[1] As on Sept 2005 , the price to earning ratio or PE for State Bank of India's share is 9.80 and that of ICICI Bank is 18.20
The ICICI share market price is almost twice that of what it should have been compared to SBI earnings on earnings. The price should have been around Rs 290 per share and not Rs 544 per share trading now or the public issue price band of 505 - 550.
[2] The Price to book value ratio or PBV for SBI is 1.80 where as it is 2.90 for ICICI Bank. It is almost 40% overheated than SBI. The Share price should have been around 340 and not the dizzy 544.
It makes more sense to buy SBI shares even at the present levels of 910 per share than to buy ICICI public issue.
It makes more sense to buy SBI shares even at the present levels of 910 per share than to buy ICICI public issue.
[3] What more , it is understood that some senior managers of ICICI Bank had even offloaded their holding even months before the public issue.
ICICI public issue could be a scam coverup.
Dhakshina Moorthy, K M
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