20 Indian banks in top 500 global banking list

by khalid on 02/02/2010 · 0 comments

Brand Finance Plc has come out with top 500 global banks list for the current year. There are 20 Indian banks in this list and it is very encouraging for India growth story. Indian banks may not be bankers to the world yet, but they have clearly set their eyes on that. In a year that saw the worst recession for the global banking industry with several big daddies collapsing, resilient Indian banks have improved their brand value rapidly.

The State Bank of India (SBI) became the first Indian bank to break into the world’s Top 50 list, according to the Brand Finance study that saw HSBC retain its top slot for the third year in a row.

The report from Brand Finance Plc used discounted cash flow methodology to arrive at a net present value (NPV) of the trademark and associated intellectual property: the brand value. SBI’s brand value increased three times to $4551 million, up from $1448 million in 2009 and placed itself in 36th spot in the list. ICICI Bank, the country’s largest private bank, joined it in the Top 100 list with a 130% jump in its brand value at $2164 million.

Other big gainers in brand value include IDBI Bank (190%), Bank of Baroda (162%) and Union Bank of India (148%). The cumulative brand value of 20 Indian banks stood at $13053 million. The 15 Indian banks that figured in last year’s list saw a whopping 130% rise in their combined brand value.

The number of Indian banks in the global list had more than tripled last year to 19 from six in 2007. Differentiation through strong brand and customer base value is becoming a key economic lever for Indian banks. This is as true in financial services as in consumer products.

“Indian banks need to recognise their inherent brand value potential and SBI’s remarkable performance by breaking into the top 50 financial services brands offers a lesson for others,” said Unni Krishnan, MD of Brand Finance India. SBI seems to be fast transforming into a brand-led business, with a broader, more holistic and sophisticated approach to managing the brand and stakeholder relationships.

Asian aura shows Over all, HSBC remained the biggest bank brand for the third year in a row with its brand value rising 12% to $28472 million. This must have been a relief to the bank that saw its brand value erode by 28% in 2009 league table.

The report shows that global banking sector has begun to show tangible signs of recovery, with the world’s 500 most valuable banking groups growing by 62% in terms of market capitalisation and their brand values cumulatively increasing by 49%.

“This year’s BrandFinance® Global Banking 500 shows how significant the recovery of global banking brands has been,” said David Haigh, CEO of Brand Finance plc. The total brand value of the Top 500 banks stands at $716 billion, up 49% over 2009 and 4% higher than in 2008, prior to the crisis.

“There has been a significant shift in the balance of power globally away from the US and towards banks in emerging markets,” said Mr Haigh.

The Asia region contributed 17% to the total global brand value, logging 31% growth in 2010. However, the number of Asian banks in the global 500 has dropped to 102 in 2010 from 120 the previous year.

Almost all banks in the Asian Top 10 have increased in brand value. However, this rise is not as strong as witnessed in more developed regions like Europe and North America, as they recover from the crisis.

The biggest movement in the league table was made by SBI, which has seen its brand value more than triple to sixth biggest bank brand in Asia.

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