Public sector banks (PSBs) were able to increase their total income significantly in 2009-10, while the foreign banks show a sharp decline.
However, foreign banks? spendings on advertisement constituted more than 1% of their total income during last three years ? 2009-10, 2008-09 and 2007-08 ?where as public sector banks and private banks ad spends were less than 1% during the period.
The growth of ad spends, however, was negative for all the three groups during 2009-10 and 2008-09 except for foreign banks during 2008-09.
In absolute terms, the 19 foreign banks registered a total income of Rs 34,684 crore in 2009-10 as against Rs 43,043 crore in 2008-09 (a decline of 19.4%). The advertisement expenses of these banks were Rs 541 crore in 2009-10 against Rs 619 crore in the previous year. Decline in ad spendings were seen in the case of Barclays Bank followed by Citibank NA and DBS Bank.
PSBs earned total income of Rs 3.58 lakh crore in 2009-10 as against Rs 3.17 lakh crore in 2008-09 (13.1% increase). PSBs advertisement expenses were Rs 686 crore in 2009-10 against Rs 774 crore in the previous year. Significant decrease in ad spends were seen in the case of Union Bank, Vijaya Bank and Andhra Bank.The top three spenders on advertisement in 2009-10 were SBI, Bank Of India and IDBI Bank.
The ratio of advertisement expenditure to total income of foreign banks decreased from 1.92% in 2007-08 to 1.44% in 2008-09 and increased to 1.56% in 2009-10.
The ratio in PSBs increased from 0.22% in 2007-08 to 0.24% in 2008-09 and decreased to 0.19% during 2009-10. In private banks, the ratio steadily decreased from 0.55% during 2007-08 to 0.37% during 2008-09 and 0.33% during 2009-10.