ROE of IDFC F Bank increase has no link with IDFC Ltd’s merger. Since IDFC’s entity shall get extinguished, it’s ROE angle doesn’t impact that of bank.
My hypothesis is : ROE of the bank shall improve going forward basis the following:
- Operational leverage kicking (26% of branches opened in last 18 months)
- Focus on Guidance of FY’25’s Cost to Income ratio target
- Run down on high cost long term borrowing
- Growing Credit Card & Wealth Management business.
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