IDFC First Bank Limited

Thank you very much Ayshi and Sahil for so well capturing the conference call. Without hearing the call, it feels Ive heard the call.

I have been an investor in Capital First and have made multiples of my money. There was never a credit issue for 9 years and I remember those days CAPF was lending to lower income segment for purposes the banking system were not lending. I was always minutely tracking the credit loss and NPA, but credit costs was well managed. (I used to call it subprime, but he never used the term in AGMs even when asked on the same). Even at ICICI, all people I talked to swear by him. They say he practically built the entire retail banking and built it amazingly. Literally, I used to be amazed that people were falling all over him to meet him in AGMs and all that. If in that segment, the credit losses were only 2.5%, then in the current segment, it should be lower.

So credit quality is not the issue. the issue is that since the merger, there have been no profits, only losses and I was disappointed. Even now the profits are only ROE of 9%. frankly, so many banks post 12-13% ROE. I know the starting point at merger was weak with no ROA ROE and he has done a great job taking ROE to 1%, but he could have upfronted the losses in the first one or two quarters after merger, than bleeding the P and L for 6 quarters after merger. In his current approach by stretching the issue for 6 quarters, we were always on an edge. Lets see when the bank can post an ROE of 15%. Even 10-12% ROE will establish the proof of concept and we can believe the 15% after that. Lets wait and see.