in just two years ,by 2012,IDBI Bank aims to become the fifth largest Bank in India by way of Asset size and Market Cap…it stands at 11th ranking now…Share Price needs to Double for this !

IDBI Bank opened at Rs 190 this morning,taking off from the last few minutes surge last afternoon to Rs 187….Price could not be sustained and currently it’s trading below Rs 180 at 3.15 pm….just a coincidence perhaps that there is an analyst/broker meet organised this afternoon at IDBI Towers at Cuffe Parade,Mumbai to boast the second quarter results at September 30,2010…..Bank has reported PAT of Rs 429 crs for Q2 FY 11a jump of 69% from the Rs 254 crs recorded in Q 2FY 10 

The Bank aims to be the fifth largest Bank in India by 2012 in terms of Assets and Market Cap

As Investors we connect more to Market Cap !….so where does IDBI rank now in this parameter ? Have a look below (courtesy moneycontrol)…With Rs 17630 crs Market Cap as of now,it ranks 7th in the list of  Listed PSU Banks and 11th overall if Private banks too are considered,implying there are four private banks ahead of it in terms of Market cap

BANKS IN INDIA : SHARE PRICES AND MARKET CAP AT 3 pm ON FRIDAY,OCTOBER 29,2010

   
BSE – All Groups Private Banks

29 Oct 15:00

 
  Company Name

Last Price

% Chg

52 wk
High

52 wk
Low

Market Cap
(Rs. cr)

 
  ICICI Bank

1,144.00

4.93

1,173.65

804.40

127,677.83

 
  HDFC Bank

2,260.00

-0.56

2,518.00

1,576.95

104,548.70

 
  Axis Bank

1,449.00

0.16

1,608.00

919.00

59,317.13

 
  Kotak Mahindra

461.40

-3.31

529.50

358.98

33,846.24

 
  YES BANK

356.00

-1.98

380.00

228.75

12,290.90

 
  IndusInd Bank

263.00

-2.48

288.00

118.90

12,208.36

 
  Federal Bank

464.25

-1.16

482.20

237.50

7,936.09

 
  ING Vysya Bank

402.00

-1.42

432.00

245.90

4,842.23

 
  JK Bank

892.90

0.88

916.00

565.20

4,328.58

 
  Karur Vysya

533.00

-0.25

639.14

262.14

4,061.98

 
  Bk Of Rajasthan

212.10

1.80

213.50

55.80

3,422.24

 
  South Ind Bk

27.40

-4.70

29.20

13.42

3,096.38

 
  StanChart IDR

116.50

0.87

125.00

99.80

2,796.00

 
  Karnataka Bank

183.50

0.85

193.90

114.50

2,461.93

 
  City Union Bank

50.55

0.20

51.80

23.73

2,022.00

 
  Dhanlaxmi Bank

186.45

-4.26

212.50

138.50

1,586.98

 
  DCB

69.40

-6.59

76.70

34.50

1,388.77

 
  Lakshmi Vilas

128.45

-2.43

142.80

72.70

1,253.14

 
               
               
   
 
BSE – All Groups : PSU Banks

29 Oct 15:01

 
  Company Name

Last Price

% Chg

52 wk
High

52 wk
Low

Market Cap
(Rs. cr)

 
  SBI

3,130.00

-1.50

3,322.00

1,934.40

198,754.41

 
  PNB

1,287.05

-1.75

1,360.20

846.80

40,581.01

 
  Bank of Baroda

1,000.00

-1.07

1,048.65

517.70

36,553.00

 
  Canara Bank

719.00

0.46

746.25

344.00

29,479.00

 
  Bank of India

484.00

-3.55

588.00

310.15

25,454.04

 
  Union Bank

378.00

-0.33

426.80

243.45

19,093.46

 
  IDBI Bank

179.10

-0.75

185.55

111.25

17,630.89

 
  Indian Bank

291.40

-0.53

316.50

156.00

12,523.50

 
  Oriental Bank

493.25

-0.21

522.00

240.00

12,357.87

 
  Allahabad Bank

245.90

-2.94

261.50

121.50

10,984.35

 
  Corporation Ban

745.70

-1.28

802.00

423.95

10,696.32

 
  Central Bank

225.10

-4.05

248.70

134.60

9,097.22

 
  IOB

158.80

-2.79

173.40

89.35

8,651.42

 
  Andhra Bank

177.00

0.40

190.15

99.55

8,584.50

 
  Syndicate Bank

136.75

-0.69

146.45

85.00

7,137.92

 
  UCO Bank

125.00

-3.66

138.70

51.50

6,867.00

 
  Vijaya Bank

105.65

-3.60

114.00

44.90

4,580.12

 
  State Bnk Tr

887.00

-0.92

1,080.00

641.00

4,435.00

 
  United Bank

126.30

-2.43

148.00

66.10

3,996.52

 
  State Bnk My

830.30

-2.18

1,266.91

509.80

3,885.80

 
  Dena Bank

135.30

-2.20

144.30

60.00

3,880.72

 
  State B Bikaner

720.10

-2.37

874.00

527.00

3,600.50

 
  Bank of Mah

77.25

-2.40

84.95

43.10

3,325.77

 
               
