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  1. 1. CONTENTS 18 22 ‘We aspires to become ‘We are a delta on the a global bank’ Indian economy’ K R KAMATH, ADITYA PURI, MD&CEO, Punjab National Bank MD&CEO, HDFC Bank BEST BANKS INSIDE Editorial Indian banks need to scale top 4 26 32 Theme Story Gamechangers in the Indian ‘Emerging as a lender ‘We will cater with banking sector 6 Methodology Rationale to the common man’ a suite of services’ Looking to strengthen and consolidate, M VENUGOPALAN, KALPANA MORPARIA, maintain credit quality and profitability 10 Chairman, Federal Bank CEO, JP Morgan Nationalised Bank Rank 1: Punjab National Bank 18 Rank 2: Bank of Baroda 20 New Private Sector Bank Rank 1: HDFC Bank 22 Rank 2: Axis Bank 24 Old Private Sector Bank 36 54 Rank 1: Federal Bank 26 Rank 2: Tamilnad Mercantile Bank 30 ‘Financial inclusion ‘Go for financial Foreign Bank Rank 1: JP Morgan Chase 32 plans are profitable’ inclusion’ Rank 2: Citi 34 V ROMESH SOBTI, K C Chakrabarthy, MD&CEO, IndusInd Bank Deputy Governor, RBI Credit Quality Rank 1: IndusInd Bank 36 Tables Detailed rankings with banks categorised into public sector banks (PSB), Old Private Sector Banks (OPSB, New Private Sector Banks (NPSB) and 56 Foreign Banks (FB) 38 Regulator Speak: K C Chakrabarty “Go for financial inclusion” 54 Weathering the storm and Guest Column: K V Kamath emerging a global force Weathering the storm and K V KAMATH,Chairman, ICICI Bank emerging a global force 562 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
  2. 2. EDITORIAL Indian banks need to scale up T HE global financial crisis and its aftermath forced banks to introspect about FE-EY BEST BANKS the kind of financial sector architecture India should have in the years ahead. Indian banks escaped the contagion because they were highly regulated at SURVEY 2009-10 home and not too integrated with the global financial system in terms of sharing the risks inherent in the trillions of dollars of worthless financial products. But this does not mean that a rapidly rising Indian economy and its financial Chairman of the Board sector can avoid integrating with the global financial system. India cannot become a Viveck Goenka global player unless its banking system reinvents itself to deal with the thousands Group Editor-in-Chief of businesses which are doubling in size every 4 to 5 years. The one key learning Shekhar Gupta after the financial crises was that Indian banks needed to have size. When Managing Editor international credit delivery froze for several months after the Wall Street crises, M K Venu foreign lenders stopped lending and Indian banks were called upon to rescue Project Co-ordinator companies. Unfortunately, Indian banks found they did not have big enough balance Akash Joshi sheets to meet the exigencies .This resulted in a healthy debate over how Indian Editorial Co-ordinators banks can actually build scale to not only fuel the global ambitions of its domestic Sitanshu Swain, Ayesha Dominica Singh, Sushila Ravindranath businesses, but also to take banking to the next 400 million in rural India. The debate over creating a few Indian banks which rank among the top ten in Editorial Mahalakshmi Hariharan, Kumud Das, Asia is not a new one. But it has assumed fresh urgency in the context of the balance Saikat Das, Sajan Kumar of economic power rapidly shifting towards Asia. God forbid, if there is another Desk financial meltdown and a double dip recession in the West, India will need banks of Ayesha Dominica Singh the size and scale which will keep feeding the growing domestic economy The real . Research Team macro-economic challenge is of garnering another 10% of GDP as savings over the Sujith Pillai, Sandeep Nalge, Tara Boi next decade. Banks have a big role in realising this objective. Initially the Photographers government thought it could persuade public sector banks to merge and thus create A Srinivas, Mahindra Parikh, Vasant Prabhu, scale. There is a counterview that such mergers cannot be forced in a top down Prashant Nadkar, Ganesh Shirsekar, manner, and must be effected in a bottom-up organic way based on real synergies. Dilip Kagda, Pradip Das, Ritika Jain The jury is still out on this one. Design Team Pranab Mukherjee intends to create more competition by issuing new banking Manoj Bhramar, P L Santosh, M P Singh, Rohnit Phore licenses. This is good news ; more competition will strengthen the domestic financial sector and will create conditions for consolidation. Marketing Co-ordinators The Express Group This year FE best Banks has introduced a new test –liquidity which measures Space Marketing Team how much a bank is in a position to meet its liabilities with current assets. In this Production context, some banks which had a much more diversified base of small depositors B R Tipnis & Team had lower bulk borrowings to meet growth on the lending side. Many banks are now Printed for the proprietors, returning to the virtue of lowering the borrowing to deposit ratio. We hope the THE INDIAN EXPRESS LIMITED, by Ms Vaidehi Thakar at analysin the FE Best Banks Awards would help in creating new standards for India’s The Indian Express Press, Plot No. EL-208, banks to move to the next level of globalization as well as localization i.e taking TTC Industrial Area, Mahape, Navi banking to the next few hundred million unbanked in rural India. We are thankful to Mumbai 400 710 and published from Express Towers, our knowledge partner Ernst & Young for evolving newer standards to assess the Nariman Point, Mumbai 400 021. strength, profitability and efficiency of banks. ■ Copyright: The Indian Express Limited. All rights reserved. Reproduction in any manner, electronic or otherwise, in whole or in part, without prior written permission is prohibited. M K VENU4 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
  4. 4. THEME STORY Illustration: ROHNIT PHORE Gamechangers in the Indian banking sector Viren H Mehta domestic system with the best in the International experience with world, even if it appeared financial inclusion has sufficiently T HE Indian banking sector has conservative at times. proved that achieving growth, emerged as one of the strongest As the world recovers from the aggressively tackling competition and drivers of India’s economic global financial crisis, Indian banking social inclusion can go hand in hand. growth. Positive changes witnessed in has remained resilient while con- Indian banks will tremendously the last two decades have impacted tinuing to provide growth benefit themselves and the society by every aspect of banking, ranging from opportunities. With the increased developing focused strategies to regulatory standards to customer participation of new private sector augment the outreach of their management. Indian banks adapting and foreign banks, the Indian banking services to attract the mass market to the changing landscape along with industry has become fiercely com- and consider it as a potential business the vision of the regulator and the petitive. Competition will be further opportunity than as a regulatory Government in shaping the future intensified with the proposed entry of mandate. growth of banking were two of the new private players and non banking As urban markets get adequately noteworthy features of this financial companies (NBFCs). penetrated the competition to sustain transition. and grow the market share, maintain While banks evolved their Financial inclusion margins will force banks to look for strategies in response to increasing Given the sheer size of the newer markets. With rural competition and changing customer unbanked population in India, the development gaining a prominent requirements, the regulator guided its goal of financial inclusion not only position on government agenda, growth with policies of gradual carries tremendous social appeal, but income, awareness and aspirations of liberalisation and benchmarking the also makes definite economic sense. the rural population are bound to6 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
