Five Indian banks among world's top 1000

Silicon India
Bangalore: After a year of carnage in the global banking industry, five Indian banks figured in the list of the world's top 1,000 banks in 2009, compiled by trade magazine 'The Banker'. State-owned State Bank of India holds the first position among the Indian banks and ranked 64th position and ICICI bank ranked 81st among global banks.

The top five banks in the world are JP Morgan Chase followed by Bank of America, CITI Group, Royal Bank of Scotland and HSBC Holdings by capital strength. Among all these five banks, HSBC is the only bank that has not received any government support.

The other Indian banks in the global first 500 league are Punjab National bank, HDFC Bank and Bank of India at 239, 242 and 263, respectively.

The rankings are based on nine parameters-the strength of their Tier I capital, the size of their assets, their capital adequacy ratio, pre-tax profit, growth in profit and five performance indicators (profits on average capital, return on assets, cost income ratio, Basle capital ratio and percentage of non-performing loans).

'The Banker', a part of the Financial Times group has been carrying the rankings since 1970. According to publication, banks that stuck to the basics, taking deposits and lending in their home markets fared the best.

"In future banks will be run much more conservatively. Regulators will require them to hold more capitals and be less leveraged which will reduce the profits of the industry as a whole but will bring about a safer banking system," said Brian Caplen, Editor, The Banker.