Bankable banks?

IPO REVIEW

Other Income191.36139.01-27.36 Operating profit393.55428.318.83 Cost to income ratio (%)49.0045.00

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PAT59.10229.10287.65 NPM (%) 7.7029.40

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EPS1.284.98

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P/Adj BV for FY06E

1.6 times

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 The valuation is attractive, since its peers like Bank of India, Canara Bank and Indian Overseas bank are quoting at 1.3 times, 1.3 times and 1.4 times respectively for the same period. This is despite the fact that expected growth is similar for all of them.  Subsequent to the issue, the bank's capital adequacy ratio (CAR) would improve from the current 10.9 per cent to over 11 per cent. The government holding would come down from 60.85 per cent to 55.43 per cent post issue. 
 

OTHERS PARAMETERS
(%)	FY05	9 months ended FY06
Capital Adequacy ratio	12.09	10.90
Share of CASA	32.70	32.32
Credit-Deposit Ratio	64.86	70.08
Share of retail and SMEs	29.90	34.51
Gross (Net) NPAs	5.01(2.64)	3.8(1.2)
Share of investments in total assets	31.70	30.55

 According to Manish Joshi, banking analyst, Sushil Stockbrokers,