COMPARATIVE STUDY OF SELECT FOREIGN BANKS VIS-A-VIS TOTAL FOREIGN IN INDIA T.VINILA
Assistant Professor of Commerce Smt N.P.Savitramma Govt College(w) Chittoor.
& Research Scholar of Andhra University, Visakhapatnam.
_______________________________________________________________________ Abstract
Independent India witnessed “Land mark events” in the financial system in general and the banking system in particular, which affected the functioning of Foreign Banks in India both directly and indirectly. Some of the key policy and legislative measures such as the nationalization of the Reserve Bank of India, the passing of the Banking Companies Act, 1949, introduction of five year economic plans, conversion of the Imperial Bank of India into the State Bank of India, take over of the Princely State Owned Banks and their conversion into subsidiaries of SBI, introduction of deposit insurance, etc., left an indelible mark on the banking scene in India. Among these, the passing of Banking Companies Act, 1949 (Presently Banking Regulation Act) was considered to be the “single most vital legislative initiative” , as this was very instrumental to repaint the whole banking canvas including the position and functioning of the Foreign Banks operating in India during the successive years of free India.
In the context of emerging financial and banking scenario of openness, economic liberalization and globalization and promotion of greater economic efficiency, the need for an expanded role and operation of foreign banks has gained further momentum in India. The policy framework of RBI in the form of a declaration of the Road Map for foreign banks in India in 2008 testified this further. There is an tremendous growth in foreign banks in India which stands for a mark of entry of free market into the country.
key words : Foreign Banks, HSBC, CITI Banks, ABNAMRO, Deutsche Bank, Standard Chartered Bank INTRODUCTION:
In terms of working of foreign banks which previously dealt only in big money, have now also started performing the day to day banking performing the day to day banking function include acceptance of deposit and creation of credit. They also help in internal trade. Standard Chartered Bank, HSBC, Deustche Bank,Citi Bank,ABN AMRO in India contributes the highest in terms of numbers of branches, employees, business ,in terms of efficiency, profitability, productivity etc, the top five banks in the country are the foreign banks. The activities of foreign banks are restricted mainly to metropolitan markets. Even through, these banks may be having a small number of branches, but they enjoy a sizeable presence in the non fund business and are earning huge profits NEED FOR THE STUDY :
Though a number of studies have focused on the different aspects of foreign banks operations, majority of these studies were conducted during the period prior to 1995. In view of the importance attached to the foreign banks in India by the RBI since late 90’s with its positive approach, there have been pertinent policy developments taken place. The need to study the contemporary policies of the Government of India and RBI aiming at the aggressive expansion of FBs’ presence in the present context and its likely implications for the Indian domestic banking system.
OBJECTIVES OF THE STUDY :
The objectives of the proposed study are to:
To study the growth of Foreign banks in India during 1999-00 to 2013-14.
Methodology
The information is gathered from different books Reserve Bank of India Publications, Indian Bankers Association, Banking at a glance etc.
Study period : Out of total 43 foreign banks 5 banks namely CITI Bank, HSBC, Deutsche Bank, ABNAMRO, Standard Chartered Bank are being selected for the study.The study is related to the growth of foreign select foreign banks to that of all foreign banks contribution from the year 1999-00 to 2013-14. The performance of is studied taking into account the Number of offices/Branches, Employee, ATMs Deposits, Advance, Bussiness of select foreign banks and all foreign banks.
