Cost to income would decrease only when the bank stops increasing branch count qoq.
Absolute GNPA numbers have actually decreased YOY and only marginally increased QOQ. PCR has reached 85% which is great. NIMs have improved. Fundamentally the bank is in a strong position.
At 12,000 cr PAT, the bank would command a mcap of 2.4 lakh crore at 20 P/E. We can expect 3-4 times increase in share price in the next 5 years.
For me it is a steady compounder from now on. I would cut my position in IDFC (almost 50% of my portfolio) after merger which is a trigger for the stock.
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