Dun & Bradstreet India is pleased to release the inaugural edition of its premium publication ‘India’s Top Banks’. The Indian banking industry is passing through an exciting growth phase. The surge in the real economy, which has grown at over 8% in the past three fiscals, has provided significant growth opportunities for the sector. The rising personal incomes of the population have provided banks numerous opportunities for product development and distribution innovations. Additionally, expansion of international integration to enable Indian banks to explore global markets and deregulation that has induced banks to explore new business opportunities have led to the increase in the scope and significance of the Indian banking industry. In India’s Top Banks 2007, we have attempted to collate an information resource covering a wide swathe of this important industry. We hope that this publication will serve as an authoritative and useful ready reference tool for business leaders globally.

India has a robust banking structure characterized by three major bank groups, viz., Public Sector Banks, Private Sector Banks and Foreign Banks, and a large network of branches. Further, prudent policies of regulation and supervision, global standards in banking practice, pursuit of efficiency in business and operations, coupled with a wide range of reforms in processes and procedures have enhanced the potential for sustained growth of Indian banking. The inherent robustness of the sector was witnessed when it posted a strong turnaround after 1993, to emerge as one of the most successful banking industries in the world.

Although prospects for the Indian banking industry remain optimistic, there are certain challenges that the industry will have to meet. Banks in Asia, particularly in China, have a phenomenal size when compared to Indian banks. Liberalisation is leading to creation of global banks through growth and consolidation. In this background, an important and urgent challenge for Indian banks is to create a size that would be effective in dealing with the global competition. Though progress has been made, technology solutions integrating the entire banking operations need to move at a faster pace. Banks, particularly those in the public sector, need to step up the use of infrastructure related to Real Time Gross Settlement and Electronic Fund Transfer Systems that could benefit their customers. There is scope for banks to increase the share of non-interest income, which will raise profitability and productivity. While opportunities exist, realizing them is a challenge that banks could meet with successful harmonization of technology, human resource skills and financial expertise.

The strength and growth prospects of the industry prompted us to launch the inaugural edition of this publication. India’s Top Banks 2007 provides an insight into the Indian banking industry with a focus on the performance and profiles of the banking institutions.

I hope you enjoy reading India’s Top Banks 2007 and look forward to receiving your suggestions.

Dr Manoj Vaish
President & CEO - India
Dun & Bradstreet