New valuation gap between top tier pvt sector banks and their small peers

BL Bank, for example, is down 47.2 per cent during the period. Its m-cap is down from ~15,700 crore on February 20 to ~8,283 crore at the close of trading on March 16

A sharp correction in banking stocks has opened a large valuation gap between top tier private sector banks and their smaller peers. While private sector banks have seen a 23.4 per cent decline market capitalisation (m-cap) on average since February 20, when the markets began to correct, many smaller banks lost nearly a third of their m-cap during the period.

RBL Bank, for example, is down 47.2 per cent during the period. Its m-cap is down from Rs 15,700 crore on February 20 to Rs 8,283 crore at the close of trading on March 16. IndusInd Bank is down 44