The banks growth seems good and as per the 2020 commitment of a turnover of 1,80,000 Cr, In this Q118 not so impressive growth with the NII and Loan book , The current turnover of the bank is around 94000 Cr so it says a 26% growth from here in 3 years that is a 26% CAGR in turnover in 2020.
The current ROA at 0.74% vs 0.76% in 2015-16 and ROE 10.24% . Asset quality seems to be deteriorating in this Q118 the GNPA and NNPA have raised with increase in provisioning, AS per the managements guideline if NPA are contained below 2% in Q418 then i would expect a 44500 Cr advance by then and a NPA of just 900 cr (J.A Assumption) which will then improve my Book value and return ratios with lesser provisioning and Written backs if any.
Current 13.30 % CAR looks well capitalized but with improved returns i would safely assume that by Q418 the banks CAR will improve if the NPA's are resolved. The banks CD ratio is just 68.44% which i could say is under loaned which should be improved to generate more Interest.
Adjusted Book value for the bank for Q118 is at 138.5 which and currently the stock trades around 160 levels, seems to be fairly priced as the ROE is just about 10.2% with above said commitments lets hope the bank can deliver on the promise.
Disclaimer : Invested in KTK bank, Opinions are my own,
Source of Data from Q118 report , 2016 Annual report .