Valuation
Considering the P/E valuation on the upper end of the price band of Rs. 225, the stock is priced at
pre issue P/E of 25.23x on its FY16 EPS of Rs. 8.92. Post issue, the stock is priced at a P/E of 28.94 x on
its EPS of Rs. 7.78. Looking at the P/B ratio at Rs. 225 the stock is priced at P/B ratio of 2.51x on the
pre issue book value of Rs.89.79 and on the post issue book value of Rs. 107.11the P/B comes out to
2.10x. On the lower end of the price band of Rs.224 the stock is priced at pre issue P/E of 25.12x on
its FY16 EPS of Rs. 8.92.Post issue, the stock is priced at a P/E of 28.81x on its EPS of Rs. 7.78. Looking
at the P/B ratio at Rs. 224, the stock is priced at P/B ratio of 2.49x on the pre issue book value of Rs.
89.79 and on the post issue book value of Rs. 107.11 , the P/B comes out to 2.09x.

Outlook
The bank has been consisting delivering on improving asset quality, cost efficiency and
other income since last 4-5 years. Consistent rise in non-performing assets hit balance
sheets of banks but it is maintaining its capital requirements under the Basel III
Requirements as per the RBI's new capital adequacy guidelines. Moreover, Its provision
coverage ratio is improving as well as restructured loans percentage are reducing year on
year basis, which is showing that bank has been able to maintain asset quality. NPA is
slightly on the higher side due to RBI's clean up balance sheet action, but management of
the bank is confident to reduce that to best in the industry. Thus, investors who have long
term aspect could opt for the issue.