SBI
is among the top ten banks of India. In fact, it is the largest bank
in terms of its network of 14000+ branches, including 190+ foreign
offices spread across 35 countries. However, in terms of market
capitalization, HDFC takes the lead over SBI.
For
the comparison purpose, we will consider the five-year performance of
current four largest banks – SBI, HDFC, ICICI and Bank of Baroda.
SBI
In
the past five years, SBI
share price
has given approximately 6% annualized return and remained below Rs350
mark. In the period 2013-14 and in the first half of 2016, its prices
had dipped to as low as Rs150. This year, SBI
share price
performance has not been up to mark so far. After touching a high of
Rs330 in January 2018, it is currently hovering between Rs200 and
Rs300. In spite of its NPA and bureaucracy issues, SBI remains a
strong bank. It has registered a growth of 18.6% on the YoY basis in
Q4FY18, and its outlook is quite bullish.
HDFC
HDFC bank has been one of the
most consistent performers on the stock market. Between
the period 2004 and 2016, HDFC share price appreciated by enormous
2700% from Rs50 to Rs1300. In December 2014, HDFC took the share
market community by surprise when it overtook SBI’s five times
bigger balances sheet to become the most valuable company. It
continued its rising jump in 2017 too starting from Rs1200 in January
to reach Rs1800 by the end of the year. This year, its price has
witnessed fluctuations, but it hasn’t dipped below Rs1800 so far.
The dividend yield of 650% (Rs13 per share) at the end of Q4 took it
to new heights. In 2018, its highest price has been Rs2100 and
currently hovering between Rs1900 and Rs2000. However, its premium
price may not be a cup of tea for all.
ICICI
ICICI Bank has more or less
followed the route of SBI
share price
in the last five years. Its price has altered between Rs200 and
Rs350, but never touching Rs400 during this period. After reaching a
high of Rs360 in January 2018, it is currently stuck at less than
Rs300. May 2018 has hit its prices on the lower side with 2% drop due
to CEO Chanda Kochhar-Videocon controversy. Till the issue resolves,
ICICI share prices may have to wait to see the better days.
Bank of Baroda
Bank of Baroda share price has
ebbed and flowed in the range of Rs90 and Rs225 in the last five
years. Currently staying below the mark of Rs200, Bank of Baroda
hasn’t either offered much value to its holders.
The banking sector in India is
very well-established and regulated under RBI. Before investing in
any of the bank shares, a peer performance comparison is advisable.
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