Five Banks Trading At Highest Discount To Its Book Value

The Indian markets have touched new heights in the recent past. Owing to the rise seen in the markets investor’s sentiment is improving to invest in various investment avenues. Sectors like IT, Pharmaceutical, FMCG have shown a good performance in past couple of quarters. However, the banking sector is still facing slowdown. The lower repaying capacity of borrowers due to the slowdown in economy has impacted the entire banking sector. The deterioration in asset quality of banks and higher provisioning made by banks has impacted their profitability. In this perspective, we are taking into consideration five banks whose share price is trading at highest discount to its book value per share.

To arrive at the table we have used the below mentioned filters:

• We have considered BSE 500 banks.
• We have considered banks with market cap more than Rs 500 crore.
• We have sorted the banks based on current market value at highest discount to its book value.

Punjab & Sind Bank : Punjab & Sind Bank is originated from Punjab and operates in four segments viz. Treasury Operations, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations. The bank has 1235 branches as of 31st December 2013 across all over India. Further, the bank has 534 ATMs as of 31st December 2013 across all over India. The bank has 9053 employees and as of 31st December 2013, the bank has deposits worth of Rs 83228 crore and advances worth of Rs 57219 as of 31st December 2013.

United Bank of India : United Bank of India was formed in 1950 with the amalgamation of four banks viz. Comilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Comilla Union Bank Ltd. (1922) and Hooghly Bank Ltd. (1932). Today the bank is 100 % CBS enabled with 2000 branches and offices and is having a total business of more than Rs 2 lakh crore. The bank has three full fledged Overseas Branches one each at Kolkata, New Delhi and Mumbai with fully equipped dealing room and SWIFT terminal. The bank has deposits worth of Rs 109891 crore and advances worth of Rs 78976 crore as of 31st December 2013. The bank has 3 crore customer base with 2000 ATM network across the India.

Allahabad Bank : The bank was founded by a group of Europeans in Allahabad in the year 1865. It is the oldest joint stock bank of the country. The bank operates in segments like treasury operations, corporate, retail and other banking services. Other services includes insurance, mutual fund, depository services etc. The bank has deposits of Rs 180395.74 crore and advances worth of Rs 131885.72 crore as on September 30, 2014. At present the bank has 2260 branches and 44 zonal offices.

Indian Overseas Bank (IOB) : The bank provides various banking operations like current account, saving account, credit facilities, treasury, corporate banking etc. As on Q3FY14, the bank's deposit stood at Rs 213319 crore and advances at Rs 174087 crore. The bank has 2341 ATMs spread over the country. The bank has over 3000 branches across country. IOB has global footprints through its global branches at places such as Singapore, Colombo, Bangkok, Hong Kong, Seoul and Bambalapitiya.

Andhra Bank : It’s a bank founded by the eminent freedom fighter and a multifaceted genius, Dr Bhogaraju Pattabhi Sitaramayya. Andhra bank operates in primarily in three field’s viz. corporate banking, treasury operations and retail banking. The bank presently serves a total of 20382 employees. It has 1968 branches across India, 2 outside India and has 1563 ATM. As on December 30, 2013, the bank has deposits of Rs 131700 crore and advances of Rs 102644 crore.