Loan growth has surpassed deposit growth and Loan/Deposit ratio seems on higher side as compared to last few years. CAR is also reduced. Ability to raise deposits is going down even after increasing branches in Rural areas.
Probably it will take some time to reflect in deposits.
These could be the concerns. Also NIM will take some time to go to reasonable levels. GNPA has started moving up but should not be a major concern.
They have managed to report very good Net Profit growth in spite of all these concerns which is a Positive. I believe Management may able to overcome some of these concerns but will take few quarters.
Disclosure : invested since 2011 but have been prudent in booking profits from time to time.
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