Are indian banks in better shape than their global peers?<br />
High profits<br />Hike in lending rates<br />Hike in deposit rates<br />Effect of lending rates<br />Increased bank’s earn...
Brief Comparison<br />
Impact of subprime crisis<br />Bank’s losses from:<br />Non-payment by corporates especially SMEs.<br />Share market badly...
Market Condition<br />HDFC Bank<br />ICICI Bank<br />
…contd…<br />AXIS  Bank<br />CITIGROUP<br />
Subprime Crisis – A Comparison<br />ICICI Bank	<br />Citibank<br />Loss of $264m.<br />Due to depreciation in the value of...
FDI vs. FII<br />Indian Banks<br />Global Banks<br />FII is good rather FDI<br />FII also known as speculators or fair wea...
Conclusion <br />Comparing oranges with apples<br />
Ratio<br />
Thank You<br />
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Indian Banks Vs Global Banks 2007 08

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Indian Banks Vs Global Banks 2007 08

  1. 1. Are indian banks in better shape than their global peers?<br />
  2. 2. High profits<br />Hike in lending rates<br />Hike in deposit rates<br />Effect of lending rates<br />Increased bank’s earning due to higher interest on loans<br />Impact of deposit rates<br />Recognized at the time of maturity<br />Indian banks vs. Global banks<br />
  3. 3.
  4. 4. Brief Comparison<br />
  5. 5.
  6. 6. Impact of subprime crisis<br />Bank’s losses from:<br />Non-payment by corporates especially SMEs.<br />Share market badly affected<br />ICICI lost 13.76% to end at Rs. 757.40.<br />HDFC faced change of -15.81%<br />Switching over to retail banking from investment banking.<br />High cut in CRR of 100 points<br />Retail sector badly affected<br />Inflation lowered.<br />
  7. 7. Market Condition<br />HDFC Bank<br />ICICI Bank<br />
  8. 8. …contd…<br />AXIS Bank<br />CITIGROUP<br />
  9. 9. Subprime Crisis – A Comparison<br />ICICI Bank <br />Citibank<br />Loss of $264m.<br />Due to depreciation in the value of securities it bought in the international markets<br />Made additional $70m provisioning for losses<br />ICICI face market change of -31.36% <br />Loss of $18bn.<br />Due to bad mortgage debt.<br />Cut in dividend to 41% i.e. from 54 cents to 32 per share.<br />Job cutting to 20,000<br />Revenues fell 70% from a year earlier to $7.2bn<br />
  10. 10. FDI vs. FII<br />Indian Banks<br />Global Banks<br />FII is good rather FDI<br />FII also known as speculators or fair weather friends.<br />FII inflows are called hot money<br />Benefits: <br />Reduced cost of capital<br />Stability to balance of payments<br />Improving market efficiency<br />Strengthening corporate governance<br />Preferring FDI to FII<br />Got management interest (10% of voting stock in a company)<br />Easy tool to enter a economy.<br />Huge returns from developing countries like India.<br />
  11. 11. Conclusion <br />Comparing oranges with apples<br />
  12. 12. Ratio<br />
  13. 13. Thank You<br />

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