With steady loan growth, RBL Bank draws many similarities to HDFC Bank

RBL's rich valuations, at 3.5 times its FY20 estimated book, is similar to HDFC Bank's, which continues to remain among the most expensive banking stock for its ability to maintain a clean loan book

When RBL Bank (RBL) was listed close to three years ago, investors had said that it stood a good chance to become the next HDFC Bank-like franchise. 

A look at some data points throws up some interesting facts. 

For instance, RBL has maintained a quarterly loan growth rate of 30-35 per cent consistently for nine quarters, a trend that reminds investors of HDFC Bank’s consistent growth. 

The January-March quarter (Q4) will be the fourth in which net interest margin (NIM or profitability) has been upwards of 4 per cent — another striking similarity between the two banks. 

RBL’s rich valuations,