Awards for Excellence 2008: India

Housing Development Finance Corporation (HDFC) of India often plays second fiddle to its larger rival, ICICI, but over the past year the Mumbai-listed institution has come of age. In acquiring smaller domestic rival Centurion Bank of Punjab for $2.23 billion in February 2008, HDFC stole a march on ICICI, kickstarting a hoped-for and much-needed period of consolidation in India’s cluttered and largely underperforming banking sector. Investors clearly like the lender. HDFC’s Mumbai-listed common stock rose by 2% in the year to end-May 2008 – a solid performance in the midst of a troubled Indian marketplace. By contrast, ICICI’s Mumbai stock sank 17% over the same period. HDFC also posted consolidated net profit up 56% to Rs21.3 billion ($632 million); ICICI’s net profit rose by a rather more meagre 34%. This award is not simply about contrasts, however. HDFC has earned its success through continued, strong, steady, hard work, say analysts and bankers.