Barron's Value Pick : ICICI Bank (IBN)

According to Barron’s, India’s ICICI Bank (ADR) (NYSE: IBN) is an exciting prospect for value investors. The company is currently valued at 1.6 times forward book value, making it much cheaper than the sector average of 2.3 times forward book value.

This low valuation is despite ICICI Bank’s share doubling in value in the last one year. ICICI is facing heightened competition in the domestic loans segment. Analysts also cite that two other key risks remain for the stock. One is that its fortunes are closely tied to the fortunes of the Indian economy. Secondly, India’s central bank is expected to raise rates thus adversely affecting the sector. The bank is headed by Ms. Chanda Kochhar, who took over the top post in 2008.