Banks Trading At Highest Premium To Its Book Value

In our previous article we had taken into consideration, the banks which are trading at higher discounts to its book value. So, here we are listing the banks, trading at higher premium to its book value. Interestingly all mentioned banks expect HDFC Bank, whose net NPA remained constant on sequential basis, showed a considerable rise in their net NPAs on sequential basis.

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 premium to its book value.

ING Vysya Bank (IVBL) : The bank, with over 80 years of experience in banking sector provides a broad range of services. It provides retail, private and wholesale services to its customers. IVBL serves over 82,000 employees in its 547 branches across more than 40 countries globally. The amount of net non performing advances for Q3FY14 stands at Rs 73.13 crore. As on September 30, 2013, the bank has deposits of Rs 40030.09 crore, and its advances stands at Rs 32856.43 crore.

YES Bank : Yes Bank is the fourth largest private sector bank in India. It offers a range of services including corporate finance, retail banking, treasury operations, wealth management etc. The bank has a network of 500 branches spread across 350 Indian cities, with 1050 ATMs and 2 National operating centres (one in Mumbai and other in Gurgaon). For the December quarter FY14, the bank's net NPA stands at Rs 4231 crore on absolute basis and 0.08% as a percentage of advances. The deposits of bank as on September 30, 2013 is Rs 6757507 crore and its advances for the similar period is Rs 4771718 crore.

IndusInd Bank : The name of the bank has been derived from Indus Valley civilization culture. The bank offers services which includes corporate banking, retail banking, treasury operations and other banking operations. It operates through its 573 branches and 1055 ATMs across various geographical locations. Deposits and advances of the bank as on September 30, 2013 are Rs 53057.73 crore and Rs 48968.06 crore respectively. On absolute basis, the bank’s net NPA stands at Rs 164.94 crore and as a percentage of advances net NPA stands at 0.31%.

Kotak Mahindra Bank : Kotak Mahindra group established in the year 1985, is one of the country's leading financial services conglomerate. It offers a wide range of financial services through its segments viz., treasury operations, retail and wholesale banking, through its more than 502 branches and 1004 ATMs. The net NPA of the bank stands at Rs 486.92 crore and percentage of net NPA to net advances is 0.96% for Q3FY14. The bank has deposits of Rs 50682.6 crore and advances of Rs 68225.73 crore as on September 30, 2013.

HDFC Bank : The bank incorporated in the year 1994 and commenced its commercial banking operations in the year 1995. The bank provides banking services like, wholesale banking, retail banking, treasury operations etc. The total number of branches and ATMs as on Q3FY14, is 3336 and 11473 respectively. HDFC bank has deposits and advances of Rs 349215.16 crore and Rs 296741.61 crore as on December 31, 2013. It’s net NPAs to net advances stands at 0.3%, remaining constant on sequential basis.