VV has steered bank from wholesale to retail focused book in relatively short span with a good tech stack. Good for management and customers of the bank, but off late his decisions against existing shareholders are baffling
On sponsorship - Assuming intention is to create brand image and catch eyeballs with indian/IPL team sponsorship. After few years of this brand building exercise, similar expense may not be required which will bring down cost. Thus long run even though it can’t be tangibly measured, it might be required to create brand awareness in a crowded market.
However, U can’t declare ur mid term goal is to target ~20% growth for next few years, raise growth capital from non-current shareholders(at a discount and huge quantum than really required) and then declare dividends to pacify a set of us. Whatever be the scenario, if bank is fundamentally strong, access to growth capital in a tranches manner 1-2 years down the line at a better valuation(as MFI loan book given its short term nature would have tapered out as a problem) would have been prudent decision.
Hopefully better sense prevails and dividend is not declared if growth is the focus, otherwise, if viewed through critical lens, it is a big red flag and shows inconsistent and subpar decision making
Disclosure:- Invested at lower levels