Indian Banks Are Humming
The Banker Magazine has a round up on the health of Indian banks, as it believes that our nation, unlike many others, have avoided a financial meltdown. Most other Indian banks appear to be cruising along too, posting strong third-quarter results for 2008. HDFC Bank, one of the strongest in the private sector, reported a net profit of Rs. 6.2bn ($121.5m) for ‘08 third quarter, a year-on-year growth of 44.8%. Similarly, Axis Bank, another leading private sector bank, reported a strong 63.2% year-on-year increase in net income. In the meantime, publicly owned State Bank of India, the largest bank in the country, showed a 35.5% year-on-year growth in net interest income, while another leading public sector bank, Punjab National Bank,reported an 85.8% year-on-year increase in net profits. State-owned banks account for nearly 75% of the industry’s assets and private sector banks about 20%. Some of India’s 30-odd foreign banks have also announced stellar results in 08. While HSBC Holdings announced a 68% drop in net profit, its Indian operation reported a 26% increase in pre-tax profit. And Standard Chartered’s Indian business was one of the main contributors to its overall revenue, with its wholesale operation growing by 16% and its consumer banking arm by 13%. More in The Banker.