Ranking of Indian Banks

April 2010

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Performance of a bank is judged based on a number of parameters including growth, quality of assets, size etc. Consequently, we have ranked a list of banks with respect to the following parameters assigning appropriate weight to each of the parameter. Credit growth Net Interest Margin Net NPA Efficiency Ratio Fees Income to Total Income Return on Asset Balance Sheet Size

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Performance based ranking of Indian banks

Banks (9m 2010)
List of Banks Score CMP
(INR)

P/E

P/BV

Mcap
(INR crores)

Yes Bank Axis Bank PNB HDFC Bank Andhra Bank Allahabad Bank Indian Bank Corporation Bank Federal Bank Bank of Baroda South Indian Bank Jammu and Kashmir Bank Ltd SBI Canara Bank IndusInd Bank Union Bank of India Oriental Bank of Commerece State Bank of Travancore ICICI Bank of India IDBI Bank UCO Bank ING Vysya Bank Vijaya Bank DCB
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7.51 5.44 5.12 5.11 5.08 5.03 5.01 4.99 4.91 4.63 4.62 4.56 4.49 4.48 4.41 4.24 4.00 3.74 3.61 3.59 3.14 3.09 2.96 2.54 1.48

251 1,192 1,003 1,965 101 147 171 458 264 637 171 662 2,094 411 180 291 318 596 953 326 116 57 275 48 33

20.44 27.49 10.26 41.38 8.13 8.50 6.17 7.55 9.89 10.02 7.88 8.11 10.69 8.26 24.43 7.54 7.86 4.52 31.55 5.68 11.65 4.44 18.07 5.41 NA

5.02 3.56 2.25 4.81 1.34 1.09 1.31 1.33 1.05 1.76 1.51 1.22 1.84 1.67 3.88 2.08 1.23 1.32 2.27 1.43 1.11 1.12 1.64 1.34 1.05

8,539 48,282 31,629 89,944 4,886 6,555 7,345 6,566 4,519 23,365 1,935 3,210 132,972 16,853 7,400 14,676 7,962 2,980 106,232 17,123 8,405 3,142 3,301 2,068 650
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Performance based ranking of Indian bank Private Banks

List of Banks

Score

CMP
(INR)

P/E

P/BV

Mcap
(INR crores)

Yes Bank Axis Bank HDFC Bank Federal Bank South Indian Bank Jammu and Kashmir Bank Ltd IndusInd Bank ICICI ING Vysya Bank DCB
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7.51 5.44 5.11 4.91 4.62 4.56 4.41 3.61 2.96 1.48

251 1,192 1,965 264 171 662 180 953 275 33

20.44 27.49 41.38 9.89 7.88 8.11 24.43 31.55 18.07 NA

5.02 3.56 4.81 1.05 1.51 1.22 3.88 2.27 1.64 1.05

8,539 48,282 89,944 4,519 1,935 3,210 7,400 106,232 3,301 650

Performance based ranking of Indian banks Public Banks

List of Banks Score CMP
(INR)

P/E

P/BV

Mcap
(INR crores)

PNB Andhra Bank Allahabad Bank Indian Bank Corporation Bank Bank of Baroda SBI Canara Bank Union Bank of India Oriental Bank of Commerece State Bank of Travancore Bank of India IDBI Bank UCO Bank Vijaya Bank

5.12 5.08 5.03 5.01 4.99 4.63 4.49 4.48 4.24 4.00 3.74 3.59 3.14 3.09 2.54

1,003 101 147 171 458 637 2,094 411 291 318 596 326 116 57 48

10.26 8.13 8.50 6.17 7.55 10.02 10.69 8.26 7.54 7.86 4.52 5.68 11.65 4.44 5.41

2.25 1.34 1.09 1.31 1.33 1.76 1.84 1.67 2.08 1.23 1.32 1.43 1.11 1.12 1.34

31,629 4,886 6,555 7,345 6,566 23,365 132,972 16,853 14,676 7,962 2,980 17,123 8,405 3,142 2,068

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Performance of Indian Banks

Based on above mentioned seven parameters, we have identified banks trading at higher multiple backed by high score based on the first nine months performance of FY 2010;

Axis Bank has the highest score among big private players which is been accounted in terms of higher multiple assigned to the stock Yes Bank is trading at a higher multiple backed by its highest score in the industry HDFC Bank is trading at the highest P/B multiple. This is justified on account of the banks performance as well as unlocked value in its subsidiaries which operate into various financial business PNB being the highest scorer among the public sector banks enjoys a higher P/B multiple which looks adequately fair based on its performance

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Performance of Indian Banks

With respect to the seven parameters, we have identified banks trading at lower multiple on account of lower score based on the first nine months performance of FY 2010;

Development Credit Bank has the lowest score among the peers. Consequently, it is been trading at a lower P/B multiple which seems justified Among public banks, IDBI, UCO Bank, and Oriental Bank of Commerce are trading at a lower multiple which is justified by their lower performance scores compared to peers

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Performance of Indian Banks

Here with, we have identified banks trading at higher multiple in spite of lower score or vice versa based on the first nine months performance of FY 2010;

Indian Bank is valued at a lower multiple in spite of a higher score among the peers. Allahabad Bank is valued at a very low multiple among public banks. However, it has a good score which places it on third position among the public banks. Federal Bank is valued at a lower multiple compared to other private players being on fourth position among the private players in the list IndusInd Bank and ING Vysya Bank are valued at a higher multiple in spite of having a low score among peers

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Thank You

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