It was a night when bankers shone. For it was the Businessworld Best Bank Awards — an occasion to applaud the best in the Indian banking sector. This year the awards were more crucial as the sector had not only survived the slowdown, but thrived under difficult conditions. Finance Minister Pranab Mukherjee, who was the chief guest, congratulated the winners, and said there were new milestones to strive for: “I am happy that India’s banking sector has escaped the recession. But we should not rest on our laurels, we should continue to create an efficient banking network and drive growth.” He also thanked the Reserve Bank of India (RBI) and the banking system for standing strong during the recession and helping the country achieve a 7.9 per cent growth in the past quarter. “Private consumption is weak at the moment. For the economy to grow, banks should lend more to corporates and individuals,” he said.

Earlier, ABP Group’s Editor-in-Chief Aveek Sarkar invited the finance minister to the stage for his inaugural speech. The event was graced by some of the top names in the industry such as State Bank of India chairman O.P. Bhatt, Axis Bank CEO and managing director Shikha Sharma, Bank of Baroda chairman and managing director M.D. Mallya, Union Bank of India chairman and managing director M.V. Nair, Suzlon chairman and managing director Tulsi R. Tanti, Jefferies India managing director Sidharth Punshi and Videocon Industries chairman Venugopal Dhoot, to name a few. The bankers were seen discussing “crazy credit” because loans were so expensive last year and the difficulties that most banks faced raising capital.

The finance minister also suggested that banks should disburse more credit to keep corporate investments flowing and provide services through a variety of savings, insurance and remittance products. His advice is significant as it comes at a time when the central bank is talking about unwinding the stimulus measures. “There should also be a lower incidence of taxes for corporates and individuals alike for the economy to grow.”

Another point the minister stressed on was financial inclusion. “We need to make banking reach a wider network of people in the country,” he said. Signing off on a positive note, he later said that the economic indicators were very good and assured that the Indian economy will grow close to 8 per cent by 31 March 2010.

Among the winners, the State Bank of India took home two awards including the best large bank and most socially-responsible bank. Bhatt was adjudged the banker of the year for changing SBI’s style of functioning dramatically. Other awardees were, Axis Bank (fastest-growing large bank), Indian Bank (fastest-growing mid-size bank), Yes Bank (fastest-growing small bank), Corporation Bank (best mid-size bank), Deutsche Bank (best small bank) and HDFC Bank (most tech-friendly bank).

A special award was given for lifetime achievement to former RBi governor M. Narasimham for his contribution to India’s financial sector. The Businessworld-PricewaterhouseCoopers Best Banks survey was validated by a jury comprising J.P. Morgan (India) CEO Kalpana Morparia, IndiaVenture Advisors chairman A.K. Purwar, former Canara Bank chairman M.B.N. Rao and Edelweiss chairman Rashesh Shah.

The presenting sponsor for the awards was TCS Financial Solutions and exchange partner was MCX Stock Exchange. Associate sponsors were CHIVAS, Mumbai Cricket Association and Bloomberg UTV.

Click here to view slide show of Best Banks Awards

(This story was published in Businessworld Issue Dated 04-01-2010)