Is Your Bank Healthy?


After the latest decision of government to put private sector lender YES Bank under moratorium till April 3, the fear of whether the banks in India are healthy have raised in the people.

How to check whether your Bank is Healthy?

This could be understood by checking the MCAP ratio (Market Capitalization Ratio).  The MCAP ratio could be find by using a  simple equation;

MCAP= Total Deposits/Value of Company in the stock market.

IF the value of your bank is less than 2.5, your bank is healthy …

The comfortable zone of the MCAP ratio lies between 2.5 – 4.

Here is the list of few famous bank with their MCAP ratio, released by ThePrint



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