In my view, the practice of declaring quarterly provisional numbers should have been continued by the bank. The logic given the bank that they are going to declare the quarterly numbers soon and hence have not disclosed provisional numbers is flawed in my view. Even during the last quarter, the bank declared Q2 nos on 22nd Oct but still provided provisional numbers to the market(I don’t believe there was any Covid related disruption even during Q2). Once an institution begins a practice of giving timely data to the investor community, it should not be stopped. In my view it is not the best of the corporate governance practices where publishing of information is stopped arbitarily just because the management/board feels the bank has attained ‘stability’ in growth.
Even large institutions like HDFC, HDFC Bank, Bajaj Finance have continued to provide provisional data despite them being much larger and stable.
With respect to the point that other large banks like ICICI, Axis and Kotak do not provide the data, it needs to be highlighted that these institutions never did so even in the past during COVID too and hence haven’t regressed backwards on their commitment to provide timely data to their investors.
Was the practice followed just to provide stability to the volatile stock price of the bank in the past?
I hope this ‘stability in operations’ as pointed to by the bank doesn’t lead to stoppage of concalls too.
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