The loan book has increased only in last two quarters. Having cleaned up the balance sheet and restructured the bank business model, the main thrust should now be on increasing the loan book through quality lending keeping the NIM around same level. By the time loan book crosses 2 lakh crore, the cost to income ratio will begin to look attractive, which would push the market capitalisation. It should be possible by Q1 FY 24. That would in turn enable the bank to reach a fair reverse merger along with additional capital, making it stronger. By all appearances the bank is going in the same direction and the market has also taken note. When Q3 data on deposits and loans comes out on 1 Jan 23, it will become crystal clear.
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