I am new to DCB bank, was going through the latest investor presentation and the the CoF is 6.61%
How can they be competitive in the mortgage loans that make up 40%+ of their loan book? Bandhan bank with a much lower CoF said in the latest con-call that their affordable loan division(erstwhile gruh finance) is facing still competition from public sector banks. They operate in western india and must have overlap with the DCB bank customers. Wouldn’t be a big red flag as they would not be able to offer competitive rates to 40%+ of their loan book?
https://www.dcbbank.com/pdfs/Investor-Presentation-Q2-FY2020-21-31-Oct-2020.pdf