TABLE 1: Total Employees select 5 Foreign Banks and total Foreign banks
Years ABN
AMRO CITI Bank Deustche Bank Standard Chartered Bank
HSBC Select
5 FBs Total FBs Average
1999-00 854 [6.32] (12.06) 1308 [9.68] (18.47) 518 [3.83] (7.31) 1623 [12.01] (22.91) 2780 [20.58] (39.25) 7083 [52.43] (100.00) 13509
[100.00] 321.64
2000-01 910 [6.43] (11.97) 1476 [10.44] (19.42) 528 [3.73] (6.95) 1654 [11.69] (21.76) 3033 [21.45] (39.90) 7601 [53.74] (100.00) 14143
[100.00] 336.74
2001-02 959 [6.94] (12.17) 1470 [10.63] (18.66) 445 [3.22] (5.65) 1649 [11.93] (20.93) 3355 [24.26] (42.59) 7878 [56.98] (100.00) 13827
[100.00] 345.68
2002-03 986 [8.39] (9.84) 1614 [13.74] (16.11) 405 [3.45] (4.04) 3673 [31.26] (36.67) 3339 [28.41] (33.33) 10017 [85.24] (100.00) 11751
[100.00] 356.09
2003-04 1207 [8.57] (10.74) 2018 [14.32] (17.96) 418 [2.97] (3.72) 4461 [31.66] (39.71) 3130 [22.21] (27.86) 11234 [79.72] (100.00) 14091
[100.00] 427.00
2004-05 1908 [10.99] (13.57) 2754 [15.86] (19.59) 380 [2.19] (2.70) 5232 [30.13] (37.22) 3784 [21.79] (26.92) 14058 [80.95] (100.00) 17367
[100.00] 560.23
2005-06 3093 [13.98] (16.45) 3250 [14.69] (17.28) 978 [4.42] (5.20) 6497 [29.38] (34.55) 4985 [22.54] (26.51) 18803 [85.02] (100.00) 22117
[100.00] 713.45
2006-07 3550 [12.49] (14.54) 5194 [18.27] (21.28) 2250 [7.92] (9.22) 6658 [23.42] (27.27) 6760 [23.78] (27.69) 24412 [85.88] (100.00) 28426
[100.00] 980.21
2007-08 3871 [12.04] (14.30) 4782 [14.87] (17.67) 1695 [5.27] (6.26) 8967 [27.88] (33.13) 7753 [24.10] (28.64) 27068 [84.16] (100.00) 32164
[100.00] 1109.10
2008-09 3241 [10.96] (13.01) 4795 [16.21] (19.25) 1599 [5.41] (6.42) 7825 [26.45] (31.42) 7446 [25.17] (29.90) 24906 [84.19] (100.00) 29582
[100.00] 954.26
2009-10 2716 [9.69] (11.51) 4613 [16.46] (19.55) 1498 [5.35] (6.35) 8084 [28.85] (34.26) 6685 [23.86] (28.33) 23596 [84.21] (100.00) 28019
[100.00] 824.09
2010-11 2165 [7.79] (9.36) 5327 [19.17] (23.03) 1453 [5.23] (6.28) 7813 [28.12] (33.78) 6373 [22.94] (27.55) 23131 [83.26] (100.00) 27783
[100.00] 771.75
2011-12 2039 [7.85] (9.60) 5176 [19.92] (24.36) 1351 [5.20] (6.36) 7516 [28.92] (35.37) 5166 [19.88] (24.31) 21248 [81.76] (100.00) 25987
[100.00] 633.83
2012-13 1623 [6.38] (7.87) 5397 [21.21] (26.18) 1657 [6.51] (8.04) 7211 [28.34] (34.98) 4726 [18.58] (22.93) 20614 [81.02] (100.00) 25442
[100.00] 591.67
2013-14 811 [3.27] (4.12) 5653 [22.79] (28.73) 1730 [6.97] (8.79) 6634 [26.74] (33.72) 4846 [19.53] (24.63) 19674 [79.30] (100.00) 24809
Table-1.1:Compound Growth Rate of Employees of select Foreign Banks and total Foreign Banks in India during 1999-00 to 2013-14
Year ABN
AMRO
CITI Bank
DEUSTCH Bank
Standard Chartered
Bank
HSBC
Select Foreign
Banks
All Foreign
Banks
Employees per bank 1999-00 to
2003-04 41.33 54.28 -19.31 174.86 12.59 58.61 4.31 32.76
2004-05 to
2008-09 69.86 74.11 320.79 49.56 96.78 77.17 70.33 70.33
2009-10 to
2013-14 -70.14 22.54 15.49 -17.94
-27.51 -16.62 -11.46 -29.99 Source: IBA, Performance Highlights of Foreign Banks in India, Different Issues, Mumbai
Figure - 1.1: Compound Growth Rate of Employees of select Foreign Banks and total Foreign Banks in India during 1999-00 to 2013-14
The particulars relating to category wise employees of all the select five foreign banks vis-a-vis all the foreign banks in India during the period 1999-2014 are furnished in table 1. A deep peep into the table reveals that the number of total employees of all the foreign banks has been gradual rise up to the year 2007-08 and since then it came down heavily and same was reported in ABN AMRO and Standard Chartered Bank .this might be due to resorting to the policy of downsizing manpower by the banks , as a measure to the cut the size of establishment expenditure. It is very much significant to observe that the number of officers accounted for about 92 per cent of all the employees of foreign banks and case of Citi Bank, ABNAMRO and Deutsche Bank , it varies from 94 per cent to 96 per cent. It is very much strange enough to notice that ABN AMRO recorded sharp fall in its employees by about 50 per cent during 2013-14 against previous year. The reason for having more number of officers cadre employees in all the foreign banks might be due to the recruitment policy of foreign banks in preferring with diversification skills and expertise as per the contemporary requirements of their techno savvy banking operations.
