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India’s Government-Owned Banks Cheapest Amongst Asian Peers

Six Indian Banks Among The Cheapest in Asia



Pedestrians walk past vendors outside an Indian Overseas Bank branch (Photographer: Sanjit Das/Bloomberg)
Pedestrians walk past vendors outside an Indian Overseas Bank branch (Photographer: Sanjit Das/Bloomberg)


Price-to-Book Value Ratios of Top Ten Cheapest Banks among Emerging Asia Pacific countries
Price-to-Book Value Ratios of Top Ten Cheapest Banks among Emerging Asia Pacific countries

Six Indian government-owned banks are among the cheapest banks across emerging Asia Pacific countries.

We compared the price-to-book ratios of 234 banks in emerging Asia Pacific economies and that list included 40 Indian banks, both private and government-owned. Six Indian banks figure in the list of the bottom ten and all six are government-owned.

OBC, Bank of India, Allahabad Bank, United Bank of India, Indian Overseas Bank and Punjab & Sind Bank, all trade at a price to book ratio of less than 0.5, reflecting the stress in the Indian banking system and the need for additional capital.

Also, there are four Indian banks that featured in the list of the top ten most expensive banks in the region – they are Kotak Mahindra Bank, HDFC Bank, IndusInd Bank and YES Bank, none of which are government-owned.