Banking is a tough business; we know that. However, it is not such a bad business that a good manager cannot take advantage of its economics. Yet, a bad manager can surely keep the reputation intact while running a bank. Here's the proof.
The public sector banks in India have the reputation for being run poorly. The evidence is more prominent now.
As of 10 February 2016, the market capitalization of the major public sector banks was as below:
The stock prices of these banks have reached the deep bottom; and it should take a while before they are restored to more reasonable levels.
State Bank of India is currently quoting at September 2007 prices.
Punjab National Bank is at February 2005 prices.
Bank of Baroda is at February 2010 prices.
IDBI bank is at October 2003 prices.
Canara bank is at December 2004 prices.
Syndicate bank is at February 2005 prices.
Such is the state of these banks that these pictures say much more than they are required to; and I haven't got anything to say now other than into the abyss.
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