S&P Global Report: Indian Banks Attracting Growing Global Investment

According to a survey by S&P Global Market Intelligence, strong credit growth, improving profitability, and stable assets are driving greater international investment in Indian banks

According to a survey from S&P Global Market Intelligence, international investors looking for greater returns are finding Indian banks to be more alluring. The outlook for these financial institutions has improved as a result of elements like strong lending growth, higher margins, and steady asset quality.

Foreign institutional investors (FIIs) have been growing their investments in Indian banks, S&P Global reports, with their overall holdings as of June 30 totaling $8.36 trillion, up from $7.71 trillion the previous year. This represents a substantial increase from $6.73 trillion in June 2020.

Concentration in Private-Sector Banks: According to the research, as of June 30, 93.5% of FII interests in Indian banks were concentrated in the country’s major private-sector banks. This concentration emphasises the appeal of these banks to global investors.

Top FII Investments: ICICI Bank Ltd., HDFC Bank Ltd., and Kotak Mahindra Bank Ltd. are the top three FII investment selections. These banks have been especially tempting to foreign investors, which has contributed to the increase in FII ownership.

Ascendancy of Private-Sector Banks: As of June, the market value of FII assets in Indian private-sector banks was worth $7.82 trillion, up from $7.29 trillion a year earlier and $6.37 trillion in June 2020. This pattern suggests that privately owned banks are becoming more popular.

Read also:-Founder of Google: Name and Image

State-Owned Banks on the Rise: State-owned banks have experienced expansion in addition to the enormous FII investment that has gone into private-sector banks. As of June, the market value of FII assets in Indian state-owned banks was $541 billion, up from $422 billion the previous month. This shows that public financial institutions are becoming more popular.

Leading Foreign Investors: Capital Research and Management Co., based in the United States, is at the top of the list of top foreign investors in Indian banks, followed by BlackRock Inc. and Singapore’s GIC Private Ltd. In Kotak Mahindra Bank, Capital Research and Management Co. has a sizeable position worth more than 6%. As of June, the company’s assets in Indian banks were worth a total of 542.90 billion rupees.