In the cover page of the NCLT website the hearing was scheduled for 4th March but in the order copy of last hearing, the mentioned date is 15th March. So I am not sure whether the hearing happened or it is scheduled on 15th March. So we need to wait for update from company if they have got any approval letter if the hearing happened on 4th March. Case Status is still showing “Pending”.
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Merger related answer in video
https://m.youtube.com/watch?feature=shared&fbclid=IwAR0AHA6wxa_2PSZKaU8cjTx8FYR-uO9hkUxQiW4XquarmtlF_Ixns1hKvik&v=wzW4VKJU2uQ
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VV says :
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That he is aware of the cost to income ratio although it did not merit any concern as everything is going as per plan. To assuage the concern he says Growth in number of branches will be as per deposit requirement and branch target may be scaled down.
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The next 5 year targets of liability and assets are conservative targets and easily achievable keeping past performance in mind. Some of these targets like asset quality, recoveries, GNPA etc are already achieved and bank has to only strive to improve further.
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No worry on sustainability of High NIM of 6.3% as it is primarily due to business structure, and faithful implementation.
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Completion of reverse merger, expected by June - July.
In my opinion, banking sector is a reflection of the state of economy and governance. As the economic performance is continuing to give positive surprises, good banks should perform well in the next five years. As usual, Private banks will perform better and out of these, smaller well run banks like IDFCF should do even better.
The monitoring by the regulator RBI is better than I have ever seen in last 30 years, which is a big comfort.
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Well, IDFC will merge with IDFC first. So, IDFC First has already given their 5 year plan. Expect to grow 15-20% YOY.
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https://www.bseindia.com/stockinfo/AnnPdfOpen.aspx?Pname=25937e30-a4ee-439f-ac74-0dd3000d522a.pdf → you can find guidance in investor presentation of last quarter
here is the snap
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I Think it is 20-25% YOY
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Idfc First is responsible for 3.7 complaints per branch to the RBI ombudsman. Among the highest.
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VV gifts 7 lac shares.
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Checked with ir whi checked with cust service and reverted that the bank has some 15 million fastag and over 10m digital bnpl customers whose complaints are also added to total complaints and divided by number of branches for purpose of this calculations. Also compared to most othet banks whoae books are made of HL or autoloans, the bank has millions of consumer durable customers. Its for us all to agree or disagree, sharing what i picked.
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filename (4) (1).pdf (700.9 KB)
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NCLT order…
Shareholder’s and NCD holder’s meetings will take place on 17th of May …things take their own sweet time in India, but it is moving in right direction…
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Related exchange filings:
066fdda7-715b-4453-8334-6e341a0f5063.pdf (290.6 KB)
1132869f-bf98-4b51-b67c-4adf8f7a5125.pdf (242.1 KB)
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Don’t want to speculate but strange to see warburg pincus exiting when it seems next 3-4 years will be great for the bank, specially after staying invested for so long…
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Private Equity players have fixed timeline of 8-10 years for the entire funds and hence they would be selling irrespective of the fundamentals. Retail investors should understand working of market player like PE and use it to our advantage if we can.
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Thanks for this explanation,
But can those timelines be so strict that they push a PE player to sell at a worst possible time and price…UNLESS they know something which we don’t.
To clear your doubts . I will give an example of the same investor’s( Warburg Pincus ) investment in Laurus Labs . Warburg bought a 32 % stake in 2014 at a 1700 cr valuation. They sold some stake when Laurus went public in 2016 at 5000 cr valuation (Stock price of around 100 )They sold the remaining stake ( around 20%) in May and June of 2020 at 5000 cr valuation( Again stock price around 100) . By the end of September 2020 Laurus was trading at 250 per share. By July 2021 Laurus was trading at 650 per share . They made 3 times their money in 6 years , but missed 6.5 times rise in the next one year . Once their selling was done , there was no stopping the rise. Remember they were on the board of Laurus too.
Fun Fact : Warburg Pincus invested in QIP of Idfc first bank in May June of 2020 at around 20 Rs per share . We cannot say for certain , but some money from Laurus sale might have been used for Idfc first QIP. Even after waiting for 4 years , they could not get the 6.5 times return in Idfc first that Laurus got in next one year .
Conclusion:
- Even the biggest investor , with access to CEO and the board information can make horrible calls.
- If you are right in the fundamental analysis of the company , the exit of the biggies is often the best time to load up .
It’s not a recommendation to buy Idfc first , but according to me it is definitely a good time to look at it more closely .
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you are awesome…Do you follow such PE investors specifically and regularly? Do you have some resources to do it or this is just one-off?
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This observation on PE players is unfortunately a by-product of buying what I felt were fairly cheap companies and then to notice a big investor exiting . I had the same doubts. But this has happened a few times now that I feel confident in sticking to and continuously re-evaluating my original hypothesis. Sorry but there is no specific study on PE players.
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1 crore penalty for loan non compliance imposed by RBI.
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Not IDFC First Bank’s doing. See the dates.
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Did they give specific data? Because this sounds rather hand wavy to me. Most of these places like Croma have other bank personnel too, not just IDFC First. So they should have as many complaints too right?
IDFC First Bank board (LED Board) at its South Bopal, Ahmedabad branch Watch unnamed | Streamable
I haven’t seen such branch / shop board outside any retailer let alone a bank. Most I have seen are designer lights, not a fully functional LED screen where you can advertise actual products.
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