ValuePickr Forum

IDFC First Bank Limited

(Pratik Chandak) #257

So, instead of looking at ROE one should look at ROA and the leverage seperately… It is fine if ROE is slightly lower due to lower leverage…

Instead of comparing ROE, one should compare the ROA and leverage…

But in Morgan stanley report where they have given the target of Rs.30, they have given a very high weightage to ROE…

1 Like
(yourraj) #258

Hitesh ji can’t IDFC Ltd is better bet than IDFC Bank >it has better book and also have stack in the IDFC Bank.

(Hitesh Patel) #259

@yourraj

When the chart pattern is as clear and classical as it is shown above for me it becomes a strong buy based on technicals.

I think fundamentally the picture will emerge clearer after 4-6 quarters of Vaidyanathan being in charge and we see how things are moving forward. Till that time all the number crunching we do is all guesswork and prone to errors.

Regardging IDFC Ltd the valuations may very well be attractive as you mention (I havent checked it to either confirm or reject it) but as long as the ticker doesnt show some strength as shown by IDFC Bank I dont want to consider it. In both IDFC and IDFC Bank it is very difficult to project any numbers confidently and hence I am not even trying.

For me a technical pick should have a clear cut pattern, visible stop loss and targets and sufficient volumes to take a position and exit in profit/loss if needed. There are huge volumes traded on IDFC Bank and so volumes atleast is not a concern for me.

7 Likes
(Pratik Chandak) #260

I wanted to open an account with IDFC First bank… so registered for the call back from them on monday… but didn’t received any call from them… So… registered again for the call back on Wednesday… again no responce from them… they just gave me reference id and did nothing…

So… tracked my reference id from their helpline number… then finally they arranged an executive who visited my home to open my account with them…

It took 1 week for them to arrange an executive… Frankly speaking… i expected better service…

Fine… it was acceptable till this… bt… what I found a real problem is… they have only a 1 product to sell to me… a saving account and that too… one varient where I was required to maintain Rs.25000/- average daily balance… that was on the higher side compare to their competitor… They didn’t have even credit card for their customers…

I enquired to their executive about the changes after merger… he said few things changed… but his main point was… earlier… it was easy for them to convert a walk-in guy into a customer… bt now people just inquire abt the account after looking at advertisement of 7% but it is difficult to convert them as 25k is too high balance to keep into savings account… and you knw… the FD rate below 1 year is also 7%… don’t know why…

Having only one saving account with min balance of 25k and non maintenance charges of up to 400… both are on the higher side compare to competitors…

Only positive is their goodies with this… unlimited atm transactions… cash back on book my show… free lunch at airport… etc…

Bt still… i doubt on their strategy to increase CASA unless… they are planning to develope it…

1 Like
#261

They are introducing 3 different kinds of savings ac from April and we can convert to an account which requires lesser min bal. I think this will start along with their new website which comes soon. Source: idfc executive who opened my sb ac

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(Pratik Chandak) #262

Thank you Vinlive for the information… keep us posted about the latest updates…

also came to know that IDFC First Bank which was earlier branch of IDFC Bank but not capital first are going to introduce new loan products like auto loan, home loan, etc… this was the change in branch which was the branch of IDFC Bank Ltd earlier…can anyone post the changes in capital first branches?

(Rohit) #264

Bhailog! This is not Yelp, please stop sharing your customer service experience at IDFC first bank. This is an investment discussion page, please only post if you have a valuable insight about the business that you would like to share.

Thanks

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(vaibhav) #265

A picture from the Morgan Stanley report shared above showing liability breakup of various banks and why it’s important for idfcbank (specially post merger) to raise retail liability for stability of the organization

Disclosure : invested.

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(Investor_No_1) #266

This is very much known and expected. Btw I was checking charts for last few years…would have been better off picking up the big Kotak or HDFC or even Axis bank…the doubled quadrupled etc etc while I kept looking for new ideas…maybe they become 20 times while my new ideas remain challenged. Makes me wonder that simple investing In a leading bank for last 10 years … a no brainer… would have yielded my expected returns… question is will this repeat in next 10 years…

Disc: invested

5 Likes
(Koushal.vv) #268

Guys, Seems like the new website of the bank is here.
The old website sucked, new one is in similar lines to Capital first, I hope they make is fully working with lot of updates.

https://www.idfcfirstbank.com/

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(vaibhav) #269

Capital first btw has highly rated android app as well. Just checked, rated 4.4 by 48k users compared to Bajaj finance app rated 3.9 by
79k users on playstore.

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#270

That is just an empty domain with some placeholder text and images. Been like this for many months as the website is still under development. Existing website dashboard and entire design is very basic… I too hope that the new website will be in the lines of capital first.

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(arunkp) #271

Rating Update

http://www.careratings.com/upload/CompanyFiles/PR/IDFC%20FIRST%20Bank%20Limited-03-28-2019.pdf

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(topdog) #272

with very low CASA, and with inherited NPA, it will be a while before we see any strong performance in terms of NIM leave alone profit. Poor management of the previous IDFC Bank will also require change in branch culture. Lot of work

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(grohal) #273

IDFC Bank Ranked 5th in Consumer survey!

(dgoel25) #274

I understand Goldman has downgraded IDFC bank to sell with target of 45. Has anybody got that Goldman Sachs report

(acido255) #275

But KMPs bought shares few days ago

(ramanhp) #276

Went to an electric goods store in Patlala, Punjab. Competing with on spot credit by Bajaj Finserve and HDFC, IDFC First bank’s employee said that there is a visible change in the Bank’s aggression after Vaidyanathan took over. In Patiala for example, a bank branch means that customers who are not internet-savvy can visit the bank for completing formalities. Also, their credit approval is swifter and now competes with Finserve in loan disbursal window.

4 Likes
(Koushal.vv) #277
(vaibhav) #278

Investor presentation:

Casa showing good trends for the future, growing from 6400 cr to 9100 cr in 3 months i.e. 2700 cr (42%). Savings account deposits grew ~54% from 4398 cr to 6750 cr. in the same period.

Gnpas increased from 1671 cr to 2136 cr. Will have to listen to the management for outlook on asset quality.

Retail funded assets grew from 36,200 cr to 40,800 qoq while wholesale funded assets de-grew from 56800 cr. to 53600 cr.

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