-100 -50 0 50 100 150 200 250 300 350
41.33 54.28
-19.31
174.86
12.59
58.61
4.31 32.76
69.86 74.11
320.79
49.56 96.78 77.17 70.33 70.33
-70.14
22.54 15.49
-17.94 -27.51 -16.62 -11.46
-29.99
TABLE : 2 Total Branches of Select Foreign Banks in India during 1999-00 to 2013-14
Year
No. of FBs
ABN AMRO
CITI Bank
Deustche Bank
Standard Chartered
Bank
HSBC Select 5 FBs
Total FBs
Aver- age
1999-00 42 8 11 6 18 26 69 181 4.31
2000-01 42 10 15 6 19 28 78 189 4.50
2001-02 40 11 18 5 19 30 83 194 4.85
2002-03 33 13 20 5 65 33 136 180 5.45
2003-04 33 15 26 5 66 36 148 205 6.21
2004-05 31 19 35 5 77 39 175 226 7.29
2005-06 31 23 39 8 81 43 194 255 8.23
2006-07 29 28 39 8 81 47 203 268 9.24
2007-08 29 28 40 10 90 47 215 276 9.52
2008-09 31 30 41 13 90 47 221 292 9.42
2009-10 34 31 42 13 95 50 231 307 9.03
2010-11 36 31 42 15 94 50 232 314 8.72
2011-12 41 31 42 15 94 50 232 320 7.80
2012-13 43 31 42 17 99 50 239 329 7.65
2013-14 43 10 42 17 99 50 218 311 7.23
Table-2.1:Compound Growth Rate of Employees of select Foreign Banks and total Foreign Banks in India during 1999-00 to 2013-14
Year ABN
AMRO
CITI Bank
DEUSTCH Bank
Standard Chartered
Bank
HSBC
Select Foreign
Banks
All Foreign
Banks
Employees per bank 1999-00 to
2003-04 41.33 54.28 -19.31 174.86 12.59 58.61 4.31 32.76
2004-05 to
2008-09 69.86 74.11 320.79 49.56 96.78 77.17 70.33 70.33
2009-10 to
2013-14 -70.14 22.54 15.49 -17.94
-27.51 -16.62 -11.46 -29.99 Source: IBA, Performance Highlights of Foreign Banks in India, Different Issues, Mumbai
Figure – 2.1: Compound Growth Rate of Employees of select Foreign Banks and total Foreign Banks in India during 1999-00 to 2013-14
Branch expansion is another important bench mark with which one can have interbank comparative performance. Hence the details pertaining to number of branches year wise and the
-100-50 0 50 100 150 200 250 300 350
41.33 54.28
-19.31
174.86
12.59 58.61 4.31 32.76
69.86 74.11
320.79
49.56 96.78 77.17 70.33 70.33
-70.14
22.54 15.49
-17.94 -27.51 -16.62 -11.46 -29.99 1999-00 to 2003-04
select bank wise against all the foreign banks during the period 1999-2014 are presented in table (2). A glance at the table reveals that the select banks which accounted for 38.12 per cent of total branches of all the foreign banks during the year 1999-2000, improved stupendously their share to 70.96 per cent by the end of the year 2013-14. The bank wise analysis indicates that out of 69 branches of all the select five banks ,HSBC ranks first with a share of about 38 per cent followed by Standard Chartered Bank and Citi Bank with 26 per cent and about 16 per cent respectively during 1999-2000. However, by the end of the year 2013-14, it was SCB bagging top honour followed by HSBC and Citi Bank.
