Is RBL Bank overvalued or undervalued?

As of 24 July 2025, RBL Bank's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The bank is currently fairly valued, with a PE ratio of 29.72, a Price to Book Value of 1.01, and a PEG ratio of 0.00. Notably, the bank's Return on Equity (ROE) stands at 3.40%, while the Return on Assets (ROA) is at 0.36%, reflecting its operational efficiency.
In comparison to its peers, RBL Bank's PE ratio is higher than that of Axis Bank, which is at 12.99, but lower than Kotak Mahindra Bank's 30.93. HDFC Bank and ICICI Bank are also trading at higher valuations, with PE ratios of 22.28 and 21.62, respectively. While RBL Bank has shown a strong year-to-date return of 61.87% compared to the Sensex's 5.18%, the recent decline of 4.82% over the past week suggests some volatility in the stock price. Overall, RBL Bank appears to be fairly valued in the current market context.