Foreign banks edge out local peers in 2005-06

The 26 foreign banks operating in the country have outperformed domestic banks "" both in public and private sectors "" by posting an impressive 54.76 per cent net profit growth in the last financial year (2005-06).

While private sector banks showed a decent net profit growth of 42.25 per cent last year, their counterparts in the public sector fared badly with a modest 6.91 per cent rise in net profit.

Standard Chartered Bank, the largest foreign bank operating in the country, reported 50.41 per cent growth in net profit to Rs 905.9 crore in 2005-06 "" the highest among its peers.

Citibank retained its position as the second, logging 17.58 per cent rise in net profit to Rs 705.5 crore, and Hong Kong and Shanghai Banking Corporation (HSBC) followed with 52.84 per cent increase in net profit to Rs 514.9 crore.

Among other foreign banks, American Express Bank more than tripled its net profit from Rs 16.62 crore to Rs 52.94 crore, while Barclays Bank's bottomline zoomed 95 per cent to Rs 121.95 crore from Rs 62.48 crore in the previous financial year.

While Bank of America's net profit jumped 80 per cent to Rs 144.56 crore, DBS Bank too posted a similar 78.11 per cent rise in net profit, from Rs 9 crore to Rs 16 crore.

Deutsche Bank logged 63.16 per cent growth in net profit to Rs 125.93 crore. Net profit of the Netherlands-based ABN Amro Bank increased 24 per cent to Rs 241.68 crore, from Rs 195.23 crore in 2004-05. Net profits of HSBC, JP Morgan Chase Bank and StanChart Bank grew in the range of 50-55 per cent.

Two other foreign banks "" Bank of Bahrain & Kuwait and Oman International Bank "" reduced their net losses by over 70 per cent to Rs 6.72 crore (Rs 22.66 crore) and Rs 3.82 crore (Rs 13.87 crore), respectively.

Three more banks "" Bank of Nova Scotia (Rs 31.67 crore), Abu Dhabi

Commercial Bank (Rs 4.58 crore) and Calyon Bank (Rs 76.14 crore) "" managed to come back in the black by posting net profits in 2005-06 against net losses in 2004-05.

Total business (deposits and advances) of all foreign banks in India grew an impressive 30.75 per cent to Rs 2,10,611 crore last year, from Rs 1,61,079 crore in FY05.

While their advances portfolio rose 30 per cent to Rs 97,228.58 crore, from Rs 74,929.64 crore, the deposits base increased 32 per cent to Rs 1,13,382.50 crore, from Rs 86,148.94 crore.

Of the 26 foreign banks operating in the country, only four account for over 82 per cent of total business. StandChart Bank leads the pack by contributing Rs 52,536.54 crore to total business, followed by Citibank with Rs 52,367 crore, HSBC (Rs 41,767 crore) and ABN Amro Bank (Rs 26,940 crore).

Total assets of foreign banks in India swelled by Rs 48,297 crore to Rs 2,00,940 crore last year. Their income grew by Rs 3,081 crore or 34 per cent to Rs 12,186 crore, from Rs 9,105 crore, and expenditure by 27.62 per cent to Rs 5,121 crore.