A popular research site says,
At the current price of Rs 503, the stock is attractively valued at 1.0 time our estimated FY10 adjusted book value. Sustenance of a healthy current and savings account mix and little deterioration in asset quality also reiterates the operating efficiency of the bank. Going forward, with technological upgradation and aggressive growth strategies, the growth prospects of the bank appear enthusing. Having said that, excessive reliance on treasury income and inability to grow its fee income base are our lingering concerns with regard to the bank. We maintain our positive view on the stock.
At the current price of Rs 503, the stock is attractively valued at 1.0 time our estimated FY10 adjusted book value. Sustenance of a healthy current and savings account mix and little deterioration in asset quality also reiterates the operating efficiency of the bank. Going forward, with technological upgradation and aggressive growth strategies, the growth prospects of the bank appear enthusing. Having said that, excessive reliance on treasury income and inability to grow its fee income base are our lingering concerns with regard to the bank. We maintain our positive view on the stock.
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