Investors who had subscribed to any of these bank IPOs in the last 1-2 years are stuck. The can exit only at a loss of 40 to 50 per cent today on the investments they had made in these banks.

Consider this. The initial public offering of the State Bank of Bikaner & Jaipur was oversubscribed 4.17 times thanks to the enthusiastic response from the public. Within 10 months, the investment of Rs 65.94 crore (the issue size) has been reduced by 44 per cent to Rs 44.45 crore.

The bank had offered its shares in November last year at 94 per cent to its book value. Against the offer price of Rs 540, the stock now quotes at around Rs 300.

The loss to investors in the State Bank of Travancorescrip is even more sharp. The current value of their investment of Rs 69.24 crore has fallen by 50 per cent to Rs 34.62 crore. SBT had priced its Rs 100 share at Rs 600 (85 per cent of book value) and now quotes at around Rs 300.

Dena Bank's Rs 180-crore IPO now has a current market value of Rs 98 crore, a 45 per cent fall from its post-IPO days.

The bank offered each equity share of Rs 10 at a premium of Rs 20 (which was 106 per cent of its book value). After its listing in January 1997 at Rs 27, the scrip has been on the fall and, barring a few occasions, traded in the range of Rs 18-21. The stock currently quotes at Rs 16.

Jammu & Kashmir Bank, which was listed in August 1998 at Rs 31, has been falling steadily and is now quoting at around Rs 20. Although the bank had offered shares at 50 per cent to its book value (offer price Rs 38), the lack of interest in this counter on listing has denied investors an exit opportunity.

City Union Bank, which has recently been listed on the bourses, is anotherculprit so far as capital appreciation to the investors are concerned.

Although one month is a short period of time for an exit point, the erosion in the investment value to the tune of 42 per cent is a cause of concern.