Citibank's sub-prime losses beat combined losses of Indian banking sector

The bigger they are, the harder they fall, may well apply to Citigroup, the world's largest bank, which has notching up losses this year equal to the collective losses suffered by all the Indian banks together.

However, in spite of this momentous setback of $43 billion, Citigroup still stands tall with a market capitalization exceeding that of all Indian banks, hammered though it may have been by as much as 26 per cent in recent months.

In terms of percentage points, Citi's losses add up to less than that suffered by the BSE banking sector index Bankex, but owing to its mammoth size, in absolute terms, Citi's losses are greater. This has resulted in its scrip being the worst performer on the 30-stock Dow Jones Industrial Average.

While Citigroup's market value has dropped from about $161 billion at end-2007 to $118 billion now, that of the 18 Bankex entities has dropped from about Rs535,960 crore ($136 billion) to around Rs364522 crores (approximatelyt$92 billion).

Only two banks, State Bank of India and Karnataka Bank, have suffered less in terms of percentage drop in their share values. Even though the 18 banks in the Bankex have on the average lost about 32 per cent, SBI and Karnataka Bank have managed to stay relatively afloat by losing 19 per cent and 11 per cent respectively.

Kotak Mahindra Bank has lost the maximum at 57.8 per cent, while Yes Bank and Oriental Bank each have seen their market caps declining by more than 40 per cent. Most other banks with the exception of HDFC Bank, Axis Bank and Bank of India have lost more than 30 per cent, with these three notching up losses just below this figure.