It would be unfair to compare nims of idfc with other banks…idfc has a DSA agent fee component of 1.5% which kills the margins at Cost to income level. So NIM looks inflated, while if accounted with CI ratio, it would probably be lower than 4.5%.
I understand dsa fee is may be one time, but as per renewed guidance from VV since past 2 quarters, CI ratio is being targetted at 65% now , which will be achieved in 2 years from here.
There r two major overhangs here – CI ratio and equity dilution because ROE is not above teir 1 capital adequacy ratio.
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