TABLE 3:ATMs of Select Banks of Foreign Banks in India during 1999-00 to 2013-14
Year ABN AMRO
CITI Bank
Deustche Bank
Standard chartered
Bank
HSBC Select 5 FBs
All FBs in India
Aver age
2004-05 0 359 0 0 158 517 521 16.81
2005-06 103 452 22 174 165 916 936 30.19
2006-07 114 432 24 191 173 934 950 32.76
2007-08 116 465 31 234 178 1024 1039 35.83
2008-09 121 469 31 241 151 1013 1028 33.16
2009-10 124 457 30 243 155 1009 1027 30.21
2010-11 120 651 60 319 151 1301 1367 37.97
2011-12 122 703 64 307 142 1338 1421 34.66
2012-13 120 605 53 303 142 1223 1269 29.51
2013-14 58 600 45 278 146 1127 1179 27.42
Table- 3.1: Compound Growth Rate of ATMs of Select Banks and total Foreign Banks India during 1999-00 to 2013-14
(in number)
Year ABN
AMRO
CITI Bank
DEUSTCH Bank
Standard Chartered
Bank
HSBC
Select Foreign
Banks
All Foreign
Banks
Number of ATM’s
per Bank 2004-05 to
2008-09 0.00 30.64 0.00 0.00 -4.43 95.94 97.31 97.26
2009-10 to
Figure - 3.1 Compound Growth Rate of ATMs of Select Banks and total Foreign Banks India during 1999-00 to 2013-14
The particulars in relation to number of ATM’s together with growth rates foreign banks vis-avis all the foreign banks during 2004-14 are furnished in table 3, As mentioned earlier, the number of ATM’S of all the foreign banks has been on the marvelous increase and the Citi bank among all the select banks established the highest number of ATM’s. However, it is considered to observe that all the foreign banks together witnessed a very disheartened negative growth rate of little above 9 per cent during last five years of the study period against an impressive growth rate of about 97 percent during 2004-9. It is further to note that both the ABN AMRO Bank and HSBC Bank exhibited negative growth rates, whereas the Deustche Bank reported to have positive growth rate in a positive to growth rate in a significant manner
Table-4: Deposits of Select Foreign Banks in India during 1999-00 to 2013-14
(Rs. in Crores)
Year ABN
AMRO CITI Bank
DEUSTCH Bank
Standard Chartered
Bank
HSBC
Select Foreign
Banks
All Foreign
Banks
Aver- age
1999-00
3423 [6.93] (11.58)
10208 [20.67] (34.53)
2167 [4.39] (7.33)
5011 [10.15] (16.95)
8755 [17.73] (29.61)
29564 [59.87] (100.00)
49377
[100.00] 1175.64
2000-01
4610 [7.78] (12.80)
14052 [23.72] (39.01)
2322 [3.92] (6.45)
5088 [8.59] (14.13)
9951 [16.80] (27.62)
36023 [60.81] (100.00)
59240
[100.00] 1410.48
2001-02
4865 [7.54] (11.54)
15242 [23.63] (36.15)
2477 [3.84] (5.87)
7244 [11.23] (17.18)
12341 [19.13] (29.27)
42169 [65.37] (100.00)
64511
[100.00] 1612.78
2002-03
5022 [7.27] (9.05)
17743 [25.67] (31.96)
1945 [2.81] (3.50)
18003 [26.05] (32.43)
12801 [18.52] (23.06)
55514 [80.33] (100.00)
69110
[100.00] 2094.24
2003-04
5856 [7.40] (9.00)
20465 [25.86] (31.45)
2533 [3.20] (3.89)
19949 [25.21] (30.66)
16270 [20.56] (25.00)
65073 [82.22] (100.00)
79141
[100.00] 2398.21
2004-05
7026 [8.13] (9.81)
21484 [24.87] (30.00)
3558 [4.12] (4.97)
22522 [26.07] (31.45)
17013 [19.69] (23.76)
71603 [82.88] (100.00)
86389
[100.00] 2786.74
2005-06
11864 [10.43] (12.16)
27912 [24.54] (28.61)
4380 [3.85] (4.49)
28460 [25.02] (29.17)
24955 [21.94] (25.58)
97571 [85.78] (100.00)
113745
[100.00] 3669.19
2006-07
