Hello, the FY23 results are upon us. It is perhaps the only Bank in the Pvt and Public sector banking universe which showed little or no earnings growth.
But my guess, this is one bank management which speaks straight and clean. It said the following and I infer the below
- Likely our IT systems do not catch all the details on each client account. Therefore, we are digitizing the process getting in Boston Consulting Group. Will take 2 qtrs to come back up - we know when the consultants come in they do not go easily (similar to carpenters in our house). So FY24 is the year of re-wiring or repiping
- Given the conservative bank CUB is, it is likely they have created excess provisions all around
- The digital strategy would start delivering results - similar to L&T Finance change that one sees
- CUB would start nipping at cross selling in other products to existing clients. Big market but i hope they start taking it seriously. They finally are starting to see some increase in Insurance fee etc
My read is market will recognise the stock much latter in the day.
Disc: Invested