1) it's been over 6 years, while bank hasn't been able to normalize cost to income ratio - please look at other expense breakup in ipex to have more insights
2) VV has been changing C2I goal posts since 2 years( refer to concalls starting q2FY23 till date)
3) since roe is less(primarily because of high c2i) while growth of loan book is higher than roe, it's CAR continue to deplete every 3-4 qtrs and hence frequent fund raise has led to very high equity, and this will continue till roe doesn't increases above growth or growth doesn't slows down below roe
4) past 16 qtrs, whenever a provisioning is taken as contingency, it's has silently been pushed into retail book in following quarters by writing it back in the segment while creating a new one against retail assets, while showing no net impact in quarterly results while the blame being continuosly given to legacy book.
5) thesrecent provision of toll account - has been there since 5-6 years on the book and didn't needed any provisioning, you will see it being written back and adjusted into other business vertical
6) VV never answers retail investors questions properly and tell them to shift to other shares if u r unhappy - no minority protection here
7) whenever bank prices fall, he gets issues lot of esops, which he sells off for some or the other reason when the prices are doing well.
8) their actual NIM is not that high which is being quoted because their DSA agent fee is below the NIM calculation
Key things to note in history of IDFC first
1) it's been over 6 years, while bank hasn't been able to normalize cost to income ratio - please look at other expense breakup in ipex to have more insights
2) VV has been changing C2I goal posts since 2 years( refer to concalls starting q2FY23 till date)
3) since roe is less(primarily because of high c2i) while growth of loan book is higher than roe, it's CAR continue to deplete every 3-4 qtrs and hence frequent fund raise has led to very high equity, and this will continue till roe doesn't increases above growth or growth doesn't slows down below roe
4) past 16 qtrs, whenever a provisioning is taken as contingency, it's has silently been pushed into retail book in following quarters by writing it back in the segment while creating a new one against retail assets, while showing no net impact in quarterly results while the blame being continuosly given to legacy book.
5) thesrecent provision of toll account - has been there since 5-6 years on the book and didn't needed any provisioning, you will see it being written back and adjusted into other business vertical
6) VV never answers retail investors questions properly and tell them to shift to other shares if u r unhappy - no minority protection here
7) whenever bank prices fall, he gets issues lot of esops, which he sells off for some or the other reason when the prices are doing well.
8) their actual NIM is not that high which is being quoted because their DSA agent fee is below the NIM calculation
Happy to have a longer discussion.
Thanks sir for detailed information very helpful please keep doing sir 👍❤️
Useful