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
Top Related