South Bank seems to be a top buy now given the follwong:
1. Post NPA Sale of ₹1800-2000 cr it's a zero NPA bank.
2. I am assuming they have sold the NPA at 50% haircut, hence the realization would be 900-1000cr. 3. The bank has outstanding provision of ₹700 crore on the books, hence further loss of ₹300-400cr needs to be booked.
4. Post all this I am assuming the bank should have book value of ₹20-23.
This makes it probably the only bank, available at 0.9-1.1x book value and expected EPS OF ₹4 +-₹1 (FY19).
I don't see any reason for it to quote at these valuations and foresee a easy doubler in next 1year and much higher valuations in times further ahead.
Disclosure: invested(5%), and will probably increase exposure next week.