  5. 5. THEME STORY increase. Banks quick to establish effectiveness of mobile technology nearly negligible and product presence in the vast hinterland and will drive regulations that allow differentiation is replicated with ease. customise financial products for the greater use of this technology for This has led to customer poor will capture growth banking transactions whilst understanding and superior service opportunities. Deployment of a effectively controlling it abuse. gaining tremendous prominence. combination of multiple delivery To profitably stay in the race, channels capable of offering timely Risk management successful banks are adding a new convenient and cost-effective services The Indian banking industry is dimension to customer engagement. will stay ahead of the curve. expected to witness unprecedented They are now adopting a complete A feasible option to explore would growth in the volume of business in account-centric approach. This be to effectively partner with the coming decade and this brings essentially involves acquiring a microfinance institutions, local with it huge challenges for risk customer at an early stage and then communities, business management. The financial turmoil building a long-term relationship, correspondents even NGOs to deliver also underlined the indispensability offering different products and financial services and benefit from of the process of internal controls, services not only suitable for different their reach. Use of information corporate governance and risk life stages of the client. technology is another valuable tool. management. A bank with sound risk Human capital development Consolidation management practices in place will be The skill level, attitude and To survive in an increasingly able to precisely ascertain the credit knowledge of the employees have a competitive environment, market profile of its borrowers, resulting in substantial bearing in determining dynamics point towards attaining a enhanced ability to predict default, the competitiveness of a bank. sizeable scale and capital base, Needless to say, banks making possible only through consolidation. Quality risk investments in their human talent Backed by political will and will reap the benefits. favourable economic variables, the management systems Cost optimisation long impending objective to develop a could very well act to the Multiple channels, varied few Indian banks of global scale is no customer profile and vast geographic longer based advantage of a bank spread have contributed to the on surreal expectations. in a country like India, increased distribution cost for banks. To be relevant on a regional or which has a shallow Banks should target the optimal global basis, it will be essential for mix of channels to reach the right Indian banks to explore inorganic documentation customers at minimal cost. Banks are expansion within and outside India. of credit history increasingly leveraging technology to achieve economies of scale in Mobile banking reduce bad debts and raise operations, besides aiming for With the onset of mobile banking, collections. This will in turn enable administrative efficiency . the industry finds itself at the lower capital requirements, improved Another focus area is outsourcing threshold of the next major performance and higher risk adjusted of non-core functions and banks that technological leap. M-banking offers rate of return. manage these challenges will be able significant cost-saving advantages by The proposed implementation of to differentiate themselves in the way of reduced transaction costs and advanced approaches of Basel II will market. is even expected to replace many ensure better quantification and delivery and payment systems. The accounting of various risks thereby Conclusion large and ever-growing mobile base ensuring more holistic risk The banking sector in India offers provides banks with the opportunity management system in the Indian huge opportunities. Upward direction to offer services in areas where they banking industry . of interest rates, increasingly have a limited branch presence. M- Quality risk management systems demanding customers, focus on banking can be an effective tool for could very well act to the advantage of financial inclusion, technological capturing the unbanked rural market a bank in a country like India, which advancements, competition for as almost 50% of new mobile has a shallow documentation of credit human talent and efficient utilisation subscriptions come from rural areas. history, especially in retail banking, of a bank’s resources are some M-banking can be made more and a nascent culture of credit inherent challenges, which need to be incisive if challenges such as information sharing. addressed to unleash the competitive awareness, coverage in rural and advantage offered by the Indian semi-urban areas, widening the scope Account-centric approach banking sector and energise growth. of banking facilities, transparency With rise is competition, banks are and security issues are addressed grappling with increased customer The author is director Ernst & Young , efficiently The pervasive . migration as switching costs are India Pvt Ltd.8 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
  6. 6. METHODOLOGY ៑ RATIONALE Illustration: ROHNIT PHORE Looking to strengthen & consolidate, maintain credit quality & profitability Husain Diwan and Viren H Mehta Recovery" is now the focus of in the Indian banking sector - 27 pub- regulatory strategy . lic sector banks, 13 old private sector T HIS year’s edition of the FE-EY Despite the financial turbulence, banks, 6 new private sector banks India’s Best Banks Survey is set the economic growth of India and 12 foreign banks based on their against the backdrop of remained reasonably unscathed. natural genres. recovery in the global economy after As ever, each category of banks - Five major criteria were selected the widespread financial crisis. The public, old private, new private and to compare performance of the Indian economy continued to grow at foreign banks face its own unique Indian banks. These criteria are - a decent rate as compared to the rest of challenges ranging from credit Strength and Soundness, Credit the world. However, the current crisis defaults and restructuring of loans, Quality, Growth, Profitability and has exposed certain limitations and liquidity, reputation and dwindling Efficiency Considering the current . weaknesses. Liquidity problems and net interest margins to technology scenario of Indian banking, compli- credit defaults have made banks more and manpower. mented with moderate economic risk-averse. A gradual shift from Considering these aspects, Ernst growth, we believe every Indian "Managing Crisis" to "Managing & Young has ranked the players with- bank would be evaluating itself and10 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