15998 [10.61] (12.32)
37875 [25.12] (29.17)
6978 [4.63] (5.37)
34174 [22.67] (26.32)
34825 [23.10] (26.82)
129850 [86.14] (100.00)
150750
[100.00] 5198.28
2007-08 18912 46125 13755 37004 42620 158416 191443 6601.48 -60.00
-40.00 -20.00 0.00 20.00 40.00 60.00 80.00 100.00
0.00 30.64 0.00 0.00
-4.43
95.94 97.31 97.26
-53.23
31.29
50.00
14.40
-5.81
11.69 14.80
-9.24
[9.88] (11.94)
[24.09] (29.12)
[7.18] (8.68)
[19.33] (23.36)
[22.26] (26.90)
[82.75] (100.00)
[100.00]
2008-09
15960 [7.46] (9.20)
51677 [24.14] (29.78)
14147 [6.61] (8.15)
41802 [19.53] (24.09)
49970 [23.34] (28.79)
173556 [81.07] (100.00)
214076
[100.00] 6905.68
2009-10
16601 [7.15] (8.75)
54452 [23.46] (28.71)
14693 [6.33] (7.75)
48192 [20.76] (25.41)
55748 [24.02] (29.39)
189686 [81.73] (100.00)
232099
[100.00] 6826.44
2010-11
13947 [5.80] (7.05)
56668 [23.55] (28.65)
14646 [6.09] (7.40)
58419 [24.27] (29.54)
54107 [22.48] (27.36)
197787 [82.18] (100.00)
240667
[100.00] 6685.19
2011-12
13040 [4.71] (5.93)
64698 [23.36] (29.41)
16843 [6.08] (7.66)
63965 [23.10] (29.08)
61423 [22.18] (27.92)
219969 [79.43] (100.00)
276948
[100.00] 6754.83
2012-13
12749 [4.42] (5.82)
66559 [23.10] (30.38)
20794 [7.22] (9.49)
62149 [21.57] (28.36)
56866 [19.74] (25.95)
219117 [76.04] (100.00)
288144
[100.00] 6701.02
2013-14
11626 [3.30] (4.47)
78313 [22.22] (30.13)
26114 [7.41] (10.05)
72112 [20.46] (27.75)
71728 [20.35] (27.60)
259893 [73.74] (100.00)
352424
[100.00] 8195.91
Table-4.1: Compound Growth Rate of Deposits of Select Banks and total India during 1999-00 to 2013-14
Year ABN
AMRO
CITI Bank
DEUSTCH Bank
Standard Chartered Bank
HSBC
Select Foreign
Banks
All Foreign
Banks
Deposits per Bank
1999-00 to
2003-04 71.08 100.48 16.89 298.10 85.84 120.11 60.28 103.99 2004-05 to
2008-09 127.16 140.54 297.61 85.61 193.72 142.39 147.80 147.80 2009-10 to
2013-14 -29.97 43.82 77.73 49.63 28.66 37.01 51.84 20.06 Source: IBA, Performance Highlights of Foreign Banks in India, Different Issues, Mumbai
Figure-4.1: Compound Growth Rate of Deposits of Select Banks and total India during 1999-00 to 2013-14
-50.00 0.00 50.00 100.00 150.00 200.00 250.00 300.00
71.08 100.48
16.89
298.10
85.84
120.11
60.28
103.99 127.16 140.54
297.61
85.61
193.72
142.39 147.80 147.80
-29.97
43.82
77.73
49.63
28.66 37.01 51.84 20.06 1999-00 to
Mobilization of resources in the form of deposits is considered to be the supreme task for any banking institution and hence the concerned data for all the select banks vis-a-vis all the foreign banks together was collected and computed for the period 1999-2014 and the result are furnished in table 4.1 A glance at the table indicates that the average amount of deposits mobilized by a foreign banks tremendously ascended from Rs 1175.64 crores during 1999-2000 to Rs 8195.91 crores during 2013-14 constituting a seven fold growth during the period under review .it is very much significant to obverse that the share of foreign banks in deposits mobilization of all foreign banks. A comparative analysis of interbank performances of the select banks reveals that the Citi banks topped the .list in securing the maximum share of deposits of select banks with about 35 per cent followed by the HSBC with its little