Heard the whole concall and found Praveen kutty quite energetic and frank and very confident person. He also says that he is not happy with the way, “We’ve been acting like an NBFC—disbursing loans and walking away. That has to change.”
These are not just HL or LAP customers. They are full banking relationships. We must serve their savings, credit, insurance, and trade needs. What really was a surprise was the small ticket secured DAs… these were cherry-picked customers, yet they underperformed."
The bank uses DA as a sandbox to test asset classes (e.g., school finance, unsecured business loans). Some past experiments (e.g., CV loans) didn’t work out well, and now secured DA showed similar stress.
We try, validate, and either scale or ditch a product. This quarter reminded us again—some experiments can fail.
We’ll continue to experiment, but this quarter is a reminder to manage even cherry-picked pools cautiously."
Disclaimer: Taken help of AI, to write the post. Still confident on management worthiness.