  7. 7. METHODOLOGY ៑ RATIONALE essential that banks operate and ‘sweat’ their resources efficiently. Hence, it is important to evaluate a bank’s performance based on effi- ciency with which it has used its human, technological and financial resources. Therefore, Efficiency has been selected as the last major crite- rion with a weight of 0.15. Further, six sub-criteria have also been selected within each major cri- teria to cover the entire spectrum within each of the major criterion. Size, in terms of Capital, Networth and Total Assets, are indi- cators of the fundamental strength of a bank around the world, whereas, Adequacy of Capital, portion of Borrowings as compared to Deposits and Liquidity represent soundness and stability of a bank. Liquidity has been calculated based on the maturi- ty pattern-upto one year of advances and investments less deposits and borrowings. Accordingly, these sub- criteria were selected to measure making peer comparison based on Viren H Mehta (left) and banks based on their Strength and the major criteria selected as above. Husain Diwan of Ernst & Young Soundness. Banks are often com- Trust of the depositors on a bank pared using Total Assets as a bench- and trust of the bank on its borrow- banks’ strategies for market domi- mark. In the current economic con- ers continue to form the foundation nance. Therefore, banking assets and text where efficiency in use of capi- of the banking business. The meas- earnings grew along with the entire tal and effectiveness of deployment ure of this trust is the Strength and economy, but the leaders of the pack of deposits are more respected, a Soundness of a bank. The ability of were required to stand out. weight of 0.20 is assigned to Total a bank to absorb shocks is dependent Accordingly, Growth is the third Assets. Networth comprises both on its strength and soundness. major criterion selected with an total capital and accumulated profits Accordingly, Strength and Soundness assigned weight of 0.20. and accordingly, is assigned the has been selected the first criterion With India experiencing a recov- weight of 0.20, followed by Liquidity to measure Indian banks with high- ery in many areas of the economy in and extent of reliance on shorter est weight of 0.25. the year gone by, it is only expected duration funds as compared to As a result of greater emphasis on that there is a consequential impact deposits (Borrowing/Deposits Ratio) higher exposure to sensitive sectors, on the financiers of the economy In. with both being assigned weights of consumption loans, and restructur- these times, it is imperative that the 0.20 and 0.15 respectively Capital . ing of debt, Credit Quality is once banks should have a minimum Adequacy Ratio and Core Capital are again a key factor on which Indian threshold in terms of size and ade- powerful indicators of a bank’s bank’s performance would revolve quacy of capital to reflect soundness inherent strengths. However, very and is therefore selected as the sec- and maintain an improved credit high Capital Adequacy Ratio and ond criterion. With the global melt- quality However, all these must be . Core Capital could also mean ineffi- down and defaults in credit repay- achieved whilst maintaining prof- cient use of capital. Therefore, a ment due to liquidity and confidence itability Therefore, Profitability is . lower weight of 0.15 is assigned to concerns, admittedly, Credit Quality selected as the fourth major criterion Capital Adequacy Ratio and 0.10 to has re-emerged as a concern. Hence, and assigned a weight of 0.20 match- Core Capital. the weight for Credit Quality has ing the imperative for banks to Increase in Gross NPA, been assigned a weight of 0.20. achieve growth combined with quali- Restructured Loans, Net The slow economic growth experi- ty assets. NPA/Networth, Gross NPA/Gross enced in FY09 was mirrored in the In the environment of upward Advances, Increase in Gross growth of Indian banks. Intense pressure on interest rates, demand- NPA/Increase in Gross Advances competitive forces played a very ing customers, and greater need for and Increase in Net NPA/Increase in important role in determining financial inclusion, it is absolutely Net Advances are the sub-criteria12 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
  8. 8. METHODOLOGY ៑ RATIONALE selected to compare banks on Credit nance of their networth. Hence, this ance, improved technology platforms Quality The rate of increase in gross . sub-criteria is assigned a weight of demand that the human, technologi- non-performing advances compared 0.10 that are a notch lower in cal and financial resources be more with the rate of increase in gross comparison with other aforesaid efficiently deployed and leveraged. advances, and the rate of increase in sub-criteria. Therefore, Spread/Total Assets, net non-performing advances com- Return on Assets, Yield on Operating Expenses/Total Assets, pared with the rate of increase in net Advances, Return on Networth, Cost Business Per Employee, Profit Per advances are considered to be of of Deposits, Cost-Income Ratio and Employee, Non-Interest relatively higher importance to a Return on Investments are the sub- Income/Total Assets, Profit Per bank’s management. Accordingly, criteria selected to measure banks Branch are selected as sub-criteria to these sub-criteria are assigned the based on Profitability The stakehold- . measure Efficiency amongst banks highest weights of 0.25 to assess ers would closely focus on Return on in India. Credit Quality The increase of Gross . Assets and Return on Shareholders’ Spread/Total Assets and NPA has been assigned the next level Funds i.e., Networth. Thus, these Operating Expenses/Total Assets weight of 0.20. One of the policy sub-criteria are also assigned higher measure Efficiency in use of measures to assist businesses to tide weights of 0.20. Currently, different resources and these are assigned over the economic slowdown was to constituents of banks would focus at weights of 0.25 and 0.15 respectively . encourage banks to restructure loans Cost of Deposits and managing costs. Business Per Employee and Profit to customers without affecting their Per Employee measure utilisation of classification. Through this special human capital and are assigned regulatory accounting treatment, weights of 0.15 and 0.20 respectively . although these continue to be classi- With the objective of garnering fied as performing, they evidence deposits and penetrating under inherent credit weakness. banked areas and population, Indian Therefore, the quantum of restruc- banks are increasing their branch tured loans, introduced this year, network and accordingly profit per and networth rendered non-perform- branch has been considered as one ing are the next important aspects of of the sub-criteria to measure Credit Quality and are assigned the efficiency NII reflects the abili- . weights of 0.10. Additionally, the por- ty of the bank to charge its tion of a bank’s gross advances com- customers for its services prising gross non-performing and augment the bottom line advances is assigned a lower weight of the bank without requiring alloca- of 0.10. tion of capital and hence reflects use Growth in Total Assets, Advances, of set organisation skills and net- Deposits, Net Profits, Net Interest Success will be work. Therefore, the last two sub-cri- Income (‘NII’) and Increase in Net teria are assigned weights of 0.15 Worth are selected as parameters for predicated on how banks and 0.10 respectively . assessing Growth. The need for shape their strategies to The results of the ranking are increasing market share in deposits support the Indian based on financial performance of to fuel its funding requirements of banks during FY 2009. While some banks on an effective basis have economy emerging from may not concur with the aforesaid resulted in assigning higher weight a slowdown dissertations, we believe that in the to growth in Deposits of 0.30, fol- current Indian environment, the lowed by equal weights of 0.20 for Accordingly, both these sub-criterion above ranking methodology is most growth in Advances and Net Profits. are equally important and are also appropriate - so much so that when Growth in Total Assets would not assigned equal weights of 0.20. stress tests were performed, the necessarily result from growth in Whereas Yield on Advances and resultant