HDFC bank from India the biggest gainer among top 500 financial brands

Indian banks have positioned itself amongst the world’s top 500 financial brands amidst the tight financial crisis. Around 19 Indian banks have positioned themselves especially at the time when global financial brands staggered due to tight financial crisis. In terms of brand value the top 500 banks lost around $218.1 billion (about Rs10.8 trillion) which means a 32 percent drop over the past year, while their market capitalization slumped by 51 percent to $3.9 trillion.

In comparison to the previous year's list around 209 banks have been out positioned as they became victim of the recession in U.S., Europe and Japan. From India HDFC Bank had turned out to be the biggest gainer. According to the Economic Times HDFC bank brand value rose by $243 million from 2007 to $611 million in 2008, and it positioned to 151 in the league table in 2008 from 236 in 2007. "Emerging market brands have significantly outperformed world brands in 2008. Many of the best known developed world banks have died in 2008. Some are walking dead awaiting a silver bullet before they finally go. Governments hold the gun," said David Haigh, CEO of Brand Finance. Axis Bank has positioned itself at the 267 position while Kotak Mahindra Bank occupied 278 positions. However, State Bank of India (SBI) has been ranked 69 in the latest survey; it has come down from 60 a year earlier, with a brand value of $1.44 billion, down from $2.852 billion. SBI slipped down because its market capitalization fell to $9.83 billion from $12 billion.

Besides them 13 new public sector banks from have made entry including Punjab National Bank, Bank of India, Canara Bank, Bank of Baroda, Union Bank of India, Indian Overseas Bank, Indian Bank, Power Finance Corporation, Oriental Bank of Commerce and Syndicate Bank. The list also includes the three associate banks of SBI viz. State Bank of Hyderabad, State Bank of Patiala and State Bank of Bikaner & Jaipur. While in the previous year, only six Indian banks could make in Brand Finance's list.

The rankings were provided by the Brand Finance along with The Banker magazine. The rankings were used through a discounted cash flow (DCF) technique to discount estimated future royalties, at an appropriate discount rate, to arrive at a net present value (NPV) of the trademark and associated intellectual property: the brand value.