To drive share price, valuation pays equal part as growth. I have sold my RBL bank in 2018 at 5 times book value. So valuation still have scope to increase with consistency in reported earning and increase in RoE. Though none of the private bank is trading at 5 times book now, we do not know valuation given to banks will increase or collapse? If both shows increasing trend, valuation will increase and vice versa.
Disclosure: Holding
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