NEW
DELHI: In a year when the global financial landscape changed irretrievably, with
many big daddies of financial markets either going bust or getting bailed-out,
Indian banks surprisingly came out strongly in the latest Top 500 Global
Financial Brands 2009. Released on Sunday, February 01, by Brand Finance Plc, in
association with UK's The Banker magazine, the study--exclusively available to
ET in India--ranks the top 500 financial brands by value,
globally.
The Indian tally in the Global 500 has more than tripled to 19 in 2008, up from 6 in 2007. The biggest gainer from India is HDFC Bank, up $ 243-million in brand-value from 2007 to $ 611-million. The bank also saw a commendable rank improvement, from 236 (in 2007) to 151 (2008). Axis Bank moved up by a dizzy 112 rungs, to 267 position in 2008 and Kotak Mahindra Bank (ranked 278 in 2007) too improved its global ranking to 278.
Power Finance Corporation (rank 459; brand value $ 91-million) is the only non-bank, diversified financial services brand from India in the Global 500.
Interestingly, all 13 new entrants in the league table from the country are government run--Punjab National Bank, Bank of India, Canara Bank, Bank of Baroda, Union Bank of India, Indian Overseas Bank, Indian Bank, Power Finance Corporation, Oriental Bank of Commerce, Syndicate Bank and SBI associate banks in State Bank of Hyderabad, State Bank of Patiala and State Bank of Bikaner & Jaipur.
(##include msid=3157120,type=9 ##)
India is followed by financial services brands from South Korea and Turkey as the biggest risers in the league table highlighting the global trend where banks from emerging markets seem less exposed to the global financial crisis than those in developed markets. Speaking on the study, David Haigh, CEO, Brand Finance commented: "Emerging market brands have significantly outperformed world brands in 2008. Many of the best known developed world banks have died in 2008. Some are walking dead awaiting a silver bullet before they finally go. Governments hold the gun."
The latest Global Banking 500 list points to the magnitude of the blood bath in the global financial markets. There is a steep drop in the Top 500's overall brand value by a whopping $ 218.1-billion (down 32% from 2007) and $3.9 trillion (down 51%) shaved from their market capitalisation during 2008!
As many as 209 brands present in 2007 league table have dropped out of the new list. Notable exits include the bailed Fannie Mae and the bust Lehman Brothers whilst the salvaged Merrill Lynch and Wachovia tumbled in the ranking table by as many as 30 and 59 places respectively.
HSBC, though able to hold on to the numero uno position in the Global 500, saw its brand value erode by a around 28% to $25.4-billion in 2009. The beleaguered Citibank which was edged out from its No 2 rank in 2007 to No 7 in 2008, saw a massive $ 18-billion in brand value erosion last year.
Sticking to prudential banking norms, at a time when the Western financial system had thrown all lending caution to the winds, has helped Indian banks turn in impressive numbers in the Global 500 2009 table. So even while iconic brands on both sides of the pond, like Citi and Barclays, are being thrown government-sponsored multi-billion dollar financial lifelines, Indian banks continue to report healthy income and profit growth. For three months ending December 2008, 19 Indian banks/financial institution in the Global 500 2009 reported an average 35% growth in interest income and a higher 42% jump in net profit.
The Indian tally in the Global 500 has more than tripled to 19 in 2008, up from 6 in 2007. The biggest gainer from India is HDFC Bank, up $ 243-million in brand-value from 2007 to $ 611-million. The bank also saw a commendable rank improvement, from 236 (in 2007) to 151 (2008). Axis Bank moved up by a dizzy 112 rungs, to 267 position in 2008 and Kotak Mahindra Bank (ranked 278 in 2007) too improved its global ranking to 278.
Power Finance Corporation (rank 459; brand value $ 91-million) is the only non-bank, diversified financial services brand from India in the Global 500.
Interestingly, all 13 new entrants in the league table from the country are government run--Punjab National Bank, Bank of India, Canara Bank, Bank of Baroda, Union Bank of India, Indian Overseas Bank, Indian Bank, Power Finance Corporation, Oriental Bank of Commerce, Syndicate Bank and SBI associate banks in State Bank of Hyderabad, State Bank of Patiala and State Bank of Bikaner & Jaipur.
(##include msid=3157120,type=9 ##)
India is followed by financial services brands from South Korea and Turkey as the biggest risers in the league table highlighting the global trend where banks from emerging markets seem less exposed to the global financial crisis than those in developed markets. Speaking on the study, David Haigh, CEO, Brand Finance commented: "Emerging market brands have significantly outperformed world brands in 2008. Many of the best known developed world banks have died in 2008. Some are walking dead awaiting a silver bullet before they finally go. Governments hold the gun."
The latest Global Banking 500 list points to the magnitude of the blood bath in the global financial markets. There is a steep drop in the Top 500's overall brand value by a whopping $ 218.1-billion (down 32% from 2007) and $3.9 trillion (down 51%) shaved from their market capitalisation during 2008!
As many as 209 brands present in 2007 league table have dropped out of the new list. Notable exits include the bailed Fannie Mae and the bust Lehman Brothers whilst the salvaged Merrill Lynch and Wachovia tumbled in the ranking table by as many as 30 and 59 places respectively.
HSBC, though able to hold on to the numero uno position in the Global 500, saw its brand value erode by a around 28% to $25.4-billion in 2009. The beleaguered Citibank which was edged out from its No 2 rank in 2007 to No 7 in 2008, saw a massive $ 18-billion in brand value erosion last year.
Sticking to prudential banking norms, at a time when the Western financial system had thrown all lending caution to the winds, has helped Indian banks turn in impressive numbers in the Global 500 2009 table. So even while iconic brands on both sides of the pond, like Citi and Barclays, are being thrown government-sponsored multi-billion dollar financial lifelines, Indian banks continue to report healthy income and profit growth. For three months ending December 2008, 19 Indian banks/financial institution in the Global 500 2009 reported an average 35% growth in interest income and a higher 42% jump in net profit.
Brand Finance India discloses that none of the 19 Indian brands in the Top 500 Global list is a client of the company.
The star performance of the India financial services brands is, however, clouded by a note of caution. The study shows a massive, over 44% erosion in the cumulative value of 6 Indian financial brands that figured last year in the study--SBI, ICICI Bank, HDFC Bank, Axis, Kotak Mahindra Bank and IDBI Bank.
Their combined brand value stood at $ 3.5-billion in 2008, down from $ 6.3-billion in 2007. Says M Unni Krishnan, MD, Brand Finance India; "Biggest challenge for Indian brands will be customer centricity and service excellence. Indian companies like Jet Airways, Taj and Oberoi have shown the way and Indian financial services brands need to take a cue from them to make a quantum leap in competitiveness. Innovation and new products/services, like microfinance, micro-insurance and micro-housing, a $ 50-billion opportunity in India, may unlock value and lay the foundation to launch international expansion."
India's largest private sector bank, ICICI Bank saw highest erosion in its value by $ 1.7-billion followed by State Bank of India that lost $ 1.4-billion in brand value. The study also lists three of the associated banks of SBI.
However, if one were to add brand values of all 3 SBI associates with the parent, SBI's brand value jumps to $1.88-billion vis-??-vis $1.45-billion alone for the parent. ICICI Bank, SBI and IDBI Bank were three of the six India banks from last years list that saw a deterioration in their ranks.
While ICICI Bank stood No 151 in the new table, down from No 64 in 2007, SBI slid 9 rungs down to No 69. "(But) adding all (3) associated banks of SBI takes the bank to No 56 rank, just one below ANZ in the table," Unni puts it in perspective. Similarly, IDBI plunged 21 ranks to No 416.
