When the Q4 FY 23 came up with a profit figure of more than 800 crores, the thought crossed my mind that it may stick out and make the upcoming quarterly performances of fy 24 look flat. The story has played out the same way.
However if one looks at the bank performance of last 5 years then the management has met all the targets except cost:income ratio which is as well. The bank is rightly on track to open new branches and investing in technology. This year credit card costs should drop below breakeven point by Q1/Q2.
The bank looks much better and healthier than fy 23. I feel, till the time infra book is on the balance sheet, the provisioning will continue to give negative surprises. Hopefully by fy25 end or H1 fy26 infra should cease to matter along with high cost legacy borrowings. That would complete the job of restructuring the business model.
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