top ranking banks were banking operations as banks could Return on Investments are impor- significantly the same. use the safe-habour of government tant, in the current interest rate sce- Going forward, the success for the investment, instead of lending. nario, these sub-criteria are assigned banking industry as well as individ- Hence it is assigned a weight of weights of 0.10, a notch lower in com- ual institutions will be predicated on 0.10. Further, with the current parison. how banks will shape their strategies stress on net interest margins due to Banks that are able to adapt quick- to support the Indian economy current pressure on interest rates, ly to the evolving economic environ- emerging from a slowdown, encom- focus on improving these has also ment, are the ones that create most pass the vastly under and un-banked sharpened. With implementation value. The increased competition for regions and population and provide of standardised Basel II norms, human and financial capital, the much needed financing for banks are also focussed on mainte- increased expectation on perform- Indian structure. ◆14 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
  9. 9. METHODOLOGY ៑ RATIONALE ៑ FE-EY India’s Best Banks Survey (e) Net Profits Growth (0.20) (f) Deposits Growth (0.30) Approach (iv) Credit Quality (0.20) (a) Restructured Loans (0.10) — Introduced this year (b) NNPA/Networth (0.10) Framework (c) GNPA/Gross Advances (0.10) (d) Increase in Gross Non-Performing Assets (‘GNPA’) (0.20) (e) Increase in GNPA/Increase in 1. Banks were categorised into public sector banks Gross Advances (0.25) (‘PSB’), old private sector banks (‘OPSB’), new private (f) Increase in NNPA/Increase in Net sector banks (‘NPSB’) and foreign banks (‘FB’). With the Advances (0.25) objective of making the comparison more meaningful, (v) Strength and Soundness (0.25) banks with total assets less than Rs 5,000 crore as on (a) Core Capital (0.10) March 31, 2009 and banks that ceased to exist in India (b) Capital Adequacy (0.15) during 2008-2009; were not considered for the rankings. (c) Borrowings/Deposit Ratio (0.15) 2. Financial information for the year ending March (d) Liquidity (0.20) 31, 2009 relating to each of the banks falling into the (e) Total Assets (0.20) aforesaid categories was collected from the data avail- (f) Networth (0.20) able from the Reserve Bank of India. To ensure consis- The rationale for selecting each of the sub-criteria tency, only the published information was used. and assignment of their respective weights is dis- 3. Five different major criteria were identified cussed in above-mentioned article. against which the Indian banks were to be ranked. 5. Banks were ranked, category-wise, within each of These criteria are: (i) Efficiency, (ii) Profitability, (iii) the aforesaid sub-criteria. These sub-criteria ranks Growth, (iv) Credit Quality, and (v) Strength and were multiplied with sub-criteria weights and the Soundness. Considering the current banking, industri- weighted sub-criteria ranks were carried over to each al and over-all economic scenario, pertinent weights of the major criteria. The sub-criteria ranks were then were assigned to each of the major criterion. The multiplied by the major-criteria weights. The resultant rationale for selecting each of the criteria and assign- weighted major-criteria ranks were aggregated to ment of their respective weights is discussed in the determine the best bank in each of the four categories above-mentioned article. and each of the five criteria. 4. Six sub-criterion were selected within each of the 6. As discussed in the abovementioned article, since aforesaid major criteria, which would cover the vari- all the banks, irrespective of their ownership (catego- ous aspects within the aforesaid criteria. Considering ry), compete in the same market place, vie for the same the current banking, industrial and over-all economic customers and are faced with the same situation, it scenario, pertinent weights were assigned to each of was deemed appropriate to determine a best bank the sub-criterion. These sub-criteria and their respec- within each of the major-criteria selected by us. Here tive weights (in brackets) are: the same aforesaid process was followed, but the banks (i) Efficiency (0.15) were not spilt into their respective categories. (a) Non-Interest Income/Total Assets (0.10) 7. While ranking banks of the aforesaid 30 parame- (b) Business per Employee (0.15) ters, it is found that banks with total assets of less (c) Profit per Branch (0.15) than Rs 5,000 crore compare favourably against larger (d) Operating Expenses/Total Assets (0.15) banks. These are primarily foreign banks that operate (e) Profit per Employee (0.20) in India in a very limited manner. Including these (f) Spread/Total Assets (0.25) banks often distort the results and thereby, render the (ii) Profitability (0.20) ranking less meaningful. Accordingly, banks with total (a) Yield on Advances (0.10) assets less than Rs 5,000 crore have been excluded. (b) Return on Investments (0.10) 8. Also excluded are banks that merged their opera- (c) Return on Assets (0.20) tions with other banks during 2008-09, e.g., pursuant to (d) Cost of Deposits (0.20) the merger of State Bank of Saurashtra with State Bank (e) Return on Networth (0.20) of India, the parameters of the merged entity are taken (f) Cost/Income Ratio (0.20) for 2009, whereas the parameters of erstwhile State Bank (iii) Growth (0.20) of Saurashtra have been disregarded for 2009. (a) Total Assets Growth (0.10) (b) Net Interest Income (‘NII’) Growth (0.10) Team Ernst &Young: Viren H Mehta, Husain Diwan, (c) Increase in Networth (0.10) Tanvi Vedak, Surendrakumar Mundra, Karan Shah (d) Advances Growth (0.20) and Vikas Kabra16 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
  11. 11. K R KAMATH, MD&CEO, Punjab National Bank The country is going to witness a dramatic increase in infrastructure‘We aspires to become spending as per the planned expenditure outlined in the 11th Five Year Plan. This would require banks to enhance their capital anda global bank’ strengthen their balance sheets to be able to finance such projects and take a larger share. Globalisation of Indian corporates Punjab National Bank (PNB) is fast banks were lying low during the has also put pressure on Indian banksemerging as a global financial economic slowdown gave an to globalise and have a greaterpowerhouse. KR Kamath, CMD, PNB advantage to public sector banks presence abroad. To offer world classshares his views with Sitanshu like you to move upward in the service to world class corporates andSwain and Kumud Das of the business? satisfy their demands forFinancial Express about the bank’s As I have already said, the crisis sophisticated products, the banksmulti-pronged strategies to achieve brought opportunities as well and would need to strengthen themselvesrapid growth. Excerpts: PNB cashed in on those opportunities through consolidation. to convert them into business, A large chunk of our population The bank has really turned whether in the form of additional still continues to be out of the ambitaround and climbed upwards in loans or even restructuring of some of financial services and financialthe last two years in its existing portfolios. The bank was at inclusion is one of the mostperformance. How has the bank the centre stage of operations when important steps towards inclusiveachieved this feat? others moved away during times of growth. Government ownership and good crisis and downturn. While we did Having said that, let me also addgovernance practices of Indian PSBs grow, it had nothing to do with the that we are not in a hurry For the last .have proved to be pillars of strength business of the private sector and couple of years