CORPORATION BANK / SYNDICATE BANK - PSU

Both are mid-sized state owned banks. Their performance on most of the operating parameters is more than satisfactory. They provide a unique mix of consistency with growth. These banks may not feature among the fastest growing banks in India but the sheer consistency in their numbers makes them worthwhile for investors. For instance, in case of Syndicate Bank the loan growth remained in the range of 25-40% in the past three financial years. This shows that the bank managed to grow its loan book at higher than industry rates for three consecutive years. Similar was the case with Corporation Bank.

Their asset quality is evident from the fact that net non-performing assets form less than 1% of their net assets. However, Corporation Bank maintains an edge over Syndicate Bank, as the former has maintained an average return on assets (RoA) of 1.3% in last three financial years, while the latter clocked an average RoA of only 0.9%. On an average, Indian banks posted RoA of 1%. This shows that Corporation Bank has performed better than industry on all the counts.