NewswireToday - /newswire/ -
Trichur, Kerala, India, 2009/07/31 - In the 10th “Financial Express” Awards for “India’s Best Banks” selected by the global management consultancy, "Ernest & Young", South Indian Bank (SIB) has emerged the winner in the traditional banks’ category.
In a glittering function organized at the Taj Mahal Palace Hotel, Mumbai, Mr. Pranab Mukherjee, Union Finance Minister presented the award to Dr. V.A. Joseph, MD&CEO of the South Indian Bank.The other winners of the foreign, new generation and public sector banks’ categories respectively are-Bank of America, Axis Bank and Indian Bank. The awards are presented every year with the intent to honour banks that have delivered exemplary performance on various parameters including strength, growth, innovation, efficiency and credit quality on the basis of Reserve Bank of India (RBI) data.
Mr. Mukherjee who was the chief guest of the most coveted banking awards function in the country – “India's Best Bank Awards” –in his speech, enumerating the reasons for the global financial turbulence, said, "There were four major reasons for the current dislocation and the first one was overconfidence among market participants that ample liquidity would continue to prevail, providing an outlet for new products and facilitating rapid growth. Second was lack of transparency and inadequate disclosures in high-risk, structured financial products. Thirdly, a series of misaligned incentives led to the watering down of credit quality standards and lastly, risk was passed on from one institution to another. Highly leveraged position of banks caused problems for stability in the system."
Congratulating the Indian banking system for being resilient in the face of the global economic turmoil, the Finance Minister said , "Cautious approach by the Reserve Bank of India and domestic banks prevented the economy from facing many problems".
Regarding selection of the winners, Mr. Viren Mehta, Director, Ernst & Young, India had earlier stated: “All banks, irrespective of their ownership ,compete in the same market place and are faced with the same situation”, he added, “we have therefore emphasized on the efficiency, quality and productivity of the institutions we evaluated who made the best of the opportunities that the tumultuous 2007-08 provided.”
Dr. V.A. Joseph, MD&CEO of the South Indian Bank commenting on the honour bagged by the Bank said, “This coveted award speaks strongly of the corporate metamorphosis the Bank has undergone and also our commitment to excellence even in these turbulent times when global financial institutions are in trouble. During the global financial crisis when there is public concern about the asset quality of banks, our Bank could bag many a honour for its asset quality, a few of them being – “the best bank in asset quality in the private sector” which includes both the new generation as well as the traditional banks from “Dun & Bradstreet” who had awarded South Indian Bank in their “Dun & Bradstreet Banking Awards2009”, ‘‘Best bank in the asset quality” in the “Business Today-KPMG Survey of Best Banks in India” in the private sector which includes the new generation and traditional banks” etc.
“The Bank also could bag a special award for excellence in banking technology from IDRBT which is the technical arm of the Reserve Bank of India. This award was presented to the Bank as a national -level recognition to the excellent contribution made in the area of information systems, security policies and practices.The bank has bagged this award by tightly competing with all categories of banks in India such as foreign Banks, private sector banks, public sector banks and co-operative banks”, MD& CEO of the South Indian Bank also added.