Four newcomers join the top half of the Top 1000, down from six in 2005 and 11 in 2004. The top new entrant is India’s IDBI, which goes straight into the top third with a Tier 1 capital of $1684m and $18,595m-worth of assets. IDBI merged last year with its private banking arm, IDBI bank, following a general consolidation of the Indian banking sector. The country’s intensified economic activity has contributed to the bank’s stronger profile. India’s aggregate deposits grew by 19% in calendar 2005. India’s second newcomer, Karnataka Bank, squeezed into the Top 1000 at 982.
There were interesting results from the Nigerian banks, whose presence in the overall ranking has more than doubled from last year to nine. In July 2004, the Central Bank of Nigeria hiked banks’ minimum capital requirements to 25bn naira ($191.5m) from 2bn naira. By the December 31, 2005 deadline, 25 banks had met the target, in the process more than doubling the banking system’s capital base to $5.8bn.
Of the new additions, Zenith International Bank, with Tier 1 capital of $285m and ranked 857th, has proven particularly ambitious, recently going back to the market with a public offering that more than doubled its capital (though too late to be included in this year’s Top 1000). It underscores a keen appetite for bank shares in Nigeria. Zenith and others – including Top 1000 newcomers IBTC Chartered Bank, Spring Bank, First Inland Bank and Oceanic Bank – now face scrutiny to ensure capital is employed wisely.
