Dear @rajguleria

I respect your views and I have taken down the post. I feel that in this “age of spin” it’s very hard to do sensemaking. Most of all I had no intent to stir a political debate in this forum…my apologies if i offended anyone. Lastly, it’s my hope that some incredibly smart policymakers are steering our country in the right direction, keeping the interests of the most vulnerable and under-represented at the top.

Best

Attended the concall…Some points noting

1. Out of 162 cr covid provision 75 cr is utilised for the retail chain loan (total exposure 510 cr, as of now it’s 0) becoming npa. it was part of the restructured book.
2. Nim compression qoq: Rate hike has not taken place. Rate hike will happen and benefit will be from q2. New loans are given at new rates. 37% of the book is external benchmark linked and rest fixed rate.
3. Low credit cost, so ROA ROE can reduce in coming quarters? Operating leverage kicking in, Treasury loss not happening again.

Gains first, risks second is the exact mistake that I am trying to point. I do not know whether the likes of Kotak Bank, Asian paints, Dmart etc can keep growing at 20%. But they have very good execution, solid competitive advantages, and management with high integrity. They only have valuation risk, which is why they will always find buyers even when the markets are falling. So the reason I have them in my portfolio isn’t because I am aiming at some x% gains, but because they minimize the risks I am exposed to. Think about risks first, and let the gains take care of itself.

Sure, but the diff is back then there was no certainty of internal accrual, couple of stressed accounts, covid, etc. Although I agree 25% growth rate would req capital raise soon but as VV mentioned not in fy 23.

Yes and you can confim but last two capital raises were done when Tier 1 ratio came down to 13.25-13.50%.