Very interesting presentation.
I feel like some problem is there in the way IDFC first bank is perceived. People think that their retail loan book is very risky. But IMO the transformation has been probably ignored by large parts of investor community:
look at how the ratio has changed from MSME+MFI (risky retail loans) being 62% of book in Mar-18 to being 28% now. Complete transformation of the risk profile. At same time yields have not really moved down a lot, definitely something worth investigating.
This presentation is a treasure trove of information.
This picture gives us a portal into what NIMs can look like in future. With latest cut in CASA rates, cost of borrowing can go down 1% with gross yield expanding 2% to 15% (when retail is 90% of the loan book after 3-4 years). That is how we would end up with a bank with 7-8% NIMs.
disc: invested, largest position, positively biased, this is not investment advice