Will suggest fellow members to read through the following -
1.Amit Keerti has provided a crystal clear analysis of the company. The best part is that he has compared management’s commentary in prior quarters with latest result.
2.Company’s latest call transcript -
Sunil Tirumalai: Last question is how low do you see the Tier-1 ratio, at what level are you
comfortable before you re-capitalise again, thank you?
Sanjaya Gupta: To be very frank, the Board guidance is at about 10x lever to our Tier-I capital
we should start preparing ourselves to raise additional capital or go to capital
market and I think at about 11x to 12x lever of Tier-I capital, we will be raising
fresh capital and I think that should come in our sort of forward journey
somewhere in the last calendar quarter of 19 or the first calendar quarter of 20
and let us not forget that internal accruals are going to be smart for this Company
since economy of scales are playing up and I guess by that time our NOF should
be somewhere in the vicinity of INR 8,000 crore when we go to the capital
Koteshwar Rao: One last question in the last concall like it was being told like the ROA levels can
be maintained from 1.7 to 1.85 by the time we come back to market for the capital
Sanjaya Gupta: Give us eight quarters and we will be there. It is also the way the management
works, as I was saying if I would have not done the contingency provisioning, my
ROA is already 1.62%, but it is a conservatism that sort of makes us do what we
are doing because we do not want to be totally going berserk and calling out
great numbers and tomorrow because of cyclical aberrations or something, we
have nothing to fall back upon.