IDFC First Bank Limited


(vaibhav) #149

Of the total provisions of nearly Rs 601.38 crore in second quarter, provision of Rs 344.48 crore is due to reclassification as per regulatory provisioning norms, Rs 197.13 crore is provision against investments including mark to market provisions in accordance with RBI guidelines, the bank said.

NPAs are reduced (nnpa 0.59%,gnpa 1.63%) which is good to see. Operating performance has been bad(high other expenses qoq) … Can it be partially put down to old management having no incentive… As they would be leaving in a month and handing over the keys to Mr. Vaidyanathan?

Disclosure : invested and looking to add further.


(vaibhav) #150

Q2 investor presentation -

Again posting Mr. Vaidyanathan’s interview which would be taken as how the new management assesses growth road-map for the future -


(ItosLemma) #151

Whats in a name ? Not sure of the value add, except for adding to painting charges in all the branches and other retail outlets.

IDFC Bank to be renamed as IDFC First Bank


(rupaniamit) #152

Mr. V. Vaidyanathan has proposed to board to share almost 10% of his personal holding in CF with senior colleagues, close family members, and family support staff. Shows the self-less character of the leader who is truly passionate about building an eternal organization by moving to banking platform and not after any monetary gains. He has not only shared his wealth with existing colleagues but also with former colleagues. This will just increase the loyalty and respect from the people that work closely with him. And as we know that loyalty goes long way in maintaining culture for an eternal organization. A special leader on the verge of doing super special things.

Disc: invested in CF and accumulating in SIP mode. Views may be biased.


(amitbansal01) #153

Impact of this new scheme declared by the Government today for MSMEs on IDFC Bank ?

Capital First (Mr Vaidyanathan) has been targeting the MSME sector specifically with their digital / fin tech approach which is a big USP in retailisation of the IDFC Bank loan book post merger.

While I have not gone through the fine print, the new scheme announced by the government provides the following :

  1. Quick approval (likely under an hour)
  2. Interest rebate - around 2% rebate for loans up to 1cr for GST registered MSMEs

Apparently public sector banks are pulled in for this purpose (not sure).

The question is how badly will it affect IDFC First Bank which had planned to aggressively target this space ? My guess is that the lure of interest concession / rebate (which has a direct impact on the MSMEs financial position) would impact the growth projections planned by the bank. But will need to wait and watch how the story unfolds.


(Bhambri3) #154

NCLT approves merger


(Dharmeysh Ashar) #155

As always, Mr. Vaidyanathan seems very enthusiastic about what he wants to do.


(sarvajeet) #156

He has had two good successes so far : being part of core team that scaled up ICICI Bank , and building Capital First from scratch. Most entrepreneurs are one-hit wonders!


(Dharmeysh Ashar) #157

Yes. In ICICI BANK he played his part in building retail liabilities and in CAPITAL FIRST he built retail assets.


(arunkp) #158

IDFC Banks new interest rates , Mr.V have started his work…

Balance in Rs. Interest Rate (p.a.)
Up to 1 Lakh 6.00%
> 1 Lakh to 2 lakhs 6.50%
> 2 lakhs to 10 Crores 7.00%

(ramanhp) #159

I am hoping they will have a better website soon. This one looks pretty plain and doesn’t gives confidence a bank site should. Looking forward to an effective re-branding.


(Chemist) #160

“If you end up owning a fantastic business, then plan to hold it for a long time. And prepare yourself for a roller coaster ride. If you have chosen the right business to own, the ride will be worth it in the end.” Prof Sanjay Bakshi


(James Sebastian) #161

On allotment of IDFC Bank shares to Capital first Holders.

Disc: Invested in CAPF.


(James Sebastian) #162

Shareholding looks as below, post merger

But I noticed that V Vaidyanathan and V. Vaidyanathan (In capacity of Trustee of Rukmani Social Welfare Trust) are listed among Public shareholders and classified under " Details of the shareholders acting as persons in Concert for Public along with another 4 more parties. Can someone explain why he is treated as Public and what it means acting as persons in Concert for Public means ?


(rupaniamit) #163

Example of Acting in Concert

It was alleged that Bill Ackman, leader of hedge fund Pershing Square Capital Management, and Michael Pearson, CEO of Valeant Pharmaceuticals International, acted in concert to try to purchase Botox maker Allergan Inc. in 2014. Ackman’s fund independently accumulated a large position in Allergan and then teamed up with Valeant to bid for Allergan. Allergan, which did not want to be acquired by Valeant, and two state pension plans sued Ackman and Valeant for violating securiities laws on the grounds of insider trading. In the meantime, Allergan began putting together a deal with Actavis Plc to thwart efforts by Ackman and Valeant.

Actavis and Allergan did end up consummating a deal in March 2015, which delivered a huge investment gain to Ackman. He squandered those gains and more, however, after he reinvested the proceeds into Valeant, whose enormous debt levels and alleged fraudulent accounting practices sent investors fleeing. Valeant stock had soared over $250 per share in July 2015; when Ackman sold his shares in March 2017, they were trading at around $11 per share. Adding insult to injury, Ackman was forced to finally settle the outstanding lawsuit against him, paying $193.75 million. Valeant agreed to pay $96.25 million, the other portion of the $290 million total settlement. Acting in concert with Valeant was a painful experience for Bill and Michael.

Source: https://www.investopedia.com/terms/a/acting-in-concert.asp

@james_kerala - since this is not a hostile acquisition/takeover, IMHO “acting in concert” may not apply to IDFC and Capital First case.


(Ranga Kiran) #164

(arunkp) #165

(Ranga Kiran) #166

(krrish seth) #167

On change of guard idfc bank might be a good bet; but next hdfc bank is just a speculation right now. It’ll lot more than just a change of guards. First of all they have to work very hard on casa. There is no doubt about the capabilities of mr. Vaidyanathan, the same story emerges after the demerger, rest is history. Let’s see how new team in the helm executes.

Disc. invested in different levels


(S_Banerjee) #178

IDFC First Bank Q3: Net Loss Rs 1,538 Cr. Is this due to merger? How the calculation done and why this kind of numbers reported. Anyone did any analysis please explain.