8/8/2019 Banks Prsntn

1/24

A C O M P A R A T I V E S T U D Y

B Y

S A U R A V D A T T A

&

D E B J I T C H A K R A B A R T Y

Leading 3 Banks in India & US

8/8/2019 Banks Prsntn

2/24

The Banks Studied

8/8/2019 Banks Prsntn

3/24

Notes to the presentation

y Indian BanksTotal assets ason 31st March 2010

Market Capitalization as on 7th December 2010

y US BanksTotal assets ason 31st December 2009

Market Capitalization as on 8th December 2010

Exchange Rate - Rs 44.72/$ as on 7th December 2010

Paired Comparisons betweens same ranked counterparts basedon asset size.

8/8/2019 Banks Prsntn

4/24

The US Banks

Bankof

America

WellsFargoCitibank

8/8/2019 Banks Prsntn

5/24

BANK OF AMERICA

The largest bankholding company in the United States

by assets, BankofAmerica serves clients in morethan 150 countries and has a relationship with 99%ofthe U.S. Fortune 500 companies and 83% oftheFortune Global 500. Acquisition ofMerrill Lynch

made BankofAmerica the world's largest wealthmanager.

8/8/2019 Banks Prsntn

6/24

CITIBANK

Founded in 1812 as the City BankofNew

York, Citibank is a major international bank & is theconsumer banking arm offinancial services giant

Citigroup, the third largest bankholding company inthe United States by domestic deposits.

8/8/2019 Banks Prsntn

7/24

WELLS FARGO

A result ofan acquisition ofCalifornia-based Wells

Fargo & Company by Minneapolis-based NorwestCorporation in 1998, Wells Fargo is one ofthe Big

Four banks ofthe United States, having 6,650 retail"stores", 12,260 ATM, 276,000 employees & over 48

million customers.

8/8/2019 Banks Prsntn

8/24

Ranked by Asset Size

1 BankofAmerica $ 2223.29 billion

2 Citibank $ 1856.64 billion

3 Wells Fargo $ 1243.64 billion

8/8/2019 Banks Prsntn

9/24

Market Capitalization & P/E Ratio

Banks Market Capitalization P/E Ratio

BankofAmerica $ 116.29 billion 0

Citibank $ 134.21 billion 85.56

Wells Fargo $ 151.16 billion 16.85

8/8/2019 Banks Prsntn

10/24

A graphical view

Assets ( in $ billion)

Market Cap (in $ billion)0

50010001500

20002500

BankofAmerica CitiBank Wells

Fargo

BankofAmerica CitiBank Wells Fargo

Assets ( in $ billion) 2223.29 1856.64 1243.64

Market Cap (in $ billion) 116.29 134.21 151.16

8/8/2019 Banks Prsntn

11/24

The Indian Banks

State Bankof

India

ICICIBank

HDFCBank

8/8/2019 Banks Prsntn

12/24

STATE BANK OF INDIA

The largest state-owned banking and financial services

company in India, by almost every parameter likerevenues, profits, assets, market capitalization etc.the State BankofIndia traces its ancestry to British

India, through the Imperial BankofIndia, to thefounding in 1806 ofthe BankofCalcutta, making it

the oldest commercial bank in the IndianSubcontinent, having the largest banking branch

network in India.

8/8/2019 Banks Prsntn

13/24

HDFC BANK

Promoted by the Housing Development Finance

Corporation, a premier housing finance companyofIndia, HDFC Bank Ltd. is a major Indian financial

services companyhaving 1,725 branches and 4,232+ATMs, in 779 cities in India. It engages mainly in

Wholesale Banking Services, Retail Banking Services& Treasury.

8/8/2019 Banks Prsntn

14/24

ICICI BANK

The 2nd largest bank in India, the largest private

sector bank in India by market capitalization & thelargest issuer ofCredit Cards in India, ICICI Bankhas a networkof2,016 branches, 5,219+ ATMs in

India and presence in 18 countries, with a 24 million

customer base.

8/8/2019 Banks Prsntn

15/24

Ranked by Asset Size

1 State BankofIndia $235000 million

2 ICICI Bank $81261 million

3 HDFC Bank $49744.17 million

8/8/2019 Banks Prsntn

16/24

Market Capitalization & P/E Ratio

Banks Market Capitalization P/E Ratio

State BankofIndia $ 40687 million 18.64

ICICI Bank $ 28572.6 million 29.25

HDFC Bank $ 24365.4 million 32.25

8/8/2019 Banks Prsntn

17/24

A graphical view

Assets ( in $ million)

Market Cap (in $ million)0

100000

200000

300000

State BankofIndia

ICICIBank HDFC

Bank

State BankofIndia ICICI Bank HDFC Bank

Assets ( in $ million) 235000 81261 49744.17

Market Cap (in $million)

40687 28572.6 24365.4

8/8/2019 Banks Prsntn

18/24

A comparative study

8/8/2019 Banks Prsntn

19/24

Asset Wise Comparison

Bank of America Citibank Wells Fargo

State BankofIndia 9.46 times 7.9 times 5.29 times

ICICI Bank 27.36 times 22.85 times 15.30 times

HDFC Bank 44.69 times 37.32 times 25 times

Each cell shows byhow much the US bank is larger than the Indian Bank

8/8/2019 Banks Prsntn

20/24

Market Cap wise Comparison

Bank of America Citibank Wells Fargo

State BankofIndia 2.86 times 3.30 times 3.72 times

ICICI Bank 4.07 times 4.70 times 5.29 times

HDFC Bank 4.77 times 5.52 times 6.20 times

Each cell shows byhow much the US bank is larger than the Indian Bank

8/8/2019 Banks Prsntn

21/24

BankofAmerica - SBI

2223.29

116.29 0

235

40.6 18.640

500

1000

1500

2000

2500

Assets Market Cap P/E ratio

BankofAmerica SBI

8/8/2019 Banks Prsntn

22/24

Citibank ICICI Bank

1856.64

134.2185.5681.26 28.57 29.25

0200

400

600

800

10001200

1400

1600

1800

2000

Assets Market Cap P/E ratio

Citibank ICICI Bank

8/8/2019 Banks Prsntn

23/24

Wells Fargo HDFC Bank

1243.64

151.16

16.8549.74 24.36 32.250

200

400

600

800

1000

1200

1400

Assets Market Cap P/E ratio

Wells Fargo HDFC Bank

8/8/2019 Banks Prsntn

24/24

Thank you