PERFORMANCE

According to SCP concept , conduct of a firm determines performance of the firm. If a firm is spending more on advertising , it will result in more sales and hence more profits. We will study profits of all public , private and foreign sector banks by some profitability measures. Profit Interest earned RoA RoI Business per employee

PROFIT (in lakhs)

SBI & its associates
ICICI BANK HDFC BANK BANK OF BARODA PUNJAB NATIONAL BANK AXIS BANK CANARA BANK BANK OF INDIA IDBI BANK LTD. HONG KONG & SHANGHAI BANKING CORPORATION CITIBANK ALLAHABAD BANK UNION BANK OF INDIA INDIAN BANK STANDARD CHARTERED BANK CORPORATION BANK

1533360 646530 516710 500700 488420 424220 328270 267750 203160 198770 192200 186680 178710 174700 173580 150600

In terms of profits SBI leads the banking sector . ICICI Bank , HDFC Bank , Bank of Baroda and Punjab National Bank are next in terms of profits. Though SBI leads in terms of profit it has less CAGR( compound annual growth rate) compared to other banks. ICICI Bank & HDFC Bank have high CAGR. It means though their profits are less, but they are growing at faster rate. Interest Earned (2012)

Sbi & its associates

PUNJAB NATIONAL BANK ICICI BANK CANARA BANK BANK OF BARODA BANK OF INDIA HDFC BANK IDBI BANK LTD. AXIS BANK UNION BANK OF INDIA CENTRAL BANK OF INDIA INDIAN OVERSEAS BANK ORIENTAL BANK OF COMMERCE ALLAHABAD BANK SYNDICATE BANK

14348790 3642800 3354270 3085060 2967370 2848070 2728640 2336990 2199460 2114430 1914950 1789710 1581490 1552330 1526840

The list is very similar to list of Profit. RoA RoA is net profit upon Total Assets.
AB BANK OMAN INTERNATIONAL BANK MASHREQ BANK CREDIT AGRICOLE INDOSUEZ MIZUHO CORPORATE BANK BANK OF AMERICA BANK OF CEYLON JP MORGAN CHASE BANK DEUTSCHE BANK SHINHAN BANK BANK OF TOKYO-MITSUBISHIUFJ BANK OF NOVA SCOTIA SONALI BANK BANK OF BAHRAIN & KUWAIT KRUNG THAI BANK

7.05 6.09 5.76 4.92 4 3.62 3.08 2.9 2.58 2.52 2.26 2.24 2.23 2.14 2.12

As we can see top 15 banks in terms of RoA . All are foreign Banks Foreign Banks have better Return on Investment compared to Public and Private sector Banks.

2.5

1.5 Public Private 1 Foreign

0.5

0 1990 1995 2000 2005 2009 2012

As we can see from above trend analysis foreign Banks always had better RoA which shows that although their absolute profits might be less but their efficiency is better than private and foreign sector Banks. It can also be seen that Public Sector Banks has increase RoA considerably . Private sector Banks also has continuously increasing RoA. RoI Return on investments is interest earned on investment upon total investments.
MIZUHO CORPORATE BANK ANTWERP DIAMOND BANK BANK OF CEYLON SONALI BANK BNP PARIBAS CHINATRUST COMMERCIAL BANK SHINHAN BANK HONG KONG & SHANGHAI BANKING CORPORATION STATE BANK OF MAURITIUS CITIBANK BANK OF INDIA ING VYSYA BANK FEDERAL BANK

11.62 10.86 9.99 9.62 9.59 9.06 8.97 8.66 8.48 8.32 8.27 8.26 8.24

BANK OF TOKYO-MITSUBISHI-UFJ DBS BANK

8.24 8.24

This list is also dominated by foreign Banks. It shows foreign Banks are more efficient.

16 14 12 10 public 8 6 4 2 0 1992 1995 2000 2005 2009 2012 private foreign

Business Per Employee

BANK OF NOVA SCOTIA ANTWERP DIAMOND BANK JP MORGAN CHASE BANK BANK OF TOKYO-MITSUBISHI-UFJ BNP PARIBAS BANK OF AMERICA STATE BANK OF MAURITIUS DBS BANK CREDIT AGRICOLE INDOSUEZ SOCIETE GENERALE MIZUHO CORPORATE BANK SHINHAN BANK IDBI BANK LTD. UBS AG DEUTSCHE BANK CITIBANK

5430 3874 3571 3566 3519 3399 3358 3278 2664 2493 2488 2439 2387 2163 2156 1975

As can be seen from above table Business per employee also consist of mainly Foreign banks.

Foreign Banks have high Business per employee followed by public banks and at last are Private sector Banks.