Bank IPOs in India: Why Most Disappointed Investors
Why in the news
IndusInd Bank’s slide of over 30% in recent weeks, to 2014 levels, highlighted how poorly new bank listings have performed.
Key facts
| Measure | Detail |
|---|---|
| Positive-return IPOs | AU SFB, CSB Bank, Equitas SFB, Jana SFB |
| Failure rate | 92% |
| Other banks’ market cap share | 17.5% down to 13.5% |
- IDFC First, Bandhan, RBL and other small private banks lagged the index.
- Index heavyweights: HDFC Bank, SBI, ICICI Bank, Axis Bank, Kotak Mahindra Bank.
- In the 2023 U.S. banking crisis, Silicon Valley Bank collapsed while JP Morgan Chase and Bank of America did well.
Takeaway
- Scale matters; the index is safer than small banks.
Exam angle
- Sole outperformer: AU SFB.