According to market sources, the banks have already started the groundwork for the issues. As many as 10 bank issues are slated to hit the market in 1998-99.

Centurion Bank, TimesBank, IDBI Bank, UTI Bank, City Union Bank, State Bank of Hyderabad and Punjab National Bank have already announced their intention to go public. The initial public offerings (IPOs) from Centurion Bank, TimesBank, IDBI Bank and UTI Bank are likely to hit the market before September 1998, said another market source. "If these banks do not tap the public before September 1998, they have to include unaudited results for the first six months of fiscal 1998-99 in the prospectus," the source added.

State Bank of Hyderabad is entering the market with an issue of Rs 57.50 crore at a premium of Rs 900. Other banks tapping the market are Punjab NationalBank (Rs 500 crore) at a premium of Rs 65 against a face value of Rs 10, UTI Bank (Rs 60 crore), TimesBank (Rs 250 crore), Centurion Bank (Rs 34 crore) and IDBI Bank (Rs 150 crore). Although the PNB issue was slated to open in January 1998, it has now been deferred indefinitely.

With so many issues slated to tap the market, 1998-99 is going to be a year of bank IPOs. The total bank issue size may be in the region of Rs 3,500 crore for the current fiscal and most of them may follow a conservative pricing policy, said Prithvi Haldea of Prime.

In the last fiscal, the primary market was dominated by a host of bank IPOs. However, the small investor's appetite for bank IPOs is yet to die down. The retail response to the recently closed Jammu and Kashmir Bank issue has been impressive. The issue is believed to have been subscribed by over two times.

Despite its limited exposure, the public response to J&K Bank issue is understandable as the bank had offered the shares at a 50 per cent discount to its bookvalue. Compared with some of the other bank issues in the past (like Dena Bank 1.06 times, SBBJ 0.94, SBT 0.85), the offer price was attractive for small investors.

In the past year, some of the other bank issues which evoked an overwhelming retail response were Corporation Bank, Bank of Baroda, Bank of India, State Bank of Bikaner and Jaipur and ICICI Bank. Except SBBJ, all these banks have provided good exit opportunities to investors after their listing.

Corporation Bank and Bank of Baroda provided more than 90 per cent capital appreciation in a few months.