State Bank of India (SBI) was the least efficient among its Asia-Pacific peers in the June quarter due to its high cost-to-income ratio and mark-to-market losses on its investment book, according to S&P Global Market Intelligence.
SBI had the highest cost-to-income ratio of 71.06 per cent, followed by Japan’s Mitsubishi UFJ Financial Group Inc, Resona Holdings Inc of Japan, and ICICI Bank of India. The ratio is a gauge of profitability: the lower the ratio, the more profitable the bank is. S&P Global Market Intelligence calculated cost-to-income ratio by dividing operating costs by operating income.
SBI’s cost-to-income ratio swelled 911