Photo: MintSingapore: The investment metric on which Indian banks appear most eager to ape their Chinese peers is the price-to-truth ratio. Still, the delayed disclosures do call into question the 23% rally in Indian bank stocks in dollar terms so far this year. The MSCI India Financials Index, in which Yes Bank has the third-highest weighting, trades at a price-to-book ratio of 2.4 times, compared with 0.9 for a similar Chinese benchmark. On a price-to-truth basis, Indian banks look overvalued. The more stratospheric the price-to-truth multiple for Indian banks, the bumpier may be their return to terra firma.

Source: Mint May 15, 2017 10:07 UTC