Just a food for thought (as pointed out to me by a very friend), Running a financial institution has to be about prudence, systems, integrity of the management and their track record and a vision for creating long term wealth. It is important to note that in a financial institution accounting profits can be very deceptive (PSU banks). Look into provisions, write-offs, of course asset quality but less from numbers and more from experience, scuttlebutt. A few calls to the sales reps will help you in understanding the asset quality much more than what the numbers tell you. Also the NPA numbers that are emerging now are a result of bad lending 2/3 years back and look them in that context, high growth can be used as a façade to cover them. Try getting an LAP, try getting loans for other purposes like heavy machine financing etc. and see the response. Visit a branch look at the kind of applications rejected, ask questions regarding %rejection vs approvals, look at the incentive of guy who is giving out loans also see if he is going to be there to collect the loan. Understand the attrition of people at sales level. How many of them leave in 2 to 3 years before the collection period?
I do get a very uneasy feeling when the management of a lending company comes out focusing too much on growth. In my opinion a non prudent fast growing lender is akin to a Ponzi scheme where the very high growth in loans presently overshadows the NPAs generated a few years ago but this can only happen as long as the music lasts.
Disclosure: Not invested in Capital First. The above views are generic and I have been using them in evaluating all lending companies.