Agree with you on that point, however kotak is now operating at lowest credit costs, highest nims and fee income is also strong. Do you see further scope of these parameters driving roe?
In my view best banks can operate at 2-2.2% roa sustainably, it makes sense if bank is overcapitalized is looking to grow fast or acquisitions. However i wanted to know what can be the steady state capitalization levels, roe and roa for the bank to calculate its terminal value.
say 5% terminal growth, 15% roe, 66% dividend payout etc are these fair assumptions
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