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According to market analysts, SIB share is still underpriced in terms of its current book value (BV) at Rs35.5 as its price to book value ratio still hovers around one time.
KOCHI: The Thrissur-headquartered South Indian Bank (SIB) has overtaken its neighbour-lender, CSB Bank, in market value - a feat SIB accomplished for the first time since the listing of CSB Bank shares on December 4, 2019.
Having rising past CSB Bank’s market capitalization of Rs6590.73 crore to log Rs7272.28 crore on January 24, 2024 for the first time, SIB market cap has showed that there’s no going back since then.
As of today’s (January 31, 2024 market closed at Rs383.45), though CSB Bank’s market capitalization rose smartly to Rs6649.02 crore, it hasn’t posed any challenge to SIB since then, as SIB’s market cap always stayed a cut above that of its rival, inching up to Rs7240.74 crore as the market closed for trading today.
All these years, since its listing on both NSE and BSE more than five years ago, CSB Bank shares performed well having gained 41 per cent on the issue price of Rs195 on the listing day itself.
FIH Mauritius Investments Ltd (FIHM) that currently holds 49.72 per cent stake in the 104-year old CSB Bank, became the major shareholder in the bank by buying into 51 per cent stake in the bank at a price of Rs140 per share in October 2018.
SIB at Rs4.80
SIB shares had its lean days too on the market. The shares had fallen to as low as Rs4.80 on March 23, 2020 with the market capitalization measuring a meagre Rs868.66 crore, whereas CSB Bank shares at a market price of Rs99.05 per shares enjoyed a market cap of Rs1717.53 crore – close to double that of SIB market cap.
SIB market cap began its meaningful northward journey since the bank announced its third quarter results on January 18, 2024, when the bank’s quarterly net profit jumped197 per cent year on year to Rs305 crore.
According to market analysts, SIB share is still underpriced in terms of its current book value (BV) at Rs35.5 as its price to book value ratio still hovers around one time.
The ratio augers well for SIB when compared with CSB Bank’s price to book value ratio, which works out about two times at today’s closing price of around Rs383.45 (on NSE).
