Report
EUR 146.34 For Business Accounts Only

Moody's: Indian banks' final push for NPL recognition will hurt profitability in the coming quarters

Moody's Investors Service says that the final stage of a multiyear initiative by India's central bank to push banks to recognize problem assets more accurately will reduce profitability for the sector in the near term, but produce benefits over the longer term. "While this push will ...
Underlyings
Axis Bank Limited

Axis Bank is a consumer and corporate bank engaged in operations in India. Co. maintains activities in both retail and corporate banking. Co. is also active as a mutual fund in the Indian capital market. Co., through its servicing and distribution network provides a complete range of services to its investors. As of March 31, 2011, Co. operated 1,390 branches and extension counters, as well as a network of approximately 6,270 ATMs. Co. also has branches in Singapore, Hong Kong, Shanghai, the UAE, and Sri Lanka. Co. provides services in consumer and corporate banking, NRIs, Retail loans, treasury services, Capital market services and Financial Advisory services.

Bank of Baroda Ltd.

Bank of Baroda is engaged in providing various services, such as personal banking, corporate banking, international banking, small and medium enterprise (SME) banking, rural banking, non-resident Indian (NRI) services and treasury services. The Bank's segments include Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations. The Bank offers personal banking services, such as deposits, loans, mobile banking and wealth management services; business banking services, such as Baroda Money Express, debit cards and collection services; corporate banking services, such as appraisal and merchant banking, and cash management and remittances; international banking services, such as export, import and trade finance, and correspondent banking; rural banking services, such as deposits, priority sector advances, financial inclusion and lockers, and treasury services, such as domestic and forex operations. The Bank operates a network of approximately 5,330 branches.

Bank of India

Bank of India provides various banking products and services in India and internationally. Co. operates through Treasury Operations, Wholesale Banking, and Retail Banking segments. Co. accepts various deposit products, such as saving, current, term, and tax saving deposits; and offers home loans, property loans, education loans, vehicle loans, personal loans, pensioner loans, holiday loans, loans for vocational studies, housing loans to NRIs/ PIOs, trade finance, as well as provides deposit schemes for NRIs. It also offers cash management services, project finance and syndication services, and bullion banking services; credit, debit, and prepaid cards; and other services.

Canara Bank

Canara is engaged in offering banking products and services throughout India. with "one stop banking". Co. provides insurance premium financing, commercial real estate financing arrangements, loan servicing, consumer finance loans, credit card lending and automobile financing. Other services include savings; deposits; health and life insurance; wealth advisory services; asset management and capital markets services. As of Mar 31 2013, Co. has 3,723 branches and 3,526 ATM's catering to more than 4.7 crore customers. At Mar 31 2013, Co. had total assets of INR4,123,426,086,000 and total deposits of INR3,558,559,913,000.

Central Bank of India

HDFC Bank Limited Sponsored ADR

ICICI Bank Limited Sponsored ADR

IDBI Bank Limited

Industrial Development Bank of India provides merchant banking, infrastructure finance, working capital, short term loans, direct finance and indirect finance. Co. provides for venture capital fund, rehabilitation assistance, forex services and debenture trusteeship. Other services offered by Co. include issue management, corporate advisory services, credit syndication, merchant banking, refinance of industrial loans through other DFIs/banks, bills finance, and loans for investments in shares and bonds of financial intermediaries.

Indian Overseas Bank

Indian Overseas Bank (the Bank) is engaged in the business of banking. The Bank's segments include Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations. Its operations consist of domestic deposits; domestic advances; foreign exchange operations; investments; micro, small and medium enterprises, including MUDRA Loan Scheme; retail banking, including Arogya Mahila Savings Bank Accounts; Mid Corporate department; agricultural credit portfolio; loans to small and marginal farmers; loans to non-corporate farmers, and microfinance. Its personal banking services include saving bank, current account, term deposit, retail loans, and mortgages and depository services. It offers merchant banking for issues, debenture trustee, dividend/interest warrant and others. It also offers Internet and mobile banking services. It has over 3,400 branches in India. It has over eight overseas branches with operations in Hong Kong, Bangkok, Sri Lanka, Singapore and South Korea.

Oriental Bank of Commerce Ltd.

Oriental Bank of Commerce is engaged in the provision of banking services including deposit accounts, loans, foreign exchange business operations, electronic fund transfers, import of bullion, merchant banking, brokerage services and other related banking services to its service areas in India.

Punjab National Bank

Punjab National Bank is a commercial banking group based in India. Co. is engaged in offering its customers personal, social, agricultural, international and corporate banking services. Co. specialized in offering commercial banking, retail banking, SME banking, rural banking, transaction banking, merchant banking, financial inclusion, credit syndication, treasury, internet & mobile banking services. Co. maintains over 6,300 branches and 7,900 ATMs across 764 cities. Co. has a banking subsidiary in the U.K., as well as branches in Hong Kong, Dubai and Kabul. Co. maintains representative offices in Almaty (Kazakhstan), Dubai, Shanghai (China), Oslo (Norway) and Sydney (Australia).

Provider
Moody's Investors Service
Moody's Investors Service

Moody's Investors Service is a leading provider of credit ratings, research, and risk analysis. Moody's commitment and expertise contributes to transparent and integrated financial markets, protecting the integrity of credit. Our ratings and analysis track debt covering more than:

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    76,000 structured finance obligations



Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Such independent credit ratings and research also contribute to efficiencies in fixed-income markets and other obligations, such as insurance policies and derivative transactions, by providing credible and independent assessments of credit risk.



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