The bank is poised for a healthy loan growth and margin expansion, which should drive healthy earnings growth
There are levers for improvement in profitability which could play out over the next couple of years
Business growth has picked up and profitability is likely to improve
The plot that currently houses the Prince Aly Khan Hospital and residential houses will be demolished and reconstructed. A new, bigger hospital will come up on a site opposite the current location.
Asset quality stress seems to have peaked; operating efficiency set to improve
With the stock price correcting sharply by 60 percent from peak of Rs 200 seen in January 2020, valuations have turned very attractive and the bank is trading below book value.
What stood out for Raamdeo Agrawal this earnings season is the margin expansion on the back of commodity price collapse.