there is a healthyin times of economic downturn. foreign banks, since our areas of debate going on, which is ironing outEvery crisis brings with it operation are vastly different. the differences between variousopportunities. Punjab National Bank stakeholders on this issue. However,was in the forefront to identify such The fact that the bank is a whenever the opportune time comes,opportunities arising out of the second largest PSB gives you extra we will not hesitate to make the rightglobal slowdown and converted it into responsibility in the consolidation while supporting customers space. What are your plans on this,to handle the situation with as the government is keen to take What is your future vision forconfidence. the consolidation agenda forward? the bank? In addition, the bank’s There is no denying the fact that The bank has envisionedcountrywide presence even deep into the banks in India need to consolidate ambitious growth targets for theremote/rural areas gives it an edge to become bigger and stronger for a period ending 2013. The bank plans toover its peers in the form of variety of reasons. grow its business to Rs 10 lakh croreavailability of low cost resources. The The banks in India are very small by 2013 and increase its customer baseexcellent IT capabilities set up by the as compared to the global banks and to 15 facilitate handling of larger hence to become a global player, PNB aspires to become a globalvolumes in an efficient way The . consolidation is the only way ahead. It bank and plans to implement the bestsound fundamentals of the bank also would be worth mentioning that the global practices to effectively competelent support to the upward movement list of 1000 World banks compiled by in the market by providing a completeof the bank. “The Banker, London” in 2009, carries range of financial services. The bank Our conservative approach and the names of only 32 Indian banks. would also make efforts to sustain itsrobust risk management practices The biggest Indian bank (SBI) is leadership position amongsthelped us to keep our profitability placed at the 76th position in terms of nationalised banks in all domesticintact. The bank’s corporate assets, with $256 billion, wherein the operations, in financial inclusion, ingovernance framework helped in first rank has been bagged by Royal adopting best risk managementmeeting aspirations of various Bank of Scotland with an asset size of practices, in implementing globalstakeholders in a transparent $3,500 billion. Thus, to be able to face best practice in corporate governancemanner. All these facilitated the competition from foreign players, and corporate social responsibilitybank’s superior performance. banks would need to consolidate, and in HR policies. The bank also though such moves need not be aspires to become a universal bank, Do you think the fact that predatory alone. Rather, they could be providing a complete range ofprivate sector banks and foreign collaborative as well. financial services under one roof. ◆ THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 19
  12. 12. BANK OF BARODA ៑ NATIONALISED BANK ៑ RANK: 2 MD Mallya, CMD, Bank of Baroda ‘The whole idea of banking is changing’ MD Mallya, CMD, Bank of Baroda We want to change the entire speaks to FE’s Sitanshu Swain & concept of work-flow at the branch. Kumud Das about the turn around We would like to make all our branch strategies of the bank. Excerpts: outlets as marketing offices and push all the time consuming routine work How did the bank unlock its to a centralised back office. potential? The idea is to ensure that people at The bank has great potential. I the bank should be able to afford should put it on record that it is the customer services in a much better good work done by my predecessors way People at the branch will be in a . that has brought the bank to this level. position to do marketing of products Two-three very significant changes and services. The idea is to make have been made at the bank over a business development faster which is period of three to four years, which turn will boost productivity and have also contributed to a make-over finally, improve customer service. of the bank. Hence, we have now laid down One is on the technology side. norms on how banking should be Second is the brand building exercise. done at a branch. The change in the entire brand has We have identified three branches helped us to develop strong visibility in Mumbai, namely Bandra, Crawford and unlock the value of the bank. Market and Colaba and have Having a brand ambassador was itself implemented the project in those a concept, which was something new branches on a pilot basis. These three to public sector banks. branches are now working on the new concept of customer service. What are the new initiatives you We have seen our ATM hits go up. have taken after you joined? We have a seen substantial number of Among many things, we have taken Internet-based transactions two important initiatives. Last year, happening in banking. So, these we took up a project of business positive developments have already process reengineering (BPR). Having taken place. We are trying to learn put the technology in place, it is the from our experience at the pilot when next step to ensure that you harness we roll it out across our entire the technology pattern for business network. growth through improving customer care services, which need to be What are your other agenda? simplified. The project is known as Our balance sheet size till March, Project Navnirman. ’09 was at Rs 3,37,000 crore and it is The second project is known as likely to go up to Rs 4,05,000 crore by Baroda Next, which is being headed March, ’10. We see it to be at Rs 5,00,000 by an officer in the rank of a general crore by March, 2011. Fifteen lakh manager. Basically, it is a BPR project. customers will be added to our fold by This initiative was taken up by us March, 2011. Our whole focus is on the during the last year itself. Therefore liability side. Still, I am not we started searching for a consultant compromising on the quality of who could help us in realising this assets.We are also expanding our goal. overseas business. This year, we are We appointed McKinsy and the going to recruit 3,500 people including project has already begun. 2,000 officers. ◆20 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
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  14. 14. HDFC BANK ៑ NEW PRIVATE SECTOR BANK ៑ RANK: 1 ៑ STRENGTH ៑ RANK: 1 ៑ GROWTH ៑ RANK: 1 Aditya Puri, MD&CEO, HDFC Bank Banks been raising deposit rates? What is your view? ‘We are a delta on the We haven’t raised rates across tenures but for some shorter and some longer tenure deposits, reflecting the increase in rates in the system at the Indian economy’ long end. Even if we raise rates now, the actual momentum comes in only after about three months with a lag and so by then we would have raised rates Steered by Aditya Puri, managing deposit cost. As for the marginal cost, by between 0.25 and 0.5%, which is the director HDFC Bank has grown at a , banks may use the 90-day term deposit kind of increase we are expecting in steady 30%. He speaks with Shobhana or the 180-day term deposit rate. overall yields, not particularly short- Subramanian and Saikat Das of the term yields. Financial Express about interest rates, Where do you see interest rates inflation and increasing deposit rates. headed in the next few months? Would this increase hurt the Excerpts: Ten-year yield go up. Whether demand for loans? interest rates go up, depends on No. The rates that you are seeing How do you see the base rate sentiment and how much they are able today for autos or homes are a function taking shape? to control inflation. The government of a