The worst seems to be over for the ₹166 lakh crore banking industry. The merger of 10 public sector banks into four large banks is expected to bring scale. De-risking by new leaders at large private banks, especially ICICI Bank and Axis Bank, is showing results. Asset quality deterioration has halted after almost seven years. Balance sheet clean-up is almost complete with banks focusing on strengthening CASA (current account savings account) base, NPA provisioning coverage and return on equity. Last, but not the least, Indian banking returned to profitability in the first half of FY20. This will gather steam as loan recoveries under the insolvency and bankruptcy code (IBC) pick up further.
The BT-KPMG Best Banks and Fintech study took a deep dive into financials of banks for FY19 when conditions were most challenging. But, like every year, it found several stars in the banking universe. HDFC Bank and SBI emerged as joint winners as the Bank of the Year. Kotak Mahindra Bank, which graduated from being a mid-sized bank last year, straightaway secured a third place in the large bank category, only next to HDFC Bank and Axis Bank, in the quantitative study.
Big Boys’ Club
The ongoing consolidation, especially the new set of four large PSBs with assets of ₹10-12 lakh crore each, will transform the competitive landscape. SBI is at ₹36 lakh crore after merging five associate banks with itself. ICICI Bank and HDFC Bank are at around Ì€ 12 lakh crore.
This story is from the March 22, 2020 edition of Business Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the March 22, 2020 edition of Business Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Look Before You Leap
In 2025, Investors Will Need To Factor In Volatility Across Asset Classes
"Focus on the challenge of each customer"
SHASHANK KUMAR MD & CO-FOUNDER I RAZORPAY Razorpay is India's first full-stack financial solutions company
PEDAL ON THE FUTURE
THE MG WINDSOR EV, WITH ITS FUTURISTIC AND MINIMALIST DESIGN, COMBINES THE BEST OF BOTH WORLDS-COMFORT AND TECHNOLOGY
BREATHE EASY
Whether you're battling allergies, looking to remove pollutants, or simply want to breathe easier, the right air purifier can make a difference
The Taste of India in a Glass
FROM ROYAL LIQUEURS TO DISTILLED MAHUA, INDIAN HERITAGE ALCOHOLIC BEVERAGES ARE HAVING THEIR DAY IN THE SUN
MISSING ADVISORS
INDIA HAS JUST ONE INVESTMENT ADVISOR FOR NEARLY EVERY 200,000 INVESTORS. AT A TIME WHEN RETAIL PARTICIPATION IN THE STOCK MARKETS IS BOOMING, THIS ASSUMES SIGNIFICANCE
TURNING A CORNER
SHARED ELECTRIC MOBILITY START-UP YULU'S SHIFT TO SERVICING THE QUICK COMMERCE SECTOR IS HELPING IT GROW FAST. IT IS NOW FOCUSSING ON IMPROVING ROAD SAFETY FEATURES AS IT TURNS EBITDA POSITIVE
REALITY CHECK
INDIAN STOCK MARKETS PLUNGED BEGINNING OCTOBER FOR A HOST OF REASONS, INCLUDING A FALL IN FII OWNERSHIP. HOW DEEP WILL THE CORRECTION BE?
TRUMP'S TRADE TANGO
The return of Donald Trump as the 47th President of the US has put the global economy on edge. India, too, is unlikely to remain unaffected. How will policymakers meet this latest challenge?
"The essence of the Trump administration will be transactional”
Global investor, analyst, and best-selling author Ruchir Sharma decodes why Donald Trump won the elections, what India should do, the risks, and more
