HDFC Bank (India) outperformed 59 of top tier financial institutions across 13 markets in The Asian Banker Strongest Bank Ranking
The bank has outpaced most of its competitors in growing its loan portfolio while maintaining high profitability, sound risk profile and stable asset quality. April 06, 2011 | Doron Foo1. What is the Asian Banker Strongest Bank Ranking? The Asian Banker Strongest Bank Ranking is an annual end of the financial year assessment of the financial and business performance of the commercial banking industry in the Asia Pacific region. The assessment ranks 59 top performing banks across 15 markets by strength—an evaluation on balance sheet growth, risk, profitability, asset quality and liquidity which we also use for the AB500 ranking which is published in September each year. In updating the AB500 evaluation for the financial year 2010 we were able to identify the strongest banks that demonstrate long-term profitability from its core businesses In our assessment, six out of the top ten banks in our ranking are from emerging markets, leveraging on the robust growth of the general economies in the countries. In 2010, Hong Kong, Taiwan, Japan and South Korea saw average loan growth of 1%, compared to 15.5% in Asia Pacific. Basel III has a negligible impact for most Asia-Pacific banks due to their reasonable core capital buffers, modest reliance on hybrid capital and generally healthy liquidity. Despite being a bank from a developing economy, HDFC Bank has emerged as the strongest bank, achieving a weighted average score of 4.0 out of 5.0 above the average of 3.2 for the strongest peers in other Asia Pacific countries. HDFC Bank excelled in its risk profile, measuring 98 on the Asian Banker Risk Index as compared to its peers’ average of 39.8. In addition, the bank’s stronger than average capital adequacy ratio (17.5% vs. peer average of 14.8%) further fortifies HDFC’s ability to withstand negative shocks in its operating environment. Although the bank stands as the largest private bank in India with assets of $49.4 billion at the end of March 2010, it was still able to achieve a profitability of 1.6% in ROA as compared to the aggregated ROA of its 1.0 % for domestic and 0.6% for regional peers. Categories: asia pac,Asian Banker 500,ranking, Asia Pacific,Asian Banker 500,ranking, Keywords:Strongest Banks, HDFC Bank, India
Strongest Banks, HDFC Bank, India
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