Disagree largely.
NPA increase is marginal, not much to read into at this stage. RoA drop also marginal, and largely because the A in RoA has grown sharply with AUM, but the R in RoA will take time to come through as these assets mature.
Rating upgrade will take some time to play into the cost of funds. Also once interest rates start decreasing, which is not too far away, I expect NIMs to expand in the short term.
Only unknown is RBI’s disposition to and any modifications of colending norms.
Disclosure: Invested from 170s. No transactions in last 30 days. May add sone if it corrects mlre with the broader market.
| Subscribe To Our Free Newsletter |
