SRINAGAR: HDFC Bank has been awarded as the ‘Best Bank in India’ by global magazine FinanceAsia. The bank was recognised “for its resilience in India’s banking sector, which was roiled by unprecedented frauds and surging bad debt,” at the FinanceAsia Country Awards for Achievement 2018.
FinanceAsia’s annual Country Awards for Achievement 2018 recognises outperforming banks from countries in the Asia Pacific region. The magazine bestows the recognition on the banks after taking into consideration their performance, vision, and long-term strategy. In its editorial on the awards, FinanceAsia writes, “With a stable deposit base, HDFC delivered strong earnings, with consistently higher margins than its state-owned counterparts. Its net income rose 20.2% year on year to Rs174.9 billion at the end of March, while its net interest income, the difference between the interest it pays and earns, rose by 21% to Rs400.9 billion for the same period.”
It further added, “HDFC is well on track to gain a market capitalisation in excess of $100 billion by 2020, estimates Goldman Sachs, as it transforms into a digital-centric bank and enhances new areas of value creation such as credit cards. With a market-leading position, HDFC’s credit card is its one of the most profitable businesses, growing at a compound annual growth rate of 31% in the past four years. HDFC’s market capitalisation surpassed the Rs 5 trillion mark ($73 billion) in January, becoming the third Indian company and first lender to cross that milestone. A big concern in India’s banking system this year has been the growth in bad debt. HDFC’s operating performance was largely stable and showed no signs of significant pick up in bad loans. Its gross non-performing assets stood at 1.3% in March 2018, up slightly from 1.29% at the end of December and 1.05% in March 2017.”