Foreign banks, in spite of having the smallest share (at around 8%) in the Indian banking industry, have recorded fastest growth of assets during the last five years.
The growth of the foreign entities vis-?-vis public sector (PSBs) and private banks is significantly higher during the period between 2005 and 2009. The average total assets figure for 12 foreign banks stood at a compound annual growth rate (CAGR) of 32.52%, while the average total business (deposits and advances) of the foreign ones rose 24.12% during the same period.
In the case of PSBs, the CAGR of total assets and total business stood at 21.05% and 24.02%, respectively. But for private banks , the the figures were at 26.42% and 27.24%, respectively. India?s largest foreign bank, Citibank NA, showed a 32.81% CAGR of total assets as against 23.33% of total business during the study period. On the other hand, SBI, the largest commercial bank, also showed a 20.35% CAGR of total assets as against 22.56% of total business during the last five years.
But ICICI Bank, the largest private bank in terms of business, showed a 22.54% CAGR of total assets as against 22.93% of total business during the period under review.
In actual value terms, total assets of 12 foreign banks steadily climbed up from Rs 1.26 lakh crore in 2004-05 to Rs 3.88 lakh crore in 2008-09. Total business of these foreign banks also moved up to Rs 3.32 lakh crore from Rs 1.39 lakh crore. Total deposit of these banks also rose from Rs 73,967 crore in 2004-05 to Rs 1,86,007 crore in 2008-09.
Among the foreign banks, the highest CAGR in total assets was recorded by Barclays Bank, followed by DBS Bank, Calyon Bank and Hongkong & Shanghai Bank. Total assets of Barclays Bank went up from Rs 935 crore in 2004-05 to Rs 20,697 crore in 2008-09.
In the year 2008-09, the top five foreign banks in terms of assets are Citibank NA, Standard Chartered, Hongkong Shanghai, ABN Amro Bank and Barclays Bank Pl.
But in the year 2004-05, the positions were different in order of priority. During that period, Standard Chartered topped the list, followed by Citibank NA, Hongkong & Shanghai, ABN Amro and Bank Of Nova Sco.
Citibank replaced Standard Chartered for the top slot in 2006-07 and is enjoying the lead since then. Bank Of Nova Sco, which featured in the top five group five years back, was edged out by the Barclays Bank in 2008-09. Hongkong Shanghai and ABN Amro Bank NV, however, held their positions same for both the time periods.
Similarly, in case of private banks, the highest CAGR in total assets was recorded by YES Bank. It was followed by Kotak Mahindra Bank ,Axis Bank and HDFC Bank. Total assets of YES Bank increased from Rs 1275 crore in 2004-05 to Rs 22,901 crore in 2008-09.
In case of 27 PSBs, the highest CAGR in total assets was witnessed by Punjab & Sind Bank, followed by Corporation Bank , Syndicate Bank and State Bank of Mysore . The total assets of Punjab & Sind Bank shot up from Rs 15,717 crore to Rs 41,382 crore during the study period.