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The State Bank of India and ICICI Bank, at the 61st and 66th positions, respectively, are the only Indian banks that figure in the global 100 most valuable banking brands list for 2006 published by the UK-based brand valuation agency Brand Finance and The Banker magazine.
"ICICI Bank remains one of the most potential Indian brands to go global," says Unni Krishnan, CEO - India, Brand Finance.
The report is based on the analysis of the world's 500 largest banks by market capitalisation. The top-100 table shows the most valuable banking brands ranked by financial value in dollars. Citi (Citigroup) followed by HSBC bagged the top two spots with brand values of $35.1 billion and $33.4 billion, respectively.
According to a statement by Brand Finance, 'The two brands are good examples of how fragmented and undifferentiated banks have become well-liked and most valuable brands internationally.'
However, only four of the top 100 bank brands, namely HSBC, Citi (Citigroup), Bank of America and American Express, receive triple-A brand ratings (extremely strong brand status). While SBI received a 'AA-' rating, ICICI Bank received a 'AA' rating on par with other international financial brands such as Capital One.
Credit card oriented bank brands such as American Express and Capital One display the highest proportion of brand value to market capitalisation.
"This is because emotional or image-related factors are significant drivers of demand in this sector as customers look for privilege and credibility," said Krishnan.
American Express and Capital One are ranked fourth ($18.1 million) and 25th ($5.7 billion), respectively, despite their relatively smaller market capital in comparison to other banks included in the index.
For instance, American Express has a market capital of $63.89 billion compared with UBS which is at number six with a market capital of ($103.52 billion), but a brand value of only $15.1 billion.
Investment and wholesale banks display surprisingly large brand values.
'This is because banks of this type do not need large retail networks, infrastructure and tangible assets. Much of their value is intangible and the two main assets are key personnel knowhow and the corporate brand itself', says the report.
As many as 11 of the 20 most valuable bank brands are headquartered in the US. Banks that are headquartered in large and rapidly emerging markets such as Brazil and India benefit from increasing business banking activity and the increasing demand for consumer banking services.
The examples are India's State Bank of India ($3.08 billion) and ICICI Bank along with the Brazilian Banco do Brasil ($ 2.3 billion). However, there are no Chinese bank brands in the Global 100 Banking Brands Index.
