Yes. In case of INDUSIND BANK, HDFC BANK, KOTAK BANK, the Median P/B is above 4 for past 10 years and now it is moving down in the past 5-6 years.
Premium Valuations which these banks had enjoyed during 2010-2020 has been de-rated by Mr. Market.
Where as ICICI BANK and SBI are trading above their 10 Year Median P/B. Axis Bank is trading close to 10 Year Median P/B.
This happens generally when banks like ICICI BANK, SBI, AXIS BANK start reporting Lower GNPA/NNPA and they get re-rated by Mr. Market. This has happened to some extent before 2012 as well.
When Mr. Market starts believing that, Banks have cleaned their books and Now their GNPA will remain in control or reduce, then its starts giving higher P/B to such Banks.
Also, this means that Market is not happy about KOTAK BANK and HDFC BANK going forward. Hence they have de-rated them.
When credit cycle turns around, and GNPA starts rising then this trend reverses or can reverse in future. It is difficult to predict whether KOTAK BANK and HDFC BANK will maintain their GNPA at current levels or not. If Yes, they may get rewarded by Market and P/B can move up or will remain close to 2.5 or 3.0.
We have to wait and watch for next 5-6 years for that. Till that time, every investor can build their own judgement on this and either remain invested in these 2 well managed banks or can switch to other large banks.
I have not considered IDFC FIRST BANK as it has limited history.
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