Have they updated swap ratio post the QIP?
I donāt think there will be recalculation of swap ratio again. QIP was done by bank & it is nothing related to merger. As mentioned during merger time, IDFC Ltd was holding:264.64 crores which will be extinguished instead 248 crores will be freshly issued. QIP additional IDFC First shares are issued to different institutions & they are additional to just bank & not related to IDFC Ltd.
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Credit card data by RBI for Nov is out. IDFC cards seem to have done well. I feel that in a few months card business should be nearing break even point. It would be nice to hear from the knowledgeable on the subject.
In my opinion there are three imminent events in H1 CY 24, which will positively impact the market perception of the bank. And these will happen in next six months.
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Completion of merger.
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Reaching break even point in credit card business.
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Infra loan book dropping below 1% of total book.
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One more: Reducing Infra and long-term legacy bonds will help boost ROE.
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By the end of 2025 they will be paying most of the legacy borrowing, Credit card business was incurring losses of 75 cr per quarter in Q3FY2022 , which should turn profitable.
these two can help Bank generating ROE of 15% to 16% by end of FY2025.
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The attached news is very interesting. Seems like more buying to come in next few days.
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Holding could be going up due to the merger and not due to secondary buying.
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I checked the shareholding pattern of IDFC ICICI prudential was not a share holder there.
but it had 1.39% in IDFC first at the end of last quarterā¦
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Based on my limited understanding, ICICI entities acquiring paid-up capital, could be mix of direct buying and issuance of new shares to raise fresh capital. Sure it indicates confidence in the bankās future prospects, but what it means to existing shareholders may not be clear until more details come out.
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Is the aquisition of shares being made by ICICI Pru AMC/Insurance, or are the schemes investing? What will the AMC achieve by investing in a bank? Is ICICI Bank taking strategic stake via the AMC/Insurance co??
With the new guideline to maintain CD ratio below 75% how is it going to impact IDFC FIRST whose CD ratio is very high.
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As the letter itself says,
Mr. Suketu Kapadia who has
tendered his resignation as the Chief Internal Auditor (within the category of Senior Management) of the Bank, in order to head Internal Audit for one of Indiaās largest Banks.
This looks like a routine resignation to move to a better job opportunity.
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An educated guess would be that the bank moves some portion of the deposit money to their investment book.
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If the CD ratio requires adjustment due to 75% limit, then the best solution is an extra push for more deposits, to get back within the ratio. This will have the benefit of an automatic positive, the moment, the limit is rolled back to normal. The bank has already declared many times that deposits are no problem.
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IDFC First Bank doing a ton of redemption of bonds that are otherwise farther in future for redemption - They are keen on bring down their cost of funds by smartly utilising their CASA and/or replacing with low cost borrowings?
See Debt Private Placements on NSE India for IDFC First Bank:
https://www.nseindia.com/market-data/debt-private-placement/corporate-filings?company_name=IDFC%20First%20Bank%20Limited
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fd06520f-3613-41d5-a84d-69bf229eda37.pdf (708.2 KB)
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Result are early this timeā¦positiveā¦?
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Credit card business is a small part of the overall retail business of any bankā¦ so am not sure if it makes any material difference in either revenues or profits or losses of any bankā¦ on[bviously they need to be careful about the potential of bad debts ballooning in adverse time and adverse selectionā¦
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Why is it alarmingā¦ people resign all the timeā¦ he is going to be the chief internal auditor of one of the largest banksā¦ itās an amicable separation as they have also mentioned it in their letter to the exchange.
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