CogThe drop in CASA is one thing to keep an eye on, but it doesn't appear to be having too much of an impact on net interest margin (NIM) as of yet, so I'm not too worried. If we see NIM dipping back towards 4.0% it will be more notable.On the other hand, if HDB is relying more on short-term borrowing as a result of the drop in cheap CASA deposits then your concerns would be at least partially justified (it was the drying up of short-term markets that caused a lot of the pain during the financial crisis). As for the P/B, yes, 3.9 is high, though not the highest we've seen for HDB and you're paying for quality here. HDB continues to put up 20%+ growth and maintains industry leading margins and asset quality.As I said, I'm not sure I'd be buying right now, but if one were to pay up for quality somewhere, you'd find worse places I think.
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