below of 30 per cent during the year 1999-2000. However, the end of 2013-14, the record place went in favour of Standard Chartered Bank, while there Citi Bank retained its top slot. A quick look into the growth rates of deposits for the select banks as well as well the foreign banks together discloses that the highest growth rates were recorded for all select banks and all the foreign banks during 2004-05 when select banks and all the foreign banks including the select one consequent on the RBI’s pronouncement on road map for foreign banks and its immediate response from foreign banks positively during this period
Table-5 : Loans and Advances of Select Foreign Banks in India during 1999-00 to 2013-14 (Rs. in Crores)
Year ABN
AMRO CITI Bank
DEUSTCH Bank Standard Chartered Bank HSBC Select Foreign Banks All Foreign Banks Aver- age 1999-00 3928 [10.95] (18.63) 6620 [18.46] (31.39) 1787 [4.98] (8.47) 4319 [12.04] (20.48) 4435 [12.37] (21.03) 21089 [58.81] (100.00) 35858
[100.00] 853.76
2000-01 4236 [9.84] (15.63) 9325 [21.66] (34.40) 2097 [4.87] (7.74) 5200 [12.08] (19.19) 6246 [14.51] (23.05) 27103 [62.96] (100.00) 43051
[100.00] 1025.02
2001-02 4487 [9.23] (12.96) 11385 [23.41] (32.88) 1888 [3.88] (5.45) 9033 [18.57] (26.09) 7836 [16.11] (22.63) 34629 [71.21] (100.00) 48632
[100.00] 1215.80
2002-03 5444 [10.47] (13.30) 12629 [24.28] (30.86) 1608 [3.09] (3.93) 13042 [25.07] (31.87) 8202 [15.77] (20.04) 40925 [78.67] (100.00) 52018
[100.00] 1576.30
2003-04 6697 [11.19] (13.44) 15259 [25.51] (30.62) 2098 [3.51] (4.21) 16152 [27.00] (32.41) 9628 [16.09] (19.32) 49834 [83.30] (100.00) 59822
[100.00] 1812.79
2004-05 9836 [13.06] (15.59) 18111 [24.05] (28.71) 2541 [3.37] (4.03) 19970 [26.51] (31.66) 12621 [16.76] (20.01) 63079 [83.75] (100.00) 75318
[100.00] 2429.61
2005-06 15073 [15.45] (18.16) 24455 [25.07] (29.46) 2582 [2.65] (3.11) 24077 [24.68] (29.01) 16812 [17.23] (20.26) 82999 [85.07] (100.00) 97562
[100.00] 3147.16
2006-07 18388 [14.55] (16.80) 32861 [26.01] (30.03) 4945 [3.91] (4.52) 30104 [23.83] (27.51) 23142 [18.32] (21.15) 109440 [86.62] (100.00) 126339
[100.00] 4356.52
2007-08 20381 [12.58] (15.56) 38377 [23.70] (29.29) 8960 [5.53] (6.84) 33352 [20.59] (25.46) 29944 [18.49] (22.86) 131014 [80.89] (100.00) 161959
[100.00] 5584.79
2008-09 16660 [10.07] (12.77) 39920 [24.14] (30.60) 8798 [5.32] (6.74) 37489 [22.67] (28.74) 27589 [16.68] (21.15) 130456 [78.88] (100.00) 165385
[100.00] 5335.00
2009-10 13406 [8.21] (10.47) 36655 [22.45] (28.63) 12923 [7.92] (10.10) 41552 [25.45] (32.46) 23475 [14.38] (18.34) 128011 [78.41] (100.00) 163260
[100.00] 4801.76
2010-11 10551 [5.40] (7.43) 40597 [20.76] (28.58) 14294 [7.31] (10.06) 49201 [25.17] (34.64) 27401 [14.02] (19.29) 142043 [72.65] (100.00) 195511
2011-12
12535 [5.45] (7.68)
47103 [20.49] (28.85)
12549 [5.46] (7.69)
55570 [24.18] (34.04)
35512 [15.45] (21.75)
163269 [71.03] (100.00)
229849
[100.00] 5606.07
2012-13
12534 [4.75] (6.79)
52036 [19.73] (28.19)
22374 [8.49] (12.12)
61954 [23.50] (33.56)
35709 [13.54] (19.34)
184607 [70.01] (100.00)
263680
[100.00] 6132.09
2013-14
11135 [3.82] (5.42)
56519 [19.41] (27.53)
29014 [9.97] (14.13)
68423 [23.50] (33.33)
40218 [13.81] (19.59)
205309 [70.52] (100.00)
