the confessional of bad loans is coming nigh thanks in large part to the previous RBI statutory framework
managements denial in under reporting NPA, slippages and under reserving has a date with destiny when the loan book shrinks and growth no longer covers sins of omission and commission
on average psu bank stock prices trade at a 45 % discount to reported book value, startling for any indusry (average share price 95 v average book value 170)
another view is the market believes neither management nor the government's ability for financial alchemy
the suggested arbitrage is not to but the deeply discounted (75%) and sell the least discounted (2-10%), but just the latter
managements denial in under reporting NPA, slippages and under reserving has a date with destiny when the loan book shrinks and growth no longer covers sins of omission and commission
on average psu bank stock prices trade at a 45 % discount to reported book value, startling for any indusry (average share price 95 v average book value 170)
another view is the market believes neither management nor the government's ability for financial alchemy
the suggested arbitrage is not to but the deeply discounted (75%) and sell the least discounted (2-10%), but just the latter
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