Capital market rating of 47/100 for RBL Bank Limited implies a Subscribe rating.

Robust growth in the last few years.

Valuation

RBL Bank's EPS for FY2016 on post-issue equity works out to Rs 7.91. At the price band of Rs 224 to Rs 225, P/E works out to 28.3 to 28.4 times.

The book value of RBL Bank is Rs 90.03. Post-issue, the book value works out to Rs 103.49 at the issue price of 224 and Rs 103.53 at the issue price of Rs 225. P/BV works out to 2.17 times and P/Adj BV is at 2.30 times.

Among the comparable banks, City Union Bank is trading at P/BV (on FY 2016 BV) of 2.51 and P/Adj BV of 2.83, South Indian Bank trading at P/BV of 0.78 and of P/Adj BV of 1.19, and DCB Bank trading at P/BV of 1.85 and P/Adj BV of 1.97, Federal Bank is trading at P/BV of 1.35 and P/Adj BV of 1.56 and Karur Vysya Bank is trading at P/BV of 1.29 and P/Adj BV of 1.40.

At the price band of 224-225, RBL Bank is offered at a P/E of 28.3. Among the comparable banks, City Union Bank trades at P/E (on FY 2016 EPS) of 17.2, South Indian Bank at 8.7, and DCB Bank at 16.6, Federal Bank at 23.0 and Karur Vysya Bank at 10.4.

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