291154
[100.00] 6771.02
Table- 5.1: Compound Growth Rate of Loans and Advances of select Foreign Banks India during 1999-00 to 2013-14
Year ABN
AMRO
CITI Bank
DEUSTCH Bank
Standard Chartered Bank
HSBC
Select Foreign
Banks
All Foreign
Banks
Loans and Advances per Bank 1999-00 to
2003-04 70.49 130.50 17.40 273.98 117.09 136.30 66.83 112.33 2004-05 to
2008-09 69.38 120.42 246.24 87.73 118.60 106.81 119.58 119.58 2009-10 to
2013-14 -16.94 54.19 124.51 64.67 71.32 60.38 78.34 41.01 Source: IBA, Performance Highlights of Foreign Banks in India, Different Issues, Mumbai
Figure – 5.1: Compound Growth Rate of Loans and Advances of Select Foreign Banks and Total Foreign Banks in India during 1999-00 to 2013-14
The extent of loans and advances sanctioned will be usually taken a bench mark to evaluate the operational performance of any banking institution. Hence the relevant statistical data was procured and computed for all the select banks as well as all the foreign banks together and the results were exhibited in table 5.1 there was a massive upsurge in loans and advances from Rs.35858 crores during 1999-2000 to a stupendous level of Rs 291154 crores by the end of 2013-14. In other words , the amount of loans and advances sanctioned by a bank on an average reached to the extent of Rs 677102 from Rs 853.76 crores during the period under report . even the share of select banks in total loans and advances witnessed a marked escalation from about 59 per cent to 70.52 per cent
-50.00 0.00 50.00 100.00 150.00 200.00 250.00 300.00
70.49
130.50
17.40
273.98
117.09
136.30
66.83 112.33
69.38
120.42
246.24
87.73 118.60 106.81 119.58 119.58
-16.94
54.19
124.51
64.67 71.32 60.38 78.34 41.01
above 31 per cent followed by HSBC and Standard bank with about 21 per cent and 20.5 per cent respectively during 1999-2000.however by the term of 2013-14, it was the Standard chartered bank representing one third share of all select banks followed by the Citi Bank with about 27.5 per cent .an analysis of overall trends during the study period indicates that while the share of Deustche Bank and Standard Chartered Bank recorded an impressive upward movement, that of ABN AMRO, Citi Bank and HSBC witnessed downward trend
TABLE: 6 Comparative Picture Total Business of Select Foreign Banks in India during 1999-00 to 2013-14
(Rs. in Crores)
Year ABN
AMRO CITI Bank DEUSTCH Bank Standard Chartered Bank HSBC Select Foreign Banks All Foreign Banks Aver- age 1999-00 7351 [8.62] (14.51) 16828 [19.74] (33.22) 3954 [4.64] (7.81) 9330 [10.95] (18.42) 13190 [15.48] (26.04) 50653 [59.43] (100.00) 85234
[100.00] 2029.40
2000-01 8846 [8.65] (14.01) 23377 [22.85] (37.03) 4419 [4.32] (7.00) 10288 [10.06] (16.30) 16197 [15.83] (25.66) 63127 [61.71] (100.00) 102291
[100.00] 2435.50
2001-02 9352 [8.27] (12.18) 26628 [23.53] (34.67) 4365 [3.86] (5.68) 16277 [14.39] (21.19) 20177 [17.83] (26.27) 76798 [67.88] (100.00) 113143
[100.00] 2828.58
2002-03 10466 [8.64] (10.85) 30372 [25.07] (31.49) 3553 [2.93] (3.68) 31045 [25.63] (32.19) 21003 [17.34] (21.78) 96439 [79.62] (100.00) 121129
[100.00] 3670.55
2003-04 12553 [9.03] (10.92) 35724 [25.71] (31.09) 4631 [3.33] (4.03) 36101 [25.98] (31.42) 25898 [18.64] (22.54) 114907 [82.69] (100.00) 138963
