Yup, I got email from zerodha about the amalgamation and fb shares will credited on or before 31st october
IDFC doesnāt have a core bussiness, but it hold shares in IDFC First Bank and some cash and cash equivalents. Now after the merger IDFC First Bank shareholders will see 5% jump as lesser no of shares are been given to IDFC shareholders as the no of shares held by IDFC is higher than the no of shares after the convertion is given to IDFC shareholders and they also get cash and cash equivalent of about 500cr as free which gets transferred to IDFC Bank which will also improve its CRAR further.
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Yes thanks, I am aware of that.
Much needed increase in Tier 1 capital.
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I got the email regarding the transfer but not showing in Zerodha.
Probably will be visible on 28th
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Frankly, my bet too is on Vaidya only. Because we made big money betting on him last time, me and many of my friends are holding on in hope for ever.
But the issue is this. This is an early stage bank. It does not matter how capable the driver is, if the vehicle is fundamentally broken then it takes time to fix it. in the meanwhile we can scream and scream at him as much as we can but he can only do that much. I feel in this context we should be watchful. To run a bank thats already making ROA of 2 and roe of 16 is probably betterā¦
for example I truly believe that he has done a super wonderful job in what was essentially a broken piece. He has set high expectations by growing deposits at 30% plus for 5 years can he sustain this growth for another 5 years?
He has already called out the MFI business like the whole industry has. But we should check out SMA 1 and SMA 2 is that trend stable? They gave out the numbers last quarter results, will they continue with that disclosure this time, considering the numbers are likely to be much worse?
After last quarter q1 25, he gave some pretty bad guidance for credit cost of Q2 25. The number of times he emphasised that there is going to be higher provisions in q2 25, it could not be missed. He said that in the AGM speech at least 5 times he called the same out to television channels ( see cnbc tv18 interview and agm speech its on yt) and in the conference call probably it is really bad
I thought stick would come down immediately was waiting for this to come down all quarter based on those commentary but it never did meaningfully.
now it has suddenly come down to 65, but I am not having the courage to buy it because all mid cap banks are down simultaneously, the reduction is not specific to this bank.
This ia the funny thing when it is high we wait for it to come down, when it does we dont have the courage to buy
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Eventually AAA Ratings has come across to IDFC Bank
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Very poor results by IDFCFIRST. I think it will behave like Indus Ind Bank next week
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The results are not that bad. Toll provision is exceptional one time item. And there are chances it would get recovered. MFI stress is already a known factor and not a shock/surprise.
Letās see how Mr. Market responds
Disc.: invested
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you are very rightā¦But people who donāt know idfc first in and out will compare profitability and provisions with Indus Ind then it will get hammered. On lighter note as usual Vaidyanathan sir will solace people in concall and media interviews so impact can be less. 
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Currently on the call. Its disappointing to observe that people tend to misbehave and overtalk when results are below expectations. We forget humanness in the eyes of monetary/expectation issues.
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I respectfully disagree with this. I feel the management is misleading investors. When the speaker mentioned that he is calculating the share price from the time the merger was announced, not from the date of the merger, Mr Vaidyanathan conveniently ignored this and repeated the share price from the merger date.
Isnāt it the managementās responsibility to review the bankās books before the merger? How can he wash his hands of it now? This is very irresponsible of him. While the bank may do well in the future, his refusal to accept his mistakes is very bad.
I believe it is the responsibility of investors to keep the management in check. In fact, Iām glad the gentleman advocated for the average investorās perspective so strongly. After all it is his money, and lack of return over 6 years is just unacceptable.
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The management deserves every bit of it and moreā¦the gentleman was kind and well behaved imo,
Management gave zero indication of what is coming in MFI during Q1 concall and subsequent media interactionā¦in fact vaidyanathan tried to give an impression that provisions will be slightly less in Q2 at that timeā¦
.
until now management used to conveniently blame everything on legacy issues and āstart-up bankā.
this time underwriting is their ownā¦so āpristine qualityā of their loan book got exposed.
.
also someone should advice them to stop printing that history of capital first and merger story BS in investor presentations and Annual Reportsā¦its been 6 long yearsā¦
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Sorry missed all exchanges here as I was traveling.
The speaker was polite and made no mistake. But I agree with VV on this point. Till the date he took over, the prior management was in charge. Whatever they spoke or did at idfc bank was their own doing, obviously they were in control of the bank. My sense is that ilfs dewan etc news flow happened and so idfc bank was down.
So when the shareholder said he was holding idfc bank shares since years, the banchmark was idfc bank shares at merger. The stock price was 37.6 on December 11 when the merger approval was announced to the exchange. So that benchmark was absolutely fine I feel.
On provisions he did mention that the upcoming quarter was worse and he did call out MFI on multiple channels including cnbc I remember and in the agm. This was my gripe in earlier postsā¦ on why they called it out so much.
But he gave no hint of upcoming provisions for MEP in q2 24, I agree. And looks like they said there are no more of these kind of accounts.
Maybe they wanted to take it all now so that next quarter onwards rhey can start the uptrend of pat. (hopeful) This was my take.
But i liked the loan growth, deposit growth, ppop growth.
Lets hope for a better fy 26.
On a separate note 75% at 90 dpd and 100 pc at 120 dpd, and now taking mfi provisions for sma 1 and 2 upto 99 pc is extreme conservatism. I can sleep in peace that they wont do wrong things. But is this much conservatism in accounting required at all?
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Sorry raghu, from the date of announcement to date of merger, the prior management was in charge. I feel he is right on this.
I am more hopeful now than before, atlease they have provided properly for mfi. Can anyone compare other mfis and share if mfi credit costs for other players is 6.6% for h1? Sonthat we can compare?
Also can we compare the other players provisioning policy?
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Looks like they have introduced a new information SMA 1 and SMA 2, product wise.
If someone can paste it here, that would be great. Also can someone help explan what this means
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SMA1 is special mention account 1. Accounts that are 30 days past due
SMA2 are accounts that are 60 days past due
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With these surprises in write offs, Market may not give P/B more than 1to stock. Stock may settle in 50 -55 range eventually, my opinion.
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they are conveniently misleading investors community by saying 75% of micro finance loans are covered under CGFMU now. but the truth is CGFMU provides coverage for loan amount above 10 lakhs. it means if a group having 15 lakhs out standing defaults cgfmu provides only 5 lakhs and remaining 10 lakhs should be provisioned by bank.
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