Although the global financial crisis have not spared India, Indian banks still appear to be unaffected by the slowdown.
The global turmoil seem to affect Indian banks by a much smaller extend as compared to their peers in US. According to the second quarter reports of five major Indian and American banks, it was seen that the Indian banks profits have been much greater than their US peers.
The five Indian banks that were considered included SBI, ICICI Bank, PNB, HDFC Bank and Axis Bank while American Banks that have been left behind in the race are Citi, JPMorgan Chase, Bank of America, Wells Fargo and US Bancorp.
Even though global credit crisis has taken a substantial toll on the Indian shores, profits of Indian banks have increased by almost 77% in the second quarter of current fiscal.
Correspondingly, the American Bank -Citigroup noted a tremendous crash in its profits and even the remaining four among top five- Chase, Bank of America, Wells Fargo and US Bancorp also noted a fall of around 68% in the July-September quarter.
During the second quarter, Citigroup recorded a loss of USD 2.8 billion as compared to a profit of USD 2.2 billion in the same period a year ago. In contrast the Indian lender, ICICI Bank which was stuck in the rumours about its financial stability also showed a marginal rise of 1.1% to Rs 1,014 crore in its quarterly profit. Bank's operating profit grew by a large 42 %.
The losses of American banks that have been running into billion of dollars seem to worsen the global credit picture.