It's probably the price of being the largest that in the ongoing slump across global bourses, the market value lost by the world's biggest bank Citigroup, run by India-born Vikram Pandit, so far in 2008 is equal to the loss suffered by all the Indian banks together.
However, despite Citigroup's huge loss of close to 43 billion dollars, the US banking behemoth is still valued more than all the Indian banks taken together.
The market capitalization of Citigroup has dropped by 26.63 percent since the beginning of the
current calendar year, making it the worst performer among the top 30 blue-chips in the US that constitute the benchmark Dow Jones Industrial Average (DJIA) index in the American equity market.
The percentage loss in Citigroup's market cap is lower than that of Bombay Stock Exchange's banking sector index Bankex as well as a number of Indian banks in the same period.
However, owing to the larger market value of the US banking giant, the absolute loss is equivalent to the collective loss suffered by all the 18 banks present on the BSE Bankex index.
Citigroup, which has been among the worst affected from the US subprime crisis, has seen its market value getting eroded by close to 43 billion dollars since the beginning of the current year.
A similar loss has been recorded by the 18 Indian banks during the same period.
While Citigroup's market value has dropped from about 161 billion dollars at the end of 2007 to 118 billion dollars at present, that of the 18 Bankex companies has dropped from about Rs 5,35,960 crore (136 billion dollars) to close to Rs 3,64,522 crore (about 92 billion dollars).
In percentage terms, the total value of all the Indian banks under review has dropped by close to 32 percent, more than the loss seen by Citigroup.
Individually, only two Indian banks -- State Bank of India and Karnataka Bank -- have registered a smaller loss than Citigroup.
SBI and Karnataka Bank have lost about 19 percent and 11 percent each.
Kotak Mahindra Bank has lost the maximum 57.8 percent, while Yes Bank and Oriental Bank each have seen their market cap declining more than 40 percent.
Besides, those like ICICI Bank, Punjab National Bank, Bank of Baroda, Canara Bank, Centurion Bank of Punjab, Union Bank, Indian Overseas Bank, Federal Bank, Andhra Bank and Allahabad Bank have each lost more than 30 percent of their market values.
The losses have been below 30 percent for HDFC Bank, Axis Bank and Bank of India.
Source: DDNEWS
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