Isn't RBL Bank severely undervalued?

Yes, I know this is far from the best-run bank in India. Yes, it saw a dip in collection efficiency for microfinance loans (an industry-wide issue this quarter). Yes, it’s involved in unsecured retail lending. ...but the **price-to-book ratio is around 0.6.** The fundamentals have steadily improved since the new management took over a few years ago. They’ve reduced risky wholesale lending, diversified the loan book, and increased the share of granular deposits. Despite a weak quarter, the bank remains profitable. Additionally, they earned approximately ₹163 crore from the Dam Capital Advisors IPO proceeds. What could possibly go so wrong that these price levels aren’t attractive? What concerns about this bank are not already priced into the stock? Could the fact that nobody is talking about this stock, perhaps because they’re too afraid to touch it, actually be a positive? https://preview.redd.it/8ph89er0emae1.png?width=888&format=png&auto=webp&s=bd71564ab2b035a7d246663dd99edeb331d786a6 Disclaimer: Not a recommendation. [Emkay Research Report on RBL Bank](https://trendlyne-media-mumbai-new.s3.amazonaws.com/uploaded-documents/fundamental/4685/f83a25d70da24117923813deef3f30f1-01122024.pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=AKIAUABWFMACZL6M6VIP%2F20250102%2Fap-south-1%2Fs3%2Faws4_request&X-Amz-Date=20250102T172016Z&X-Amz-Expires=7200&X-Amz-SignedHeaders=host&X-Amz-Signature=7c688be9057da1b9fcf6a75deb73c58db24cc449b8cb3179f3b30ad8b774a183)