   
   
                     

 Extracted from above : TOP BANKS IN INDIA BY MARKET CAP AT 3 pm ON FRIDAY,OCTOBER 29,2010

   
BSE – All Groups Private Banks : TOP 5

29 Oct 15:00

 
  Company Name

Last Price

% Chg

52 wk
High

52 wk
Low

Market Cap
(Rs. cr)

 
  ICICI Bank

1,144.00

4.93

1,173.65

804.40

127,677.83

 
  HDFC Bank

2,260.00

-0.56

2,518.00

1,576.95

104,548.70

 
  Axis Bank

1,449.00

0.16

1,608.00

919.00

59,317.13

 
  Kotak Mahindra

461.40

-3.31

529.50

358.98

33,846.24

 
  YES BANK

356.00

-1.98

380.00

228.75

12,290.90

 
   
 
BSE – All Groups : PSU Banks : TOP 7

29 Oct 15:01

 
  Company Name

Last Price

% Chg

52 wk
High

52 wk
Low

Market Cap
(Rs. cr)

 
  SBI

3,130.00

-1.50

3,322.00

1,934.40

198,754.41

 
  PNB

1,287.05

-1.75

1,360.20

846.80

40,581.01

 
  Bank of Baroda

1,000.00

-1.07

1,048.65

517.70

36,553.00

 
  Canara Bank

719.00

0.46

746.25

344.00

29,479.00

 
  Bank of India

484.00

-3.55

588.00

310.15

25,454.04

 
  Union Bank

378.00

-0.33

426.80

243.45

19,093.46

 
  IDBI Bank

179.10

-0.75

185.55

111.25

17,630.89

 
   
                         
   
BSE – All Groups All  Banks : TOP 5

29 Oct 15:00

 
  Company Name

Last Price

% Chg

52 wk
High

52 wk
Low

Market Cap
(Rs. cr)

 
  SBI

3,130.00

-1.50

3,322.00

1,934.40

198,754.41

 
  ICICI Bank

1,144.00

4.93

1,173.65

804.40

127,677.83

 
  HDFC Bank

2,260.00

-0.56

2,518.00

1,576.95

104,548.70

 
  Axis Bank

1,449.00

0.16

1,608.00

919.00

59,317.13

 
  PNB

1,287.05

-1.75

1,360.20

846.80

40,581.01

 
   
 
   
                         

 Now IDBI Bank is aiming to become the 5th largest Bank by Market Cap by 2012

 How can the Market Cap ranking of IDBI Bank rise from 11th overall  to 5th ?

  • Share Price of IDBI Bank moves relatively higher than those of other banks in contention or holding  top rankings
  • IDBI Bank issues more Equity Shares without affecting its share price…other banks do not raise further equity or do so only marginally
  • Share Prices of Other Banks move down while that of IDBI Bank goes up or atleast holds current price

You can observe that as it stands currently,IDBI Bank will have to negotiate  six banks to surge to overall 5th ranking of over Rs 40000 crs Market Cap…Five Leading PSU banks…Union Bank,Bank of India,Canara Bank,Bank of Baroda,PNB… and one Private Bank…. Kotak Mahindra….all these six banks have a current market cap of over IDBI Bank’s Rs 17631 crs with rankings in the 5th to 10th postions

It’s pretty challenging for IDBI Bank considering that other Banks too will not be mute spectators….they too will have targets 

Other scenarios being constant,IDBI Bank’s share price has to move up more than 100% from the current Rs 179 to cross Rs 350 in the next two years if the Market Cap has to reach Rs 40000 crs and give the Bank some chance of getting an overall  5th ranking….assuming that share prices of others banks too will move up in the next two years and therefore so will their market cap,then the share price of IDBI Bank has to move up even more smartly than 100% ! 

Perhaps it’s aim is less challenging to aim for 5th ranking within PSU Banks only…then it’s market cap has to cross merely Rs 25000 crs read more