While evaluating a Bank's stock don't go by the growth of business.
Business consists of Deposit and Advances.
In deposit there are Savings, Current Account, Term Deposits at card rate and Bulk deposits.
Always take out the deposits separately for each quarter.
Then see the growth. In many cases, you will find that the growth of deposit is mainly due to TD and Bulk deposits. Bulk deposits are a loss proposition for Banks, as it is accepted at a higher rate than the card rate. If the bulk deposits are more than the normal deposits, the growth in fact is negative and the Bank is showing growth in business at the cost of making profit.
Similarly it is for advances. Here we have to see how much is retail advance and how much is corporate advance. Retail advance is always better than the corporate. Again Corporate advances may be short term or for long term. Long term is also OK for the Bank. But if the Bank is deploying too much of its advances in short term advances to the corporates, it infers two things.
1. The Bank has taken too much bulk deposits without any clear cut idea of deploying it, and hence resorting to short term corporate loans, which is generally at a abysmally low rate of intt, say even less than 7% in some cases.
2.The Bank does not have good credentials among corporates, to deploy these funds in the long term. (There is a competion in this segment of advances by the Banks.)
The above I think will help in analysing the Banks position for taking investment decission.
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