IDFC Bank is a partner of Amazon for Amazon Pay Later, can we as a shareholder ask what is the NNPA, and GNPA figures for this specific partnership? if not exact numbers, maybe percentage data.
Or
Can I find this information somewhere, in the public domain?
Currently you are paying a fixed amount to cross a tollgate irrespective of whether you go 1 km after the tollgate or 50kms. Obviously the people paying to just 1km wonât be happy. The govt is trying to implement a way to charge people based on the distance. But the fast tags arenât going away. Hope it answers your question. Thanks
11 Likes
Thanks. That helps me to have more clarity on this
1 Like
Dominance in toll gate significant exposure to consumer durables ⌠Are they building like bajaj finance like portfolio atleast to some extentâŚ
3 Likes
IDFC Moves to top 10 Credit card issuers.Should be 9th post Axis and Citi merger.
18 Likes
To be in the list of top 10 creditcard player, that too without using traditional DSA route & within span of 2 years is a really commendable achievement in my view.
As Mr. Vaidya said in concall, creditcard devision will breakeven around 2 million mark ( from 75 Cr. loss per quater ). So it may well happen this year itself.
Flowers are ready to bloom :))
3 Likes
I noticed recently that the IDFC first credit card swipe on POS machines are showing an option to redeem reward points.
Reward points redemption attract INR 99+ GST fees.
Shop keepers simply press yes for anything that shows up in POS fearing payment failure.
This way I myself lost the 99+ gst twice for purchasing small amounts. I find this little trick dirty from a customer POV. Business will gain good revenues from it though.
Disc:
Invested, savings account and credit card holder.
8 Likes
They are now using DSAs⌠I get call everyday⌠Very annoying just like any other bank⌠
5 Likes
Comparison of Bank Performance since Feb 27, 2019 - Feb 27, 2023
Annual returns including dividend reinvested.
Bank Annual Return(19-23) Price Movement Dividend
ICICI Bank 24.87% 355->856.4 (8 Dividend)
HDFC Bank 11.3% 1062.7-> 1592.9 (64 Dividend)
Axis Bank 5.03% 703.7->854.35 (2 Dividend)
Kotak Bank. 8.62% 1240.95->1725.95 (2.8 Dividend)
SBI. 18.91%. 270.15->527.7 (11.1 Dividend)
IDFC Bank 4.33%. 45.9->54.4
IDFC 25.91% 37.4->74.45 (15.15 Dividend)
4 Likes
The bank seems to be on the right trajectory, but there are question marks on the pace of improvement. Vv is now saying RoE of 13-15 percent by FY25 i.e. two full years from now. This is in the up cycle when other banks are in the 15-17 range already. Costs wonât be coming down dramatically because branches are being opened for necessary deposit accrual.
I understand that they canât be compared and branches are long term investment, but it does beg the question what possible valuation this bank might get in the next 2-3 years.
7 Likes
My own sense is VV is conservative but will over deliver . Listen to the last 10 mins of Q3 concall where he has clarified he does not want to get ahead of time and raise capital every now and then ; instead wants to use cash accruals to fuel growth and hence moderating advances to only 8k -9k every quarter thereby managing capital as well as ROA / ROE appropriately and yet grow at 25 % This in my view is a very value accretive model for a very long term . I believe he will overdeliver on all parameters of his strategy except perhaps C/ I ratio where the cost exhaustion will taper down slowly owing to branch expansion .
15 Likes
11 Likes
IDFC Limited aims to complete the merger with IDFC First Bank in FY23, barring unforeseen circumstances.
IDFC Limited has completed all necessary stages of Corporate Simplifications.
Axis Capital Limited has been appointed for fairness opinion on the share exchange ratio.
2 Likes
This is just the start of the merger process, the entire process goes through NCLT and all and is likely to take more than 12 months from now. Thanks.
3 Likes
Amalgamation of IDFC with IDFCFB
There seem to be confusion on press release of IDFC. It is literally impossible to complete the precess before the end of Fin year 2022-23. The circular says Board meeting has approved Appointment of Value Assessors, Legal Due diligence teams. In my opinion, teams have to be appointed and they have to study, discuss and submit the report itself will take time. We are left with only eight working days . IDFC should come with clarification on their press release.
2 Likes
By FY23, I suppose they mean the finalisation of share conversion ratio. After the CAâs recommendation it will have to be approved by the respective boards, followed by general body of shareholders of both companies. And then approvals by institutions like RBI, SEBI, stock exchanges and finally by NCLT.
From the onset, the main decision point on the agenda was the share conversion ratio. It is obvious that the conversion ratio has now been arrived at, and informally agreed by managements of both the companies. That is why the press note could be issued.
Now the remaining job is to formalise that decision by clothing it in the formal procedure. I feel that by 31 March they would complete the CA recommendation on fair ratio and respective board approvals. Rest of the actions would be possible only in the next year.
5 Likes
37.75 crore allotted to IDFC Financial Holding Co. on a preferential basis at a price of Rs. 58.18 - getting their holding up to 39.99% from the current 36.38%. The allotment approximately amounts to Rs. 2,196.30 Crores.
Edit: IDFCâs announcement regarding the same:
1 Like
Great analysis buddy. It was right on point.
2 Likes