India's top banks 2008

India has a well-developed and distributed banking system with constituents of various size, ownership patterns, geographic locations, business focuses and thrust areas. While the 28 Public Sector Banks (PSB) account for a major part of the total business, the 23 Private Sector Banks, particularly the 8 New Private Sector Banks, are also making significant in roads into the market share, driving the intensity of competition in the domestic banking sector. Some of the 29 foreign banks that have operations in India play a prominent role in the personal and corporate banking segment, accounting for a major part of the off-balance sheet business growth. In the background of strong economic growth and a deepening financial sector, the opportunity available for Indian banking is enormous. A growing need for financial services in the cities and towns of India presents the banks with a unique opportunity to develop their personal and retail banking spectrum. Focusing on financial inclusion, which became a major policy imperative, will enable banks to penetrate the vast expanse of rural India, where an abundant opportunity for business continues to emerge. Basel II norms bring in the best practices in capital adequacy and risk management. As a result, significant progress in containing the level of non-performing assets would bring about a period of growth and consolidation for Indian banking. While prospects for growth are quite enormous, there is also scope for a continuous evaluation of risks and possible set backs. Global banking today is facing a crisis, brought about by the tribulations in sub-prime loans and structured products. Although innovation is an important aspect of finance, managing risks from sophisticated and riskier market segments should always be a priority for banks. India's Top Banks 2008 is a valuable publication for understanding the Indian banking industry, as also providing pertinent information on the leading institutions. I hope you enjoy reading this edition and look forward to receiving your suggestions.