Economic value Added (Rs.

)
Table Economic Value Addeded (EVA) (In Rs.) in Private Sector Bank
Axis
Bank

HDFC

ICICI

Indulsind

Bank

Bank

Bank

Private Bank

ING
Karnataka
Vyasya
Bank
Bank

Kotak
Mahindra
Bank

Economic
Value Addeded

7823.35 10758.98 46200.98 1842.031

1597.396 1516.937

4504.257

(EVA) (In Rs.)

50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0

46200.98

7823.35

10758.98
1842.031 1597.396 1516.937

4504.257

Interpretation;
Eva in Rs. Therefore taking average of NOPAT and WACC of 2004-2005 to 2009-2010. In chart ICICI bank
has higher amount of EVA at 46200.98 and second position HDFC at 10758.98. Eva has been show higher
value addition in economics by increasing in NOPAT. Karnataka has lower EVA at 1516.937. WACC
should taking from weightage of cost of equity and cost of debt.

Table Economic Value Addeded (EVA) (In Rs.) in Public Sector Bank
Economic
Bank

Value Addeded
(EVA) (In Rs.)

Economic Value
Bank
Indian Overseas
Bank
Oriental Bank of
Commerce
Punjab National
Bank

Addeded (EVA) (In

Rs.)

Andhra Bank

4287.238147

Allahabad Bank

6400.260361

Bank of Baroda

11780.01862

Bank of India

12965.80972

Syndicate Bank

7603.006484

Bank of Maharashtra

3349.207476

Union Bank of
India

8941.744265

Canara Bank

14574.51528

UCO Bank

6885.4052

Corporation Bank

5069.415167

Vijaya Bank

3687.058281

Dena Bank

2725.311166
State Bank of India

74159.43321

IDBI Bank

6942.796066
7007.329912
13739.9657

10379.2228

State Bank of India

UCO Bank
Syndicate Bank
OBC
IDBI Bank
Corporation Bank
Bank of Maharashtra
Bank of Baroda
Andhra Bank

74159.43321
3687.058281
6885.4052
8941.744265
7603.006484
13739.9657
7007.329912
6942.796066
10379.2228
2725.311166
5069.415167
14574.51528
3349.207476
12965.80972
11780.01862
6400.260361
4287.238147

Interpretation;
Eva in Rs. Therefore taking average of NOPAT and WACC of 2004-2005 to 2009-2010. In chart SBI bank
has higher amount of eva at 74159.43321/- and second position canara at 14574.51528/- Eva has
been show higher value addition in economics by increasing in NOPAT. Dena Bank has lower eva at
2725.311166/- Public bank are done more value addition than private bank because of more hung fund
investment and more branch expansions.

ECONOMIC VALUE ADDED (IN %)

Table Economic Value Added (EVA) (In %) in Private Sector Bank
EVA (%)

2006-07

2007-08

2008-09

2009-10

2010-11

Axis Bank

41.35%

37.85%

34.90%

26.94%

25.16%

HDFC Bank

57.28%

48.82%

54.45%

34.61%

34.61%

ICICI Bank

42.56%

41.34%

35.18%

30.38%

27.58%

IndusInd Bank

78.05%

66.73%

43.98%

26.61%

25.87%

ING Vyasya Bank

53.08%

49.96%

38.98%

29.37%

29.53%

Karnataka Bank

62.58%

85.20%

107.44%

70.71%

54.71%

Kotak Mahindra Bank

32.85%

47.72%

42.14%

56.57%

34.07%

Kotak Mahindra Bank

Karnataka Bank
2010-11
ING Vyasya Bank

2009-10

IndusInd Bank

2008-09

ICICI Bank

2007-08
2006-07

HDFC Bank
Axis Bank

Interpretation;
When the question arises so as to create the economic value, Karnataka bank stands firm at the top
spot with 107.44% in 2008-09, 70.71% in 2009-10 and lower 54.71% in 2010-11. HDFC too gave
inconsistent performance in 2006-07 to 2010-11 giving the economic value added of 57.28 % to 34.61%
between with second spot. kotak was shown 32.85%,47.72%,42.14,%56.57%34.07% from 06-07 to
10-11 respectively. Instead of excellent capital investment, capital charge and cost of equity, it failed to
give better EVA compared to other sectors

Table Economic Value added (EVA) (In %) in Public Sector Bank

EVA %

2006-07

2007-08

2008-09

2009-10 2010-11

Andhra Bank

62.81%

84.98%

65.08%

49.16%

44.77%

Allahabad Bank

89.13%

72.53%

67.88%

57.41%

58.53%

Bank of Baroda

71.49%

63.98%

47.86%

47.06%

40.65%

Bank of India

58.10%

59.09%

49.29%

40.92%

43.86%

Bank of Maharashtra

119.05%

134.11%

74.63%

69.73%

61.46%

Canara bank

84.27%

102.34%

57.93%

69.52%

54.67%

Corporation bank

39.29%

57.86%

53.77%

40.99%

32.92%

Dena bank

83.85%

102.66%

71.69%

83.13%

71.18%

IDBI Bank

11.27%

16.40%

20.18%

24.17%

24.23%

Indian overseas Bank

66.50%

59.51%

45.70%

44.32%

30.02%

Oriental bank of
commerce
Punjab national bank

69.00%

71.70%

76.25%

63.97%

55.63%

66.41%

58.43%

54.95%

43.51%

37.60%

Syndicate bank

106.71%

126.91%

80.15%

45.76%

55.66%

Union Bank of India

56.61%

63.31%

54.50%

54.46%

46.83%

UCO bank

85.31%

123.50%

80.65%

71.41%

72.47%

Vijaya Bank

110.13%

81.31%

83.91%

72.56%

62.74%

State Bank of India

61.27%

62.98%

55.32%

54.38%

54.50%

State Bank of India

Vijaya Bank
UCO bank
Union Bank of India
Syndicate bank
Punjab national bank
Oriental bank of commerce
2010-11
Indian overseas Bank

2009-10

IDBI Bank

2008-09

Dena bank

2007-08
2006-07

Corporation bank
Canara bank
Bank of Maharashtra
Bank of India
Bank of Baroda
Allahabad Bank
Andhra Bank

Interpretation;
Bank of Maharashtra stands firm at the top spot with 134.11% in 2007-08, 119.05% in 2006-07 and
lower 61.46% in 2010-11. UCO too gave consistent performance in 2004-05 to 2009-10 giving the
economic value added of 130.63 % to 76.31% between with second spot. Syndicate bank has three
position with 127.91% In 2007-08,106.71% in 2006-07 and lower 45.76 in 2009-10%. Idbi was steady on
the last spot with 24.17% and 24.23% in 2019-10 and 2010-11 respectively. Instead of excellent capital
investment, capital charge and cost of equity, it failed to give better EVA compared to other sectors. Sbi
public bank has been inconstititant lower rate of eva.