[100.00] 4211.00
2004-05 16862 [10.43] (12.52) 39595 [24.49] (29.40) 6099 [3.77] (4.53) 42492 [26.28] (31.55) 29634 [18.33] (22.00) 134682 [83.29] (100.00) 161707
[100.00] 5216.35
2005-06 26937 [12.75] (14.92) 52367 [24.78] (29.00) 6962 [3.29] (3.86) 52537 [24.86] (29.10) 41767 [19.77] (23.13) 180570 [85.45] (100.00) 211307
[100.00] 6816.35
2006-07 34386 [12.41] (14.37) 70736 [25.53] (29.56) 11923 [4.30] (4.98) 64278 [23.20] (26.86) 57967 [20.92] (24.22) 239290 [86.36] (100.00) 277088
[100.00] 9554.79
2007-08 39293 [11.12] (13.58) 84502 [23.91] (29.20) 22715 [6.43] (7.85) 70356 [19.91] (24.31) 72564 [20.53] (25.07) 2894230 [81.90] (100.00) 353402
[100.00] 12186.28
2008-09 32620 [8.60] (10.73) 91597 [24.14] (30.13) 22945 [6.05] (7.55) 79291 [20.90] (26.08) 77559 [20.44] (25.51) 304012 [80.12] (100.00) 379461
[100.00] 12240.68
2009-10 30007 [7.59] (9.45) 91107 [23.04] (28.68) 27616 [6.98] (8.69) 89744 [22.70] (28.25) 79223 [20.04] (24.94) 317697 [80.36] (100.00) 395360
[100.00] 11628.21
2010-11 24498 [5.62] (7.21) 97265 [22.30] (28.62) 28940 [6.63] (8.52) 107620 [24.67] (31.67) 81508 [18.69] (23.98) 339831 [77.91] (100.00) 436177
[100.00] 12116.06
2011-12 25575 [5.05] (6.67) 111801 [22.06] (29.17) 29392 [5.80] (7.67) 119535 [23.59] (31.19) 96935 [19.13] (25.29) 383238 [75.62] (100.00) 506796
[100.00] 12360.90
2012-13 25283 [4.58] (6.26) 118595 [21.49] (29.38) 43168 [7.82] (10.69) 124103 [22.49] (30.74) 92575 [16.78] (22.93) 403724 [73.16] (100.00) 551824
[100.00] 12833.12
2013-14 22761 [3.54] (4.89) 134832 [20.95] (28.98) 55128 [8.57] (11.85) 140535 [21.84] (30.21) 111946 [17.39] (24.06) 465202 [72.28] (100.00) 643578
[100.00] 14966.93
Note: [Square Brackets] denote percentage to Total Foreign Banks in India (Square Brackets) denote percentage to Select Foreign Banks
Table-: 6.1Compound Growth Rate of Total Business of Select Banks and total Foreign Banks India during 1999-00 to 2013-14
Year ABN
AMRO
CITI Bank
DEUSTCH Bank
Standard Chartered Bank
HSBC
Select Foreign
Banks
All Foreign Banks
Total Business per Bank 1999-00 to
2003-04 70.77 112.29 17.12 286.93 96.35 126.85 63.04 107.50 2004-05 to
2008-09 93.45 131.33 276.21 86.60 161.72 125.73 134.66 134.66 2009-10 to
2013-14 -24.15 47.99 99.62 56.60 41.30 46.43 62.78 28.71 Source: IBA, Performance Highlights of Foreign Banks in India, Different Issues, Mumbai
The select banks vis-a-vis all the foreign banks in India for the period 1999-2014 are depicted in table 9.3. It can be discerned that while all the select banks demonstrated splendid rise in per employee business during the period under study, Standard Chartered Bank in addition to the above two banks City Bank also had unimpressive figure comparing to industry figure. The main reason behind this might be the surging up of number of employees without commensurate rise in total business. This calls for improvement in total business coupling with relationship human capital needs of those banks.
-50.000.00 50.00 100.00 150.00 200.00 250.00 300.00
70.77 112.29
17.12
286.93
96.35 126.85 63.04 107.50
93.45 131.33
276.21
86.60
161.72
125.73 134.66 134.66
-24.15
47.99 99.62 56.60 41.30 46.43 62.78
28.71
