vishal, thats another way to look at things.
I had posted the hypothetical situation just so that people obsessed with price to book can have an alternative way of thinking.
Regarding dividend being reduced theoretically it can happen but looking at past track record it looks unlikely
Best way of raising capital if at all it is needed is to dilute capital at high BV>
But for Gruh, ROE is nearer to 30% and cost of capital (debt) would be close to 8-9% so I would not be too worried about leverage unless things start turning sour and NPAs start a rising trend.
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