slowing economy and excess The base rate is not going to change has clearly announced a lower liquidity Car loans were at 9-9.5%, so if . the fundamentals of banking. The borrowing programme and so one can they move up back there, it’s not the banks have been taking into account expect a yield of between 8-8.5% if they end of the world. It’s hard to see a year the tenure of the loan, the risk profile of meet their commitment and depending ahead in today’s environment but we clients and the liquidity available while on inflation being higher than that don’t see any big move in interest rates. lending. The RBI is saying it wants towards the end of the year. Quite a bit We need to see what happens on greater transparency than what the of the inflation is priced in the 8% and liquidity inflation, private demand and , BPLR provided, possibly because a lot the general expectation is that it may go of lending has been done to the AAA to 8.5% by June-July Unless something . corporate at below the BPLR. Now, this untoward happens, yields should not is a function of excess liquidity in the go up beyond this. In fact, short- and market and also competition. So what medium-term rates, even up to one or happens is that the person borrowing a two years, may not go up, since higher amount for a shorter tenure will liquidity is still in excess of Rs 70,000 get a cheaper rate. The base rate has crore in reverse repo, despite the hike been defined as the bank’s base cost but in the cash reserve ratio. Some amount that’s not the base cost of the total is there with the mutual funds as well. deposits or of a deposit of any tenure. So a bank is free to take the base cost of a 90-day deposit. Will there be a big difference between the base rates of banks? Normally loans are priced either , over marginal cost or over average cost. Both are safe. But for a new loan, banks use the marginal rate so banks may opt for the marginal cost. I don’t think there will be too much of a difference when the new system sets in, because the basic business hasn’t changed. So it’s possible SBI may set it at 8%, PNB may set it at 7%. The rate will move towards the lower side rather than the higher side. I don’t see interest rates moving up systemically There might . have been a systemic shift had RBI said that banks would have to use the average cost of deposits to calculate the22 ៉ THE FINANCIAL EXPRESS ៉ MARCH 2010
  15. 15. the GDP We are seeing some pick-up in . network from 725 to1,720 branches. Our ratio of 52%. Is this sustainable?corporate borrowing but not a runaway business model is different, it’s based No, it’s not sustainable. The reasonpick up. This pick up is for working on branches and that’s why we are we have 52% CASA is because depositscapital. Drawdowns on investment comfortable with retail loans and our have been growing slowly so there’s the ,have not happened. Companies say cost of funds. Not only is our CASA denominator effect and once growththey are moving ahead on capex but we high, around 60% of our personal loans picks up we will need to borrow morehave to see greater evidence of it. Retail are sold through branches, and 70% of fixed deposits. I would say our normaldemand for the system as a whole our cards are sold to our customers range for CASA is between 45 and 48%.hasn’t been great but we are through branches as well. They are an Our asset growth is a function of GDPexperiencing good demand. If integral part of our strategy. growth, so if GDP grows at 8%, theproduction of cars increases by 30%, market will grow at 22-23% and we’lldemand for car loans will also HDFC Bank has an grow by 2-3 % more than that.increase. Actually the demand for , enviable CASAhome loans never faltered. If Is the bank looking for anGDP grows by 8%, credit de- international presence?mand can grow by about Our international business is based20% next year. HDFC Bank on our strengths in India. We havenormally grows faster correspondent arrangements withthan the system. people all over the Middle East and other parts of the world and are majorWhat is the bank’s players in NRI remittances. Essentially,immediate term we are a delta on the Indian economy ◆ .strategy for growth? We have just doubled ourcapacity and right now don’tneed to look further. We justdoubled our distribution THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 23
  17. 17. Shikha Sharma, MD&CEO, Axis Bank depends on the kind of players who come in.‘Competition is always How does Axis Bank plan to tap the prosperity in the rural markets? Compared to our peers, Axis Bankgood for the customer’ has more of a presence in the tier II and tier III towns. So we do have some learnings, which we can use going into rural areas, but we don’t really It’s about a year since Shikha narrowing. So definitely base rates have a full-fledged model to take to theSharma took over the reins at Axis will be in a more narrow range but rural markets just now. WithBank. In conversation with Shobhana there will be differences based on regulatory changes that haveSubramanian, the MD and CEO banks’ strategies. I think an happened and mobile technologyobserves that while new banking assessment of where the base rates becoming more mature, I think it islicences will help grow the market and can settle will have to be decided today possible to come up with anbenefit customers, much would also closer to the date of implementation appropriate model for the ruraldepend on the kind of players who in July. market.come in. Excerpts: There are of course policy Do you think banks will choose the initiatives being taken to have moreWhat are your thoughts on the marginal cost or a weighted financial inclusion but, if you look atbase rate? average cost to fix the base rate? the economy, a lot of real industry is What the Reserve Bank is trying to It might be difficult for a bank to fix finding that their growth is comingdo is to bring in more transparency the base rate based on the basis of from rural markets. So the ruraland one of their concerns is that weighted average cost because it may markets are definitely the markets ofpolicy rates are not being transmitted already have assets, which are locked the future. So it’s something that weto all lenders. So that’s the attempt. in based on the historical cost of are focussed on and we will I think as opposed to the PLR, when funds. So the marginal cost has to experiment with a couple of models.there were huge differences, which have higher weightage while settinggot narrowed out through discounts the base rate. Especially if the bank How do you see the role of banks in below the PLR now, because you has relatively well-matched assets and infrastructure financing? cannot lend below the base rate, I liabilities, then the future is We are a significant player in this suspect there will be a determined more by the marginal space. Nobody has any doubt that cost. If there are some mismatches India will see strong growth in between the assets and liabilities, infrastructure, and if we are banks then perhaps the strategy may be sitting in India, we have to grow somewhat mixed. where growth is going to come from. So if infrastructure is going to grow The government plans to give new faster than GDP, then we have to be licences. Do you think that’s a good open to lending to the sector, I think idea? there is no a choice. Competition is always good for the Axis Bank has strengths in this customer but it also depends on the area, so if it’s a high opportunity area kind of competition. The regulator and we have strengths, we are not at should ensure that there is a level- all embarrassed about going there. playing field between the old and the The question is how do you manage new in terms of regulatory both, concentration risk and interest commitments. It depends on what rate risk? One thing we do is to lend to kind of players come into the market; multiple projects across geographies if we have players who have a track and sectors. record and the desire to build a long- Also, much of the lending is done at term high quality banking business, it a floating rate. So while they are of a will be good for the market because it long tenure, we don’t have a pricing will inevitably grow the market. The mismatch issue, the loans get re- good thing about being in India is that priced. The valid question is that it we are in a high growth phase, so could get translated into a credit risk anything that taps that opportunity because of the floating rate. That’s and expands the market is good. But, something we take of when we do the as I said, nothing is absolute. It all appraisal. ◆ THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 25
