The BusinessWorld magazine recently named “The Best Banks in India” for 2010.  The winners were selected based on a survey by conducted by the magazine with PricewaterhouseCoopers. Presenting the awards the Finance Minister pointed out:

The core capital (as measured by Tier I capital) in Indian banks, made up about 70 per cent of the total capital as of end-March 2010. In fact, Core CRAR ratio of scheduled commercial banks at end-March 2010 stood at 9.4 per cent and 10.1 per cent under Basel I and II frameworks, respectively, which is much higher than the Reserve Bank’s stipulation of 6 per cent under the Basel II framework. 

The Best Banks in various categories are:

• Best large bank: HDFC Bank (HDB)
• Best mid-size bank: Andhra Bank
• Best small bank: Karur Vysya Bank, South Indian Bank
• Fastest-growing large bank: Axis Bank
• Fastest-growing mid-size bank: Yes Bank
• Fastest-growing small bank: Development Bank of Singapore
• Most socially responsible bank: State Bank of India
• Most tech-friendly bank: ICICI Bank (IBN)

ICICI Bank Ltd (IBN) has a dividend yield of 1.02% and the P/E is over 27. HDFC Bank’s (HDB) P/E is over 34 and the dividend yield is 0.46%. Investors in both these banks were rewarded last year with great returns. According to S&P research, a $10K investment in HDFC would be worth over $32,000 compared with just $18,000 in ICICI with dividends reinvested.

To download the complete list of Inda’s best banks and fastest-growing banks 2010 in PDF format, click here and here.

Disclosure: No Positions