Thursday, June 21, 2018 Stamford, CT USA — Indian companies are moving away from their traditional practice of concentrating most of their banking business with their biggest lenders and, instead, seeking out and hiring banks with the best capabilities in cash management, FX and other critical functions.
A new report, Product/Platform Capabilities Come to the Fore in India, from Greenwich Associates says this trend is contributing to the rise of the country’s privately owned banks, which in 2018 surpassed public sector banks in their share of “core” banking relationships with large Indian companies.
Private banks have invested millions of dollars to create state-of-the art platforms, including attractive new digital capabilities in domestic and international cash management, FX, trade finance, and other essential corporate banking functions.
“These investments are starting to pay off,” says Greenwich Associates consultant Gaurav Arora. “As Indian corporate executives discover the quality of these platforms, growing numbers of companies that have traditionally relied on state-owned banks for credit are turning to “non-credit providers” for these products and services.”
2018 Greenwich Share and Quality Leaders – Indian Corporate Banking
Amid these profound changes, HDFC Bank and State Bank of India share the top spot as the 2018 Greenwich Share Leaders in Indian Large Corporate Banking, with estimated market penetration scores of 73%, followed by ICICI Bank at No. 3 with a score of 65%. The 2018 Greenwich Quality Leaders in Indian Large Corporate Banking are Citi and HDFC.
HDFC Bank has secured its position as the top bank on the list of 2018 Greenwich Share Leaders in Indian Middle Market Banking, with an estimated market penetration score of 54%. SBI is next with a market penetration of 48%, followed by ICICI Bank and Axis Bank, which are statistically tied at 36%–37%, and IndusInd at 28%. The 2018 Greenwich Quality Leaders in Indian Middle Market Banking Overall Relationship are Axis Bank, Citi and HDFC.
2018 Greenwich Excellence in Indian Corporate Banking
This year, Greenwich Associates debuts a new series of awards to recognize excellence in Indian corporate banking. The 2018 Greenwich Excellence Awards identify the top-ranked banks in a series of product and service categories. Winners are determined by receiving a statistically significant portion of “Excellent” ratings from their middle market and large corporate clients in India. Among the banks evaluated, Citi earned recognition in each category – Ease of Doing Business, Knowledge of Transaction Banking Needs, Knowledge of International Banking Needs, and Provision of Proactive Advice & Innovative Ideas.