  19. 19. M VENUGOPALAN, Chairman, Federal Bank undertaken towards imparting financial education?‘We want to emerge as We have launched a trust christened "Federal Ashwas" for the establishment and running of "Federal Ashwas Financial Literacya prominent lender to and Credit Counselling Centres" (FAFLCC) and three FAFLCC centres have already started functioning in the Alleppey District.the common man’ We are in the process of establishing the ‘Federal Bank - YMCA Training and Guidance Centre’ in the Wynad district, Kerala, South India basedFederal programme aimed at fulfilling the in association with the YMCA. This Bank has had a consistent entire banking needs of the residents facility will be used by the bank to track record of growth of a Grama Panchayat by making provide training to micro and small and profitability. Being a available the entire range of banking entrepreneurs. focussed bank, it has stuck to products or services offered by the its strengths. The bank now bank. This is so that these villages What credit growth are youwants to expand its operational can be developed into model Grama currently registering?scope greogrpahically and also Panchayats through the business In the last 10 months during thethrough product development. facilitator model in association with current fiscal, Federal Bank attainedM Venugopalan, chairman, Federal Kudumbashree (Kerala State Poverty a credit growth of 21% (including theBank speaks with Saikat Das and Eradication Mission) Community segments of SME, retail andAkash Joshi of the Financial Express Development Societies and reputed corporate) surpassing Reserve Bank’sabout financial inclusion, the NGOs. targeted credit growth of 16%. Ourbanks efforts towards reaching out The scope of Samrudhi was bank expects to attain a credit growthand imparting financial education. enhanced recently through the of 23% by March 31.Excerpts: Samrudhi Financial Management Program (SFMP). It aims to help What business expansion plans doIn line with increased government improve the financial self-reliance you have?focus on financial inclusion, what and well being of villages, As per the proposed branchefforts are you moving on that individuals, families and expansion policy, we aim to openfront? communities. The social scheme around 60 more branches all over Our bank has currently 676 provides disadvantaged villages, India in FY 2010-11.branches across the nation. In Kerala individuals, families and The bank, which has only aitself, it has 391 branches, of which, communities who are financially representative office in Abu Dhabi,40% are in rural areas. All branches vulnerable or at risk of becoming has plans to go global. It might beare connected under the core banking financially vulnerable, with the tools seeking regulatory permissions in thesystem. The bank has currently 724 and resources to manage a financial middle term for the same. However,ATMs and has issued 2,910 general crisis and overcome hardship. we are yet to take any concretecredit cards, with a balance of Rs decision on this. Further, we are open577.59 lakh till December 31, 2009. How do you propose to use IT in to any potential acquisition at a We have been trying for the financial inclusion? reasonable price. It is high time theintegrated development of villages. In Our credit card products are IT Indian banking industry go in forthe last calendar year, we developed 10 enabled. Kisan Credit Card (KCC) consolidation.villages. In the current year, we have accounts are ATM enabled with thetaken up 15 villages till March. The ‘Federal Haritha Card’. The General What are your future goals?adoption of villages has been done Credit Card (GCC) is also ATM We have a set of three-prongedunder the Samrudhi scheme. We help enabled. The bank is in the process of objectives. Firstly, we want to bethem plan activities beneficial to the introducing the ICT-based banking identified for niche products like SMEholistic development of villages. In correspondent model in the Alleppey banking.Kerala, every family is covered by a District of Kerala. We are planning to Secondly, we want to be Kerala’sbank account. introduce certain new products on Number 1 bank, surpassing the State mobile banking as well in the near Bank of Travancore, and finally, weCould you tell us about the term. want to emerge as a prominent lender Samrudhi scheme? in the industry for the common ‘Samrudhi’ is a unique What are the initiatives you have people. ◆ THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 27
  21. 21. G Nagamal Reddy, MD&CEO, Tamilnad Mercantile Bank branch network. During the next fiscal we would also provide special focus for CASA by‘Small-sized banks play giving specific targets to rural and semi urban branches to canvass SB deposits aggressively, whereas metroa significant role’ and urban branches would be urged to concentrate on current accounts. Corporates would be approached for canvassing salaried accounts with a bouquet of services leveraging the G Nagamal Reddy, MD & CEO, areas for growth. The speed in fullest use of technology: anywhereTamilnad Mercantile Bank speaks delivering corporate and retail credit banking, RTGS, NEFT, debit card, netwith Sajan Kumar of the Financial is another areas the bank has planned banking, e-payment etc.Express about being a small bank with to concentrate on. The bank has alsomore regional flavour where TMB , entered into a MoU with CRISIL for How is the year shaping up?stands in the changing atmosphere, the rating SME borrowers. A thorough understanding of thecontroversy over the ownership issue of prevailing market and customers’the bank and other things. Excerpts: How are you planning to improve changing requirements, expectations your net interest margins? and the efforts taken by employees atBeing a small bank with a more The bank witnessed a net interest all levels to meet the expectations ofregional flavour, what kind of margin of 3.55% as on February 28, customers, as well as the preparationbusiness focus do you have in 2010, which is due to the increased to expand the revenue streams forterms of retail and corporate? focus on building low cost liabilities sustainable growth, would work well Small-sized banks contribute and high yielding assets in SME and for building a new brand image andsignificantly to the total market share retail sectors. health for the bank.of scheduled commercial banks. Our CASA has improved by 19% when The various initiatives taken by theregional presence and sense of compared to the previous year ended bank to improve the fee-based incomebelonging have given us a prime March 31, 2009. The credit to the retail will boost the bottom line of the bankposition. sector has also grown by 24%. The net in the current year. Due to the focus on TMB is concentrating on building profit of the bank has improved by building a higher level of efficiencysafer and more remunerative assets. 