Indian banking, financial services have given high TSR: BCG

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Mumbai, Jun 5 (UNI) Indian banking and financial services sector has consistently given a high Total Shareholder Return (TSR) of 29 per cent and 59 per cent, respectively, in Q1 2008, despite of persisting global economic turmoil, according to a study.

Even though, the global banking sector average TSR plummeted by 93 per cent to 1.7 per cent, well below the 15.2 per cent average TSR of all industries in 2007, the Indian banking and non banking financial services (NBFS) gave consistent returns, beating the market across all time horizons, over last five years, a global management and consulting firm Boston Consulting Group (BCG) stated in a report on 'Value Creation in Banking in India', released here today.

Nevertheless, Banking TSRs in emerging markets fell by an average of about 13 per cent, while average TSR outside these markets fell by about 27 per cent. Emerging markets, in particular, avoided much of the turmoil and provided a counterweight to the weak performance of western and Japanese banks, BCG Partner and Director Saurab Tripathi said.

Mr Tripathi said even among Brazil, Russia, India and China, Indian banking sector has outshone in 2007, in value creation, despite of the heaviest correction in Q1 in 2008.

According to the report, Axis bank and Bank of India were the toppers among banks in consistent value creation over all the three horizons of one, three and five years during 2003-08. While, among NBFS -- Reliance Capital and Shriram Transport were the toppers.

However, different segments in banking and NBFS fared differently.


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