Vaidyanathan seems to be giving a message to the shareholders : “The bank is doing well, It will do even better in next 5 years. For proof we give you the guidance no 2.0. Those with long term investment horizon should continue to stay. He even gave the projected estimate of PAT in 5 years at 12000 crores.”
This would translate to roughly 4 times increase in existing market capitalisation, which would make an excellent return. He also ruled out any ‘definite requirement’ of additional capital as the bank will be slowing down to 20-22% compound growth which could be supported by the recurring profits.
I think this is a very fair and transparent approach by the bank management where they have made their intentions for next 5 years very clear. We have already seen the competence of the bank management. We can also guess the performance of the Indian economy for next 5 years provided country remains politically stable and is able to avoid getting into any major armed conflict.
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