16% up to February 2010. The full and strengthening the margin byOur strategy is to focus on corporate results of various initiatives are cutting the proportion of high costand retail business, which would fetch expected to reflect in the bank’s deposits and the size of low yieldinga mix of quality and high yielding current year balance sheet. assets, the bank added 1,86,000 newassets. Our incremental CD ratio over customers. The bank is harnessing itsMarch 2009 works out to 136%, which How difficult is for you to raise low strength of technology Customers .shows our aggressive growth in cost deposits since you don’t have expect a major change in our bankadvances. Plans are on to open much of a branch network? both in terms of capital structure andspecialised branches at metros to take As the spread started thinning services,focussed care of the credit from 3.53% in the year 2008 to 3.37% inrequirements of corporate the year 2009, the bank decided to Has the controversy over theestablishments. The bank already has improve the CASA component, which ownership issue been settled?a lending portfolio of 37% to will help in bringing down the cost of Since the new board is in place andcorporate credit. The bank has deposits. The necessity of enhancing the pending AGMs for the years 2008-already built a retail asset portfolio of the CASA deposits to improve the 2009 have also been held, I feel that the63%. The bank has 24 retail schemes bottom line of the bank percolated ownership issue is resolved by thein the market and four or five down to the people in the branch level competent court. With enhancementschemes, including home, education, and permeated the organisation. in the level of corporate governancecar and SME credit. CASA has become the mantra of the after holding the AGMs and stability In the retail segment, the bank bank. As the bank has 216 branches in its operations and consistency infinds huge opportunities and the across the country, the mantra of earnings, the bank will be able todelinquency rate is considerably less CASA was echoed in 12 states and in provide better value addition to itsdue to its cautious approach. We the hearts of 2,250 TMBians. As a stake holders.believe that through identifying result, the bank was able to mobilise Efforts will be made to make thecredit-worthy retail proposals, the Rs 402 crore of CASA deposits, an bank more dynamic, in the sense thatbank can expand its retail credit increase of 19% growth over March it will be adjudged not only as the bestwithout being aggressive. The bank 2009, which works out to 24% of the bank but also the fastest growingidentified retail as one of the strategic total deposits with the existing bank under each parameter. ◆ THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 31
  23. 23. KALPANA MORPARIA, CEO, JP Morgan institutional broking business. So, we have a dedicated sales force, which not‘We will cater with only covers Indian funds that are dedicated to investing in India or emerging markets that are investing in India but also global funds who cana suite of services’ invest in India but don’t necessarily have a dedicated vehicle to access notes or eventually a registration with the Securities and Exchange In India, JP Morgan runs various management (DCM) and mergers and Board of India (Sebi).businesses like providing companies acquisitions (M&A). We have thewith cash management services, trade global corporate bank, which is a joint Are you looking at entering thefinance and custody services, venture between investment banking retail space?investment banking, helping and transaction banking. We believe that retail banking iscompanies raise debt and equity. something that you can cover out ofSpeaking with Mahalakshmi What does your client base look mass banking. We believe that IndianHariharan from The Financial like? Which are the products and banks have a very unique propositionExpress, Kalpana Morparia, CEO, services that you cater to? to deal with the customers inJP Morgan says the bank intends to On the corporate side there are managing deposits, mortgages, autostay within its niche segment rather multi-national corporations (MNCs) credit and also understanding thethan try to compete with its larger peers operating in India. The small customer. The kind of distributionwho are retail-focussed. Excerpts: corporate businesses have affiliates that they have and their ability to and subsidiaries in India, who need build a great recovery mechanism isWhich are the businesses that you coverage for cash management to also something very unique. Thus, wewould like to focus on in India? remittances, sometimes even to credit feel that they will always be superior In India, we run the investment on the back of their parent support. If to foreign banks. The only thing webanking division, asset management you think about several large think that we can really capture in theand wealth management business and companies that have their retail space is remittances comingtreasury securities and services. subsidiaries here, we would be the from the US into India and to thatWithin the treasury securities and typical banker that would cover them. extent we may look at having a retailservices, it is normally transaction The second part is Indian companies deposit taking franchise if my branchbanking and custody, giving a that are increasingly globalising. This license approval allows me to do so.platform to corporates and investors is because they are in constant need of We will be a niche player in thisfor cash management, trade finance acquisition financing, funding for segment. Retail credit is notand custody business. Investment their overseas businesses, managing something we are looking at.banking comprises of the markets cash across geographies and acrossbusiness, constituting fixed income trade finance and currencies. So, on What are your hiring plans?and commodities. This includes the transaction banking side, there is We have two sets of employees inproprietary trading, client flows, cash management and trade finance the bank-one is the business, which isforex flows and forex derivatives, across the board. less than 500 people and I don’t seefollowed by the equity institutional The third set of clients are what I that growing beyond a little over thatbroking business. These are a part of call ‘local local’. There may not be a number. The other is off-shoring,our markets related businesses. Then, big cross border angle to it but the where we will continue hiring.we have a small principle investment reason why we would cover them andbusiness where we commit JP would give them transaction banking What is your share in the market?Morgan’s capital to take positions in and credit is because we see we can We track our market share acrossequity, hybrid and high yield debt for add a lot of value to them on a purely all our businesses. In some of the Indian companies. We also have a corporate finance side. When they transaction banking business and large corporate finance and want to raise capital or do an M&A DCM businesses that we do, we look at coverage business, which transaction, we would help them out. the market share in context with covers equity capital On the investor side, we deal a lot with foreign players. markets (ECM), all the major funds. We have a Last year, we were the number one derivatives relationship with a lot of fund houses player across the ECM business. In collateral that are investing across the globe. We the institutional broking business, we cover them through our were in the top four. In the M&A space, custodian business not too many deals happened last year, and the but we believe we would have been in the top two or three. ◆ THE FINANCIAL EXPRESS ៉ MARCH 2010 ៉ 33