A man holds two thousand and five hundred Indian rupee banknotes in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Bandhan Bank Loses Most Expensive Tag To AU Small Finance Bank

A steep decline in the shares of Bandhan Bank Ltd. since the central bank placed restrictions on its operations means that it’s no longer the most expensive banking stock in the world. Still, an Indian lender retains the tag: AU Small Finance Bank Ltd.

Shares of Bandhan Bank have fallen 15.5 percent since Sept. 27 when the Reserve Bank of India placed curbs on branch expansion after the lender failed to lower promoter holding within the limit set by the regulator. That triggered concerns about its growth, return ratios and margin.

In contrast, shares of AU Small Finance Bank fell 8.2 percent during the period.

AU Small Finance Bank trades at 7 times its book value, according to Bloomberg. That’s the highest among lenders with at least a market value of Rs 5,000 crore and covered by at least three analysts.

Bandhan Bank is placed second, followed by South Africa’s Capitec Bank Holdings. Kotak Mahindra Bank Ltd. ranks fourth, HDFC Bank and IndusInd Bank are at fifth and seventh positions, respectively.

Seven of the top 15 costliest banking stocks on the list are Indian. The rest are from Indonesia, Chile, Vietnam, and South Africa.

Bandhan Bank Loses Most Expensive Tag To AU Small Finance Bank