space
space

Get in Touch

spacer(91)-20-49072626
Thursday
May 28, 2015
subscribe
You are here article details
 

Top 5 Banks With Highest Capital Adequacy Ratio

By Saikat Mitra | 12/28/2012 9:00 PM Friday

Capital Adequacy Ratio (CAR) is defined as the ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss and complies with the statutory capital requirements. The CAR determines a bank's capacity to meet its time liabilities and other risks such as credit risk, operational risk, etc. In essence, a bank's capital is its ‘cushion’ for potential losses, and protects the bank's depositors and other lenders. Banking regulators in most countries define and monitor CAR levels to protect depositors, thereby maintaining confidence in the banking system.

Here, we present the top 5 banks in India that have the highest CAR levels.

Top On Capital Adequacy Ratio
Company NameCapital Adequacy Ratio (%)M-Cap (Rs/Cr)YTD Returns (%)
ICICI Bank 18.28 131458 63.32
YES Bank 17.51 16446 100.82
HDFC Bank 17 160626 59.02
Kotak Mahindra Bank 16.4 48263 54.03
Federal Bank 15.79 9238 59.1
Source: Dion Insight, Press Release

ICICI Bank: ICICI Bank and its subsidiaries provide banking and financial services to corporate and retail customers, with operations in 19 countries, including India. As of September 30, 2012, the bank has 2772 branches and 10006 ATMs in the country. It offers commercial banking, retail banking, project and corporate finance, working capital finance, insurance, venture capital and private equity, investment banking, broking and treasury products and services. The bank has witnessed an 18% Year-on-Year increase in advances to Rs 275076 crore (USD 52.0 billion) as of September 30, 2012.

The bank’s CAR stands at 18.28% as of September 30, 2012, which is in line with the RBI’s guidelines on Basel II norms. Its market capitalisation stands at Rs 131458 crore, and the stock has garnered returns of 63.32% on a YTD basis.

YES Bank: YES Bank provides commercial banking and other financial services to corporate and retail customers in India and internationally. Incorporated in 2003, the bank operates through 400 branches in India, 600 ATMs and 2 national operating centres. It witnessed a steady rise in its net interest income (NII) on account of growth in customer assets and relatively steady margins. The NIMs expanded sequentially to 2.9% in Q2FY13. The bank added 19 branches added during Q2FY13. The break-up of its total loan portfolio as on September 30, 2012 was as follows – Corporate & Institutional Banking (Large Corporates) – 67.4%, Commercial Banking (Mid-sized Corporates) – 17.9% & Retail Banking (including MSME) - 14.7%.

As of September 30, 2012, the bank’s CAR stands at 17.51%. The stock has yielded stupendous returns of 100.82% on a YTD basis. Its market capitalisation stands at Rs 16446 crore.

HDFC Bank: HDFC Bank, together with its subsidiaries, provides retail banking, wholesale banking, treasury and other financial services to individuals and business customers in India. As of September 30, 2012, the bank’s distribution network stood at 2620 branches and 10316 ATMs in 1454 cities as against 2150 branches and 6520 ATMs in 1141 cities as of September 30, 2011. The asset quality of the bank remained healthy, with its gross non-performing assets (NPAs) at 0.9% of the gross advances and net NPAs at 0.2% of the net advances as of September 30, 2012.

In accordance with the Basel II guidelines, the bank’s total CAR stood at 17% as at September 30, 2012, against the regulatory minimum of 9%. The market capitalisation stands at Rs 160626 crore, and the scrip has yielded a return of 59.02% on a YTD basis.

Kotak Mahindra Bank: Kotak Mahindra Bank offers banking and financial services to individuals and corporate clients in India. As of March 31, 2012, the company operates a network of 355 branches and 848 ATMs. It provides various lending products comprising commercial vehicle finance, personal loans, home loans and agriculture finance. The bank also has an international presence, with offices in London, New York, California, Dubai, Abu Dhabi, Bahrain, Mauritius and Singapore. The total assets and the net worth of the bank have grown at a CAGR of 39% and 32% in the last 9 years to stand at Rs 92349 crore and Rs 12901 crore respectively.

The bank has a CAR of 16.40% as of September 30, 2012, which is one of the highest in the Indian banking sector. Its market capitalisation stands at Rs 48263 crore. On a YTD basis, the stock has yielded returns of 54.03%.

Federal Bank: Incorporated in the year 1931, Federal Bank operates through a network of 743 branches and 805 ATMs. Formerly known as Travancore Federal Bank, the company changed its name to Federal Bank in March 1947. Federal Bank is the largest and most strongly established private sector bank in Kerala, a state that new private sector banks have found difficult to penetrate. There are early signs of traction in the new management’s transformation agenda, particularly in current account (CA) franchise growth.

The bank has a CAR of 15.79% as of September 30, 2012. This is also one of the highest in the Indian banking sector. The stock has yielded a return of 59.01% on a YTD basis, and the company’s market capitalisation stands at Rs 9238 crore.

