Yes, quite a move yesterday and a decent follow-up today too. I am not a technical trader and primarily look at price-volume action to just understand what others think. While the results were good, it was not so crazy good either. I think the key thing is to do with their business model which is not the same as most retail-focused banks. I can’t say for sure, but in the current environment, this feels like a bit of a flight to safety move as well.
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9b4374c7-9f3f-46a1-994c-887193bfbdd8.pdf (2.5 MB)
Latest CUB results. Good results but in my opinion DCB Bank performed much better in comparison to CUB. On asset quality, gross and net NPA decreases Q/Q and Y/Y basis. Why still provisions increased is yet to understand? Bank grew its business almost by 12 % when GDP is languishing on approx 6%.
Holding both CUB and DCB. Yet to hear concall which will give more clarity.
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Missed Mr. Kamakodi in the conf call (until the end) who generally gives a good qualitative view as well to questions, but Mr. Vijay Anandh covered well and was on top of the numbers!
Overall, pretty good across the board - quite a well run bank indeed. I just wish they are a bit more ambitious on their growth. While the growth numbers are good, their strong operational focus in running a tight ship and keeping slippages down seems to constrain higher growth. Maybe secured retail can boost the growth a bit more, but they are very careful to under-promise there. Let’s see if they can over-deliver on that. It was also good to hear that the MSME book is not seeing stress as things stand. Beyond the implications for the bank, it’s a good sign for the economy too.
Don’t know how the stock will do going forward, but the bank is doing quite well, and relative to most other banks, much better too.
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