I think high p/b is due to 3 things - its consistently high ROE (30% ) and 25%-28% loan book and no net npas.I think the loan book growth might be under threat if a)banks focus on gruh's segment with lower rates ( this will take time though market will discount this earlier )-I think this will happen and is inevitable but the market size is huge - I also foresee borrowers getting impatient for lower rates since information gets passed on who is charging how much - on npas co is spot clean but recent court case on high ticket LAP to royal raises some concerns as to why lend on LAP segment at such high ticket size .
I will be comfortable at a P/B of around 7-8 on the higher end for gruh.