The bank seems to be on the right trajectory, but there are question marks on the pace of improvement. Vv is now saying RoE of 13-15 percent by FY25 i.e. two full years from now. This is in the up cycle when other banks are in the 15-17 range already. Costs won’t be coming down dramatically because branches are being opened for necessary deposit accrual.
I understand that they can’t be compared and branches are long term investment, but it does beg the question what possible valuation this bank might get in the next 2-3 years.
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