Disc: Not invested

I suggest we read LN’s note below.

Like so many companies recently, the mgmt seems more interested in the easy profits available in the bull market.

It does not share information about itself and it’s plans. It’s annual report is threadbare of any information other than what is required of it from a regulation point of view.

I had hoped the transfer of ownership from one generation to the next would create more openness and bring a vibrancy to the company. Alas it has been for naught.

Budget announcement can be interpreted in a slightly different way as well:

1. Improved credit assessment model to be developed and used by bank: What UC has been already making/maturing and using since last 5yrs, PSUs are going to make now. It’s like asking PSU to make a data analytics driven consumer lending model similar to Bajaj finance. Possible but very challenging as vintage of such models plays a crucial role for accuracy.
   Solution could be PSUs are tying up with UC as a co-lending partner, which they are already doing and ramping up in a phased manner.
   Even if PSUs are able to make the assessment model, the market is enormous and under penetrated. Despite so many commercial banks, MFIs, NBFCs, SFBs, the credit penetration is so little in India. Market is huge and there is a level playing field for 20 more UCs and banks to come.

2. Co-lending is the new way of lending, regulated by RBI and supported by Gov. As per the report shared by UC, it will grow exponentially from here atleast by 30-40% in the years to come. Co-lending is a win win situation for banks and NBFS. NBFS get fee income and lend off-balance sheet and banks have better control on the asset quality. It may replace significantly bank direct lending to NBFCs.
   Only caveat is, if all of sudden RBI deprecate co-lending. Highly unlikely in my opinion as this was established to demotivate banks direct lending to small NBFCs, which sometimes get busted. At the same providing credit to deserving NBFCs.

3. Agree, these are the question, i also want management to answer in detail.

Disc: Invested

Hi just started tracking Aptus. Quick question to those who are invested. Is there a risk to capital raising especially from NHB refinancing. The management mentioned there is an audit that is done by the NHB team every year to determine how much capital can be provided to Aptus.

Also Westbridge capital (promoter) has been offloading its stake. Is that a concern?

Thanks much