Sunday, April 25, 2010


The FY10 results of the top 3 private banks of India compare as below : (Figures in lakhs mostly)


Interest/Discount on Advances/Bills 1209275 798660 2036264
Income on Investments 397811 342831 781644
Interest on Balances With RBI ETC 8708 12000 71117
Others 7498 10414 126346
Interest Earned 1623292 1163905 3015371
Other Income 403407 396421 2944606
Total Income 2026699 1560326 5959977
Operating Profit  656388 520824 1173734
Provisions  and contingencies 214487 138919 455870
Tax Expense 138609 134091 173523
Net Profit (+)  for the period 303292 247814 484341
Consolidated Net Profit (+) 300365 247814 467029
Dividend (%) 120 120 120
Face Value (in Rs.) 10 10 10
Paid-up Equity Share Capital 45774 40517 111489
Reserves excluding Revaluation Reserves 2115815 1558377 5050348
Capital Adequacy Ratio 17.4 15.8 19.41
Basic EPS before Extraordinary items (in Rs.) 68.8 64.83 41.93
Diluted EPS before Extraordinary items (in Rs.) 68.1 63.38 41.72
Basic EPS after Extraordinary items (in Rs.) 68.8 64.83 41.93
Diluted EPS after Extraordinary items (in Rs.) 68.1 63.38 41.72
% of Gross/Net NPA 0.3 0.36 2.12
Return on Assets 1.5 1.85 1.15

COMMENTS : At current price of Rs.1954, the P/E ratio for HDFC Bank is 28.4. At current MP of Rs.979, the P/E for ICICI Bank  is 23.35. At current MP of Rs.1238.50, the P/E ratio for Axis bank is 19.1.  Performance-wise, HDFC Bank and Axis bank are by far, superior as on date to ICICI Bank. 

Regarding NPAs, the percentage of Gross to net NPAs for ICICI Banks are considerably high at 2.12 and needs to be reduced.
Return on assets is the highest for Axis Bank at 1.85 and lowest for ICICI Bank at 1.15. HDFc has an ROA of 1.5.

All 3 have excellent Reserves commensurate with their Equity. Thus based on their likely EPS of Next year, which may be around 80 for Axis and HDFC Banks, both of them could be Potential Bonus candidates next year.
It is in CAR that ICICI Bank has the highest ratio of 19.41. Others also have reasonable CAR and are raising further capital periodically in many ways.

P/E wise, HDFC already commands a good P/E of 28.4. ICICI Bank even with slightly inferior performance is at a P/E ratio of 23.35. 

Axis Bank is available at P/E of 19.1 and is presently looking cuite heap.  Its performances have been excellent for the last several quarters , and specially the q/e 31.03.2010 and it is expected to maintain similar growth in future as well.

There is therefore huge scope for GOOD APPRECIATION in case of AXIS BANK in the medium term with every quarterly result and in the short term as well based on latest result.While all 3 are good BUYs, AXIS BANK  appears to be the BEST BUY.

Note : Readers are welcome to offer suggestions,ideas and corrections,if any and these will be duly taken into account and incorporated.

1 comment:

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