The latest figure declared on 21 Apr by RBI on banking deposits and loans, showed an increase of 0.6% and 0.7% respectively compared to previous month figures. This is encouraging.
The Indian economy and bank balance sheets have never been better than present moment and by all indications economy is going to do very well in fy 23-24. Consequently banks will also do well especially some of the private banks like HDFC, ICICI, Axis and IDFC first. Due to its small size IDFC should be able to grow its assets comparatively faster for next few years.
Of course we have to keep our fingers crossed against the possibility of unexpected provisions and adverse events like covid.
The turnaround has got delayed by about 2 years due to unexpected loan defaults and covid. Let us hope that future is less eventful.
My understanding is that bank valuations are mostly dependent on ROA and ROE.
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