Thanks Deepak for sharing the letter.
If someone does not want to read the whole letter below are few quick takeaways.
- "For instance, we plan to grow our branches by only 10% annually but grow deposits by ~25% CAGR until FY27. Many digitisation efforts are under implementation.
- Together, we plan to reduce the overall Cost to Income ratio by about 800 bps from 72.9% in FY24 to 65% by FY27 and continue to improve from there."
3)"Because the foundation that has been laid, we expect our Opex to grow only by 19-20% this FY25, while income is expected to grow by about 23-24%. - We expect the phenomenon of Opex growth being lesser than the income growth to play out consistently over the next few years. This will structurally improve the profitability of the Bank. Based on this, we are planning for our PPOP% to reach around 3.3-3.5% of assets, on a core basis, in five years from levels of 2.25% in FY24."
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