How to Find good bank to invest
On the basis of P/B ratio we can find good bank to invest Why is P/B Ratio More Relevant for Banks Than P/E Ratio? There are many financial ratios that can help you determine the financial health of a bank, like GNPA, NNPA, PCR, CAR, CASA, NIM, P/E, and P/B ratios. Each of these ratios provides certain insights into the bank’s financial strength. Today, we are going to focus on two commonly used financial ratios – P/E and P/B and look at the reasons that make P/B ratios more relevant to banks than P/E ratios. What are The P/E Ratio and P/B Ratio? The market price of the share of a company is an indicator of the way investors perceive it. If the investors feel that a company holds a lot of promise and can grow and earn good profits in the future, then they would want to buy its shares leading to an increase in its price. On the other hand, if a company is perceived to be in troubled waters, then investors tend to stay away and sell its stocks . While the market price of a share does