Even as the world financial markets have seen either the total disappearance or the loss of positions of top banks and financial institutions due to ongoing subprime crisis, it is now time for the Indian state owned banks and financial institutions to scale heights in global markets.
State Bank of India, the country’s largest bank and GIC Re, the sole official reinsurer, have improved their global rankings. SBI with over Rs 7 lakh crore assets has improved its ranking from 70th to 57th position, according to the latest annual top 1,000 bank list prepared by the UK based leading banking publication The Banker. Also in the latest list of top 40 global reinsurers prepared by the prominent rating agency, Standard & Poor’s, GIC Re with assets over Rs 36,000 crore, has moved up from 22nd to 16th position. The global list is prepared on the basis of global premium earned by the reinsurers.
GIC Re which has emerged as the leading reinsurer in the Afro-Asia region has improved its ranking over Japanese reinsurance majors like Mitsui Sumitomo , Sompo Japan Insurance and now has aggressive plans to expand into different parts of the world. ‘Our international business contributes 27 % to our revenues and we expect growing it to 50% in next five years ,’ said Yogesh Lohiya, chairman & managing director, GIC Re. The company’s total premium in 2007-08r was Rs 9,300 crore.
However in the list of top 1000 banks, ICICI Bank , country’s second largest commercial bank has fallen by three notches from 147th to 150th. during 2007-08. Similarly state owned Bank of Baroda, has fallen by 21 notches to 280 from 259th position during the same period. HDFC Bank, after the merger with Centurion Babnk of Punjab, has moved up hugely from 336th to 219th postion. The other bank which have moved up in the rankings ladder are Punjab National Bank (250, 255), Oriental Bank of Commerce ( 348, 378), Bank of India (373, 411), Union Bank of India (431, 496), Corporation Bank(498, 507). Together there are 22 Indian banks which have been featured in the top 1,000 banking list . The 1,000 global banking rankings are based on the definition of Tier 1 capital as defined by Basel’s Bank for International Settlement (BIS). The object of the survey is to show the bank’s soundness in relation to the Basel requirement of a minimum Tier 1 capital on risk weighted assets of 4% and minimum ratio of capital to risk weighted assets of 8%