ET Intelligence Group: The carnage in European financial stocks has rejigged the pecking order of banks in terms of market capitalisation. HDFC Bank , India’s second-largest private lender by assets and the second most expensive bank globally, has overtaken European majors such as Deutsche Bank Credit Suisse , SocGen in market cap . Kotak Mahindra Bank, with assets at just 1% of the Deutsche Bank, has emerged as one of most expensive banking stocks globally.The gap between the market caps of the two banks is down to $1 billion from $24 billion a year ago. Two years ago, HDFC Bank’s market cap was half that of Deutsche’s. Today, it’s almost double. Amid fears of corporate defaults and global slump, the health of assets have assumed a far greater importance over asset base in determining valuations.In the local market, banks with relatively safe retail franchises — such HDFC Bank, Kotak Mahindra and even IndusInd — are fetching higher valuations. HDFC Bank is trading at 4.07 times its tangible book value, while Deutsche Bank, Credit Suisse, and SocGen are trading between 0.35 and 0.64 times their respective book values.