From time of listing to reaching an all-time high, RBL bank has made it large
Motilal Oswal said, "We believe RBL deserves significant premium compared to peers, considering its industry leading growth rate, improvement in profitability and pristine asset quality."
S&P Bankex ended among top performers on Monday tradings, surging over 128 points or 0.53% at 24,551.68-level.
Almost all stocks closed on a positive on this index, but there was one stock which touched an all-new high.
Shares of RBL Bank reached an all time-high at 599-mark on Monday – this has more than doubled since the time the bank got listed. Shares of RBL closed Rs 587.50 a piece higher by 30 points or 5.52% on BSE.
Starting it's journey at Rs 299.30 a piece from August 31, 2016, RBL Bank has made it large compared to it's peers.
With reaching new highs, the bank has now entered into the list of India 10 most valuable banks.
Touching a market capitalization of Rs 22,165.13 crore, RBL has replaced IDFC Bank (m-cap of Rs 20,665.96 crore) in the most valuable club.
Under m-cap list, HDFC Bank stands at top place with Rs 3,68,814 crore, followed by State Bank of India with Rs 2,34,212 crore, ICICI Bank with Rs 1,61,995 crore, Kotak Mahindra Bank with Rs 1,60,351 crore, Axis Bank with Rs 1,21,727.71 crore, IndusInd Bank with Rs 84,608 crore, Yes Bank with Rs 72,494 crore, Bank of Baroda with Rs 39,170 crore and Punjab National Bank with Rs 31,994 crore.
Not only this, RBL has given over 100% returns on its stock in just 7 months of listing - highest compared to it's peers which has given returns in the range of 18% - 82%.
After RBL, Yes Bank stood at second place with 81.41% returns, followed by Punjab National Bank with 75% returns, IDFC Bank with 72% returns, State Bank of India with 50% returns, IndusInd Bank with 48% returns and Axis Bank with 41% returns on their stocks in financial year 2016 - 17.
On August 31, 2016, RBL Bank got listed at a premium of 33% on Indian stock exchanges, after receiving strong response in its initial public offering (IPO). The bank raised over Rs 1,213 crore after receiving demands for over 69 times the shares on IPO issue.
The bank's IPO issue opened on August 19, 2016 and closed on August 23, 2016.
Analysts at Motilal Oswal in one of its report has called RBL Bank's business model unique. They said, "RBL has created a niche for itself in the agri-lending space, whereby, it caters to the entire supply chain in this segment (following a needs based approach – tractor, irrigation loans, warehousing facilities)."
They have added, "We believe the bank has cracked the right business model in a difficult (yet rewarding) segment, evidenced by agri NPAs of just 0.6% (as against banking system NPAs of >5%). RBL is treating the acquisition of large corporate as the means to gain access to their vendor base and high quality salaried accounts. Moreover, the bank realizes the importance of early stage acquisition of high quality SMEs."
Finally Motilal Oswal said, "We believe RBL deserves significant premium compared to peers, considering its industry leading growth rate, improvement in profitability and pristine asset quality."