When the bank raises capital at 2.5 times P/B which is very likely, the book value will increase just by the capital raising exercise itself.
What we need to watch out for in the next two years is the increase in book value due to
1.) PAT increase due to operating leverage.
2.) Capital raising. IMO this is not bad if not good at 2-2.5 times book value. Although the equity will get diluted, the bank will raise them at a premium to book value.
I agree that cost to income ratio is a pain point. But this is coming from it’s business model itself. Vaidyanathan sir clearly attributed the high NIM to their operating expenses. Also this will stabilize over a period of time when they have good no of branches and when the new businesses they are establishing start becoming profitable.
Disclosure: Invested in holding company which is my largest holding.
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