REPCO home finance


(Anindito Sarkar) #412

There are so many IAS officers in board. Also a lot of key people from PSU banks. So how do you rate the management/board quality? Can govt directly interfere in day to day or strategic decision making?


(Sami) #416

There is plenty of room for growth and improvement in funding cost

  1. Commercial Banks borrowing at 72%, even bringing this down to 50% would reduce funding cost and improve NIM, NII and RoE. Good response for Repco NCDs in capital market and CARE AA rating can help replacing Bank borrowing with NCDs and CPs.

  2. Branch expansion rate in Gujarat is encouraging where GURH is dominant player. Sowing the seeds for the future

  3. Average business per district can grow significantly ( deepen its presence
    in existing geographies) in states like Gujarat,AP,Telangana and Karnataka

  4. CAR at 20.8%, no need to for any immediate equity dilution


(chulbul9) #417

One thing that caught my eye was the ratio of compensation from Esop’s to the actual salary - it is a multiple of the cash compensation. Maybe an effective way to tie in key management personnel. Members can decide if its good or bad.


(Sami) #418
  1. Employee Benefit Expenses=~41cr (from profit and loss statement)

  2. Equity Shares issued and allotted pursuant to
    exercise of stock options under ESOP=183790(newly issues shares under ESOP) X 800 (market Price)= 14cr

Esop’s to the actual salary is almost 1/3 only. Am I missing something?


(chulbul9) #419

In the case of senior management compensation, it is the other way round. Part of the disclosures in the AR…


(Saji John) #420

There are unconfirmed reports about CBI raids in Repco home finance. Anybody has any info?


(Saji John) #422

A tweet https://twitter.com/shyamsek/status/784784209512660992


(indumouli) #425

What kind of huge scam would trigger CBI raid? If there are any scam in a Public listed Housing finance company there are SEBI, ED, IT etc are there. How CBI would involve? I guess for any CBI raid Court order or Govt initiation required. How CBI will raid out out of the Blue?


#426

It is the bank and a branch manager as per Tamil media. Repco bank reports to home ministry and that creates regulatory and oversight deficiencies but common among PSU banks

https://translate.google.co.in/translate?hl=en&sl=ta&u=http://www.dinakaran.com/Latest_Detail.asp%3FNid%3D251053&prev=search


(Whipsaw) #427

CBI raids are undergoing at the following people residences: MD Varadarajan, T Nagar Branch Manager Shekar and Ashok Nagar Branch Manager Kannan.


(CommonMan) #434

The issue is with Repco bank. It was about receiving deposits from nominal members,that’s the issue.

http://m.timesofindia.com/city/chennai/Unauthorised-deals-HC-issues-notice-to-Repco-Bank-RBI/articleshow/53834794.cms


(Gurjot) #436

The TOI article shared is more than a month and a half old. At this stage - Not seen any evidence to conclusively confirm Repco Home Finance’s involvement in that case (I always believe in innocent till proven guilty)

Also, there must be some recent development to justify a CBI raid on Repco Bank/Repco Home Finance (assuming it’s true)


(CommonMan) #437

Usually these CBI raids are related to bribery case at individual level. No reason to doubt a scam.
Such a raid happened in 2010, involving LIC . Initially some went head over heels calling it a big scam. Turned out to be nothing. Zero impact on the numbers. Stock briefly corrected then it jumped 5X.

Waiting for a good price.


(Sanjay Meena) #438

(DR ANKUR A KOTHARI) #439

CBI raids Repco officials’ homes

The Hindu9 Oct 2016STAFF REPORTER

CHENNAI: The CBI conducted searches at the houses and offices of R.Varadharajan, MD, Repco Home Finance Limited and some key officials of the firm on Saturday. Sources said the raids were conducted following registration of a criminal case against the officials based on a complaint lodged by Coimbatore-based Durga Agency to which RHFL had given loan.

CBI sources claimed incriminating documents were recovered during the searches in Chennai. Officials of the RHFL could not be reached for their comments.

RHFL began operations in 2000 and is a public company. Headquartered in Chennai, the company is promoted by Repco Bank, a Multi State Cooperative Society, which owns 37.14 per cent of RHFL, while the balance is held by domestic and foreign investors.

Sources say incriminating documents were recovered in Chennai


(Haresh Nagpal) #442

I think its related to Repco Bank as media has reported two branches and Ashok nagar - both have branches
TNagar- only bank has branch… Not HF…so 99% it is repco bank .Checked branches at website.


(Manish Maheshwari) #443

Looks like it is Repco Home Finance Limited


(CommonMan) #444

I spoke to a senior investor from TN, the issue behind the raid is about the deposits in Repco Bank. Same as the one that appeared in the TOI article. Its not related to home finance.
http://m.timesofindia.com/city/chennai/Unauthorised-deals-HC-issues-notice-to-Repco-Bank-RBI/articleshow/53834794.cms


(Aksh) #445

The article in the Hindu clearly mentions the current CBI raids involve RHFL. Why to live in denial? Recently I visited to inspect a property put on auction by RHFL and I didn’t feel quite right about the checks and balances that should have been put in place by a home lending institution like RHFL. The current development only validates my apprehensions about investment merits of a semi Govt/Govt Institutions.


(mukesh) #447

Aksh what was wrong…can u pl share ur observation.