Yes book value is increasing because of the cash coming on Bank’s book.
Anyway adding on to earlier point, don’t consider degrowth in EPS on Q-o-Q basis. Need to wait one year till operating leverage kicks in because branches have increased aggressively recently and it’s difficult to approximate the next 2 years future (for us retail investors).
If one wants to use EPS growth to check Return on investment (for shorter horizon of 1/2 years), PSU banks are much much easier play as NPAs are going down, branches are not increasing and their is wholesale loan growth.
We can easily approximate how PSU Banks will be doing in next 1 year (assuming no fraud happens)
Disc: Invested. This is not a recommendation.
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