INVESTOCRAFT 2013 Bank
Kotak Mahindra Bank Yes Bank Axis Bank Ltd HDFC Bank Ltd IndusInd Bank ICICI Bank Ltd Centurion Bank Bank of Punjab Global Trust Bank DCB Bank IDBI Bank Times Bank
The parent that Share price of received the the parent banking license before the announcement of banking license/ or listing price (Rs) Kotak Mahindra 17.2 Finance Ltd
The delisting Share price price / CAGR during existing Price the investment period
Returns given by benchmark during the same period
649
45%
26%
UTI Ltd
66 16
382 1,015
28% 36%
14% 22%
HDFC Ltd
33
653
18%
13%
IndusInd Bank
32
355
21%
17%
ICICI Ltd
149
61
-10%
-1%
Centurion Bank
16
41
12%
22%
Bank of Punjab
10
48.6
16%
16%
Global Trust Bank
10
0
-10%
5%
DCB Bank IDBI Ltd Times Bank
57 41 10
44 100 9.4
-4% 11 -11
11% 23% -11%
The performance of various Holding companies after the issuing of licence vis-à -vis BSE BANKEX The bill is an effort of the government to boost the banking sector and also achieve its goal of financial inclusion. But there are some fronts on which government need to be careful so that the bill does not reap any negative results. The increase in number of banks in the country will lead to increased competition in the banks, the impact of which could be there on the margins of the banks as they will reduce their rates to allure more customers. RBI will have to keep a strong check on these type of anti – competitive practices which was one of the reason for 2008 U.S financial crisis. Although fundamentals of Indian banking industry are strong but one thing that should be kept in mind is that bankers are made of same cloth. Another front where RBI has to be careful is in the selection of entities to which licenses will be issued. Many NBFCs in order to comply with clause of having 25% of branches in under banked areas open the branches in these area but do not put them to use and also to comply with the provision of having capital requirement of 5 billion will fulfill it through other arms of the corporate house
20