios to 36%-38%, far below the industry average.

Cost to income ratio of 45% and

High profitability per employee as compared to peers.

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WEAKNESSES

Small player in the banking space.

low market share - network of branches (~360)

relatively smaller than its peers.

brand awareness among retail customers is lower.

relatively lower CASA base due to higher exposure

to corporate banking.

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OPPORTUNITIES

Savings rate deregulation by the RBI has offered an

opportunity to gain significant savings account market shareby offering better rates and services to customers.

entry into new product or segments like retail assets - the

ability to cross sell product to retail customers would

enhance profitability over the long run. The large middle class population of India.

Smaller towns and rural India still provide a huge untapped

potential for expansion

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THREATS

The tight monetary policy adopted by the RBI with a view

to tame inflation could dampen corporate credit off take.

Overall business could also be impacted due to reduction in

asset quality and rise in NPAs.

Expansion may lead to increase in costs and overall

reduction in operating profit.

Recent regulatory changes including revised priority sector

norms, adoption of BASEL III norms could result in lower

profitability for the banking system in general.

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QUESTION

AND

ANSWERS11 February 2013 22


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THANK YOU

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best banks in india

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