India Banking Industry Report

 Published On: Mar, 2014 |    No of Pages: 39 |  Published By: Emerging Markets Direct | Format: PDF
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This report profiles India’s banking industry, discussing market trends through 2013 and outlook for 2014 and beyond. The report also highlights leading players in the sector including State Bank of India, HDFC Bank and ICICI Bank.

The Indian banking industry has witnessed a period of consistent growth during the last decade, with banks along with their customers embracing robust systems and processes. The industry saw a consistent rise in the number of reporting offices in the last few years. With Reserve Bank of India (RBI) stressing the policy of financial inclusion, there has been a renewed emphasis on rural expansion.

Industrial slowdown and sticky consumer price inflation created a hostile environment for the country’s banking sector in 2013. The consumer price inflation was in the double digit range during the course of the year. As a result, RBI had to raise benchmark policy rates by xxbps between May 2013 and January 2014. Although private banks were not much affected, most banks in the public sector felt the heat. The cost of servicing debt went up resulting in an increase in bad loans in the rate sensitive sectors. As a result, the profitability of nationalized players also suffered.

However, the outlook for the Indian banking sector is stable backed by considerably sound financial position of its banks. Rising per capita income, growing urbanization and consistent economic growth will drive growth in this sector in the years to come.

Key Points:

• During 2007-xx, the total assets of scheduled commercial banks grew at a CAGR of xx.x%. Public sector banks led by State Bank of India and its associates dominated the Indian banking system in terms of asset size accounting for xx% of total assets.

• Total credit disbursed by scheduled commercial banks grew at a CAGR of xx% during 2003-xx while total deposits of scheduled commercial banks grew at a CAGR of xx% during 2003-xx.

• The asset quality of scheduled commercial banks, particularly public sector banks, has deteriorated during the last two years. A steep rise in interest rates together with industrial contraction led to a sharp increase in non-performing assets. Net NPA ratio of SCBs grew from x.xx% in FYxx to x.xx% in FYxx.

• In order to curb inflation, RBI increased the policy rate (report rate) xx times between March 2010 and October 2011. RBI raised hopes of the industry by cutting report rate by xx basis points between January 2013 and May 2013, but had to gradually raise it again due to sticky inflation.

Table of Contents

Industry Profile
Sector overview
Sector size
Asset profile
Loans and advances
Liability profile
Competitive landscape
Environmental scanning

Market Trends and Outlook
Key economic indicators-India
Monetary policy
Credit growth
Deposit growth
Capital adequacy
Asset quality
Market Outlook

Leading Players and Comparative Matrix
Leading Players
State Bank of India (SBI)
HDFC Bank Ltd (HDFC Bank)
ICICI Bank Ltd (ICICI Bank)
Comparative matrix
SWOT analysis

Tables and Charts

Table: List of major scheduled commercial banks operating in India
Table: Key features of the guidelines on licensing of new banks
Table: Priority sector lending targets and sub-targets
Table: Basel III implementation draft guidelines issued by RBI
Table: Key financial ratios of the leading players
Table: Market multiples

Chart: Number of reporting offices-All commercial banks
Chart: Reporting offices by location
Chart: Number of commercial banks in India
Chart: Reporting offices by type of banks
Chart: Total assets of the scheduled commercial banks
Chart: Asset share by type of banks
Chart: Breakup of assets of Scheduled Commercial Banks
Chart: Total loans and advances disbursed by the SCBs
Chart: Advances approved by sectors
Chart: Segment wise breakup of industrial loans
Chart: Segment wise breakup of service sector loans
Chart: Segment wise breakup of personal loans
Chart: Total investments done by SCBs
Chart: Breakup of investments done by SCBs
Chart: Breakup of liabilities of Scheduled Commercial Banks
Chart: Total deposits in SCBs
Chart: Type of deposits of SCBs
Chart: Ratio of savings deposit and term deposits to total deposits
Chart: Total borrowings done by the SCBs
Chart: Breakup of borrowings done by SCBs
Chart: India's top ten banks in terms of loans/advances
Chart: Current account deficit and fiscal deficit
Chart: Population served per office
Chart: Segment wise breakup of priority sector loans
Chart: Quarterly GDP growth rate-India
Chart: Average Monthly USD to INR Exchange Rate
Chart: Inflation during FYxx-India
Chart: Repo rate
Chart: Cash reserve ratio
Chart: MSF rate
Chart: Y/Y growth in credit-Sector wise
Chart: Y/Y growth in credit-Segment wise
Chart: Deposits during last five years
Chart: Y/Y growth in deposits
Chart: Capital adequacy ratios of Indian banks during last five years
Chart: Net NPA ratio of Indian banks
Chart: Gross NPA ratio of major public sector banks
Chart: Net interest margins of Indian banks
Chart: Return on assets of Indian banks
Chart: Loans disbursed by SBI-Annual
Chart: Net interest margin of SBI
Chart: Asset quality of SBI
Chart: Loans disbursed by HDFC Bank-Annual
Chart: Net interest margin of HDFC Bank
Chart: Asset quality of HDFC Bank
Chart: Loans disbursed by ICICI Bank-Annual
Chart: Net interest margin of ICICI Bank
Chart: Asset quality of ICICI Bank

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