The Businessworld magazine in India published an India’s Best Banks of 2009 list last week. The winners were listed in three categories: large, medium and small size banks. The factors used to select these banks are growth, size, sustainability and some risk parameters. A total of 56 commercial banks were analyzed to identify the top performing banks.
The Ten Best Indian Banks for 2009 in the large-size category are:
|1||State Bank of India|
|4||Bank of India|
|5||Punjab National Bank|
|6||Bank of Baroda|
|8||Union Bank of India|
ICICI Bank (NYSE:IBN) and HDFC Bank (NYSE:HDB) are the only two banks that trade on the US organized exchanges. IBN’s P/E is 25.35 and the current yield is just 1.32%. HDB’s P/E is even higher at 32.88 and the yield is 0.50%. Both of the banks are expensive at current levels.The banking sector in India is expected to face many headwinds next year.
To download the complete list of India’s Best Banks, click here (pdf).