3560 is total provisions…not just for MFI.
But I agree, he is very aggressive on provisions…
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I think all things apart the PPOP is very disappointing.
What is this except microfinance thing. Lets ssay that he will have bumper profits next year in Microfonance will he still say except Microfinance?
Please show what would your Net profits be except Microfinance for the two years too. Lets take microfinance out from the equation, the NIMs will take a hit big time too. Like to like comparision should be through out not just for the parameters its showing better results unless you wont do microfinance business from hereon all together like Infrastructure book.
The biggest concern is giving a dividend of 0.25 rupees when they just raised 7500 crores for growth and ROEs that are really below par.
The core PPOP has actually come down this quarter for year on year comparision as against 20% growth in asset book.
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Have they stopped sharing that guidance 2.0 in their presentation which talked about ROA of 1.9 and PAT of 12000-13000 by 2029…?? 
.
They also promised ROA of 1.4 by 2027…
His prediction about this quarter ( Q4 of 2025) was ‘well above 1000 crore PAT’ …
So it is good if they have stopped predicting…
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I agree provisioning in banks provides tax shelter. Money remains in the bank and gets back into the lending cycle.
Provisioning is also has a bit of subjective angle becuse you can always do more and say this is a contingency provision or a floating provision or a covid provision. This of course lowers PAT .
There is a fine line here of . Bank managements that want to ramp up stock price in short term will under-provision and those that are only worried about it in medium term or long term will over provision. The second scenario helps compound book value better in the long term.
Icici has learnt this game from hdfc bank and now does it well.
This bank might give very good returns between FY27 to FY30. Pl explain why this line
Seeing current numbers, it looks like FY26 also won’t see much operating leverage.
- Given they’ve guided for 65% C:I by FY27, I’m assuming they’ll achieve at least 67% and hopefully will improve in the subsequent 2-3 years
- By then, the base would have increased even more and the NIMs would have stabilised
- They’ll also receive the insurance amount for a lot of MFI NPAs in FY27
- Their SA and FD rates would be much lower than now, and just be marginally better than other pvt. banks, therefore lower CoF
But these are all based on assumptions and hope. The major point I wanted to drive was that for now this stock doesn’t look much lucrative. Maybe in in those future years it might become.
Can you explain what u have said in little detail?