Indian Banking Sector – Some Uncommon Numbers & Ratios

Disclaimer: The Blog on Indian Banking Sector is not a recommendation to buy / hold / sell any stock. The published post is for information purpose only. The intention to share write ups on this blog is to create a repository of ideas so that investors can have a look at various frameworks & approaches. Please read the detailed disclaimer at the bottom of the post.

Indian Banking Sector – Some Uncommon Figures & Ratios

This blog is in continuation to our blog series on Banking sector, where we have tried to explain the Banking sector as whole from scratch (explaining the terms and jargons) and have deep dived into how Indian Banking sector has evolved over decades. In the current blog we focus on the ‘not-so-trivial’ data points of banks, which are commonly not looked at, but are worth looking at!

Note: All the data is as of 31st March 2018 / FY 18, unless specified.

Fee Income Of A Bank

Fee Income As % Of Total Income

We can see how all the PSU Banks have had weaker Fee Income as share of Total Income compared to their private peers.

Fee Income As % Of Total Income

Fee Income per Employee

Banking Sector being a service industry, productivity of the employee is a key variable to track. We can see how productivity of PSU bank employees have been. However, there are few private banks as well who have lower Fee Income per Employee as of FY18.

Fee Income per Employee

Bancassurance Of A Bank

Bancassurance is selling of life assurance and other insurance products and services by banks. This is another higher yield product for banks. Higher the better!

Bancassurance Of A Bank

Retail Advances 

We can see how some of the most valued banks have better performance in terms of Retail Advances.

Retail Advances Indian Banks

Retail Advances per Employee (Rs cr)

Retail Advances per Employee (Rs cr)


Better CASA numbers by top private banks has helped them achieve lower cost of funds and hence maintain better NIMs.

CASA Per Branch - Indian Banks

Net Interest Income Per Employee

Net Interest Income Per Employee - Indian Banks

Operating Expense per Branch

We can see how the top performing private banks have higher operating expenses per branch! These banks are continuously investing to sustain their growth rates.

Operating Expense per Branch - Indian Banks

Employees per Branch

We can also see how the top performing private banks have higher employees per branch! i.e. higher sales force, customer service executives etc. Top private banks have double employees per branch compared to their PSU peers. Banking is the only sector where the PSU companies have lesser employees than their private counterparts!

Employees per Branch - Indian Branch

Leverage (Advances/Net Worth)

The following chart describes how many times its Net Worth is the respective bank’s Advances.

Leverage (Advances Net Worth) - Indian Banks

Market Cap / Advances

The following chart describes how many times is the market valuing the bank’s loan book.

Market Cap - Advances - Indian Banks

Pre-Provisioning ROA

It is basically the ROA of a bank assuming zero Provisioning for the bank.

Pre-Provisioning ROA = [Report PAT + (Provisioning)*(1 – tax)] / [Total Assets]

Pre-Provisioning-ROA - Indian Banks

Debit & Credit Card

The higher the number of credit and debit cards, better is the bank’s fee income. HDFC Bank has more credit cards than entire PSU banking sector combined!

Bank No Of Debit Cards Issued (May-18) No Of Credit Cards Issued (May-18)
State Bank of India 28.3 cr 65 lacs
Bank of Baroda 5.3 cr 1.3 lacs
Punjab National Bank 6.4 cr 3.3 lacs
Canara Bank 4.5 cr 2.2 lacs
Central Bank Of India 3.0 cr 96,000
Indian Bank 1.8 cr 85,000
Bank Of India 5.4 cr 2.1 lacs
Union Bank Of India 2.2 cr 2.2 lacs
Vijaya Bank 65.6 lacs 62,000
HDFC Bank 2.5 cr 1.1 cr
Kotak Mahindra Bank 0.9 cr 15.5 lacs
ICICI Bank 4.3 cr 52 lacs
Axis Bank 2.3 cr 46 lacs
IndusInd Bank 0.4 cr 8.2 lacs
Yes Bank 0.2 cr 3 lacs
Bandhan Bank 1.1 cr NA
Federal Bank 0.7 cr NA
Karur Vysya Bank 0.4 cr NA
City Union Bank 18.1 lacs 5,500

Exposure Towards Various Sectors

Below we have shown credit exposure of each bank towards different sectors, wherever the data was available.

Home Loans

Interestingly, almost ~25% of ICICI Bank’s book comprises of home loans.

Exposure towards Home Loans - Indian Banks

Auto Loans

HDFC Bank is most aggressive when it comes to Auto Loans, with over 10% of its book comprising of Auto Loans. We can see, the top private banks have higher portion of exposure towards auto loans compared to their PSU peers.

Exposure towards Auto Loans - Indian Banks

Power Sector

Exposure to Power-Sector - Indian Banks

Iron & Steel Sector

Exposure towards Iron and Steel Sector - Indian Banks

Agriculture Sector

Exposure towards Agriculture Sector - Inidan Banks

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