Three private banks and nine NBFCs form part of Forbes super 50 list

New Delhi: Three banks and nine Non-banking Financial Companies have joined this year's list of 50 super Indian companies drawn by Forbes magazine. Six non-banking entities have made the grade for the first time.

The selection has been made on the basis of their performances last financial year. Three parameters have been used in finalisation of the list--- growth percentage in the year, return to shareholders and return on equity to the company.

Information Technology sector was kept out because most of the companies in this sector were in "doldrums" since mid- 16 due to impending presidential election in the US and cloud of uncertainty over the outsourcing market.

The list released on Friday has also kept out the companies which were facing trading suspension or were listed after April, 2014.

Eliminator was used for those which did not have market capitalisation of Rs 10,000 crore on March, 2017. No public undertaking qualified for this reason.

The magazine had selected 135 companies initially which met the conditions. After further evaluation in the light of the parameters set eighty five of them were delisted.

The listed companies belong to four sectors-- auto,financial services, customer products and pharma and chemicals.

In the financial service sector three private banks, besides NBFCs, qualified. These banks are HDFC, IndusInd and Yes Bank. The reason was stressed assets of the majority of banks due to debt-fed investment spree between 2009 and 2012. Under pressure from the then Congress government banks made large-scale lending to accelerate growth in some sectors including reality.

Three banks which have been selected had 200 basis point lower non-performing assets than others and did much better in other areas too.They had a much better growth rate . Returns to the company and share-holders were much higher as well.

The HDFC bank had done much better than the other two banks in terms of growth and return to share-holders. It had registered 20 per cent growth. The return on investment in share was 100 per cent. The rate of growth of IndusInd and Yes Bank was 11 and 18 per cent, respectively.

Among the private companies , Motilal Oswal Financial Services gave the best return to shareholders ( 699 per cent ). 3M India recorded 222 per cent returns. To mention some others, the return in case of Adani Ports and Special Economic Zone was 84 per cent.

The others which have joined the super league this year include Whorlpool India, TVS Motor Company, Piramal Enterprises, Maruti Suzuki India, Hindustan Zinc and Ashok Leyland.