Thanks, Deepak, for the detailed reply. I really appreciate the effort you’ve put into this. I was mistaken in thinking they meant a high ROE for the whole bank; it was only for the retail lending portion. Your explanation was spot on. Thanks again.
Regarding the activity on this forum, I feel people see potential in this bank. I believe it is very undervalued, which is why many retail investors are buying it. Last quarter, they had an NII of 4700 crore. If their cost-to-income ratio is around 45%(like the other regular banks), they would be making approximately 2300 crore in net profit per quarter (around 10,000 crore per year). Think about that figure. Unfortunately, because the ROE is low, all this potential is not reflected in the stock price.
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