FE-E&Y India’s Best Banks: The fine print

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weights is has been discussed.

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 (category), 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 parameters, it is found that banks with very few (less than five) branches and total assets of less than Rs 4,000 crore may compare favourably against larger banks. These are primarily foreign and smaller old-private sector 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 five or less branches either during 2005-06 or 2006-07 or total assets less than Rs 4,000 crore have been excluded.

8. Also, excluded are banks that merged their operations with other banks during 2005-2006 or 2006-07, for example, pursuant to the merger of Bharat Overseas Bank with Indian Overseas Bank, the parameters of the merged entity are taken for 2007, whereas the parameters of erstwhile Bharat Overseas Bank have been dis-regarded for 2006 and the financial numbers of erstwhile Bharat Overseas Bank are not aggregated with Indian Overseas bank for 2006. Sangli Bank and Lord Krishna Bank reported their financial statements as separate legal entities (the banks were formally merged with ICICI Bank and Centurion Bank of Punjab subsequently), therefore, these banks have been considered in the survey.