Find More Articles on: DSIJ Others, Slide Shows, Markets, DSIJ Mindshare, Product, Large Cap, Research

Related Readings

Top 10 companies with Lowest Foreign Institutional Investors (FIIs) Holding in BSE 100 Companies

DSIJ.in Exclusive

LatestMost PopularMarket Action

Market Cautious Ahead Of F&O Expiry

The Indian markets witnessed some directionless movement in today’s trade. However, the benchmark indices staggered to recover from their lower ends. Banks and Capital Good stocks were positive on today’s trade and were up by 251 points and 116 points respectively. However Auto and IT saw a deep cut and closed down by 402 points and 205 points respectively. Mid-Caps and Small-Caps ended on a flat note. The Nifty close down by 4 points at 8334 while Sensex was up by 33 points in today’s trade and closed at 27564.

Index Trends And Stocks In Action May 27, 2015

The Indian equity market ended in red for second successive trading session. A lack of triggers from global market too contributed to the weakness. The nifty index has formed a bearish candlestick pattern on the daily chart; this suggests that the bear’s are gaining momentum.

Market Likely To Open In Red

Since SGX Nifty fell 61 points. Indian market is likely to open in red following other Asian markets. It will remain quite volatile, on account of May F&O expiring tomorrow. Aban Offshore , Abbott India , Adlabs Entertainment , Balmer Lawrie & Co , Bata India , Bayer Crop, FDC, Gail (India) , Godrej Industries , Indoco Remedies , JBF Industries , Jindal Steel & Power, Marathon Nextgen Realty, Excel Crop, Max India, Minda Corporation, Redington (India), Repro India, SJVN, Speciality Restaurants, Tata Chemicals, Tata Communications, Tree House Education, Trent and Zicom would be reporting fourth quarter earnings today.

Greenply Industries Posted Good Set Of Numbers In Q4

GIL demerged decorative business in November 2014 therefore results are not comparable. So, we are considering results for current business segments i.e. Plywood and Medium density fibre Board. Net sales of the company increased by 13.8  per cent to Rs 429 crore in Q4FY15 on yearly basis as its strategy to gain market share from unorganised segment. 

Eclerx Posted Disappointing Q4 Result

Recentally announced fourth quarter FY15 result, Total Income From Operations increased by 4 per cent compared to third quarter FY15 to Rs 251 crores from Rs 242 crores. USD revenue increased by 5 per cent .

Index Trends And Stocks In Action May 26, 2015

The Indian equity market witnessed profit booking across various sector. Barring the Oil & Gas index, all the major sectoral indices ended with losses.

Market Likely To Open Weak

SGX Nifty is marginally lower by 4.5 points. Indian market is likely to open weak. However going forward it remains quite volatile, on account of May F&O expiry in this week. ABG Shipyard, ABM Knowledgeware, BHEL, CCL Products (India), D B Realty, Dish Tv India, Dredging Corp, Esab India, Forbes & Co, Garware-Wall Ropes, Heritage Foods, IDBI Bank, IFCI, I G Petrochem, ISGEC Heavy Eng, Kolte-Patil, Plastiblends India, Reliance Power, Setco Automotive, Suven Life Sciences, Sunteck Realty, Shreyas Shipping, Tech Mahindra and Tata Motors would be reporting fourth quarter earnings today.

Bajaj Auto Posted Q4 Results

BAL's net sales volume reduced by 16.36 per cent to 782669 vehicles in Q4FY15 on yearly basis. Therefore revenue of the company decreased by 3.91 per cent and stood at Rs 4739 crore in Q4FY15 against Rs 4932 crore in Q4FY14. BAL's gross sales contributed mainly 98.71 per cent amount to Rs 4830 crore from automotive segment and remaining from investment segment in Q4FY15. 

Index Trends And Stocks In Action May 25, 2015

The Indian equity market which looked like will claim 8500 mark fell sharply from its day’s high on the back of selling pressure in select banking and metal stocks. SBI, which was leading the index at one moment, trimmed all its gains post announcement of its result.

Market Likely To Open Flat

SGX Nifty is marginally up by 1.5 points. Indian market is likely to open in flat. However going forward it remains quite volatile, on account of May F&O expiry in this week. Alphageo, Banco Products, Atlanta, BIL, Bombay dyeing, Eclerx, Canara Bank, Future retail, Igrashi motors, Inox leisure, Jyothy labs, Pricol, Wabag and Zandu realty would be reporting fourth quarter earnings today.

DSIJ Breakfast News

Start your day with DSIJ Breakfast Roundup, wind up with DSIJ Market Roundup. Register now to get the day’s market outlook, global cues, economic trends, top corporate news delivered straight to your inbox.

mail to

Start your day with DSIJ Breakfast Roundup, wind up with DSIJ Market Roundup. Register now to get the day’s market outlook, global cues, economic trends, top corporate news delivered straight to your inbox.

mail to  *
 *
 *
 *
 *
 *
Content

WE VALUE YOUR FEEDBACK

(* No Research/Stock Queries)
Name :
Email ID :
Cell Number :
Message :
Content