Why PE and PB aren’t enough for banks – Know the best banking ratios for stock analysis in India
Investing in banking stocks is not the same as investing in IT, FMCG, or manufacturing companies. While many investors look at general ratios like Price-to-Earnings (P/E), Return on Equity (ROE), or use DCF models, these tools don’t capture the real risks of banks. Why? Because banks deal with money as their raw material. Their business