IDFC First Bank Limited

Hi Everyone,

I listened to the Q4 FY23 concall. Great performance and quite optimistic commentary indeed. But I was disappointed a bit at not being able to find a few pertinent questions and management view on those:

1. The profit from retail segment has dropped Q-on-Q (595 Cr previous quarter vs 506 Cr in current quarter). This is a concern considering this is a retail focused bank.
2. No further news about reverse merger with IDFC !?
3. Does the bank need to dilute equity further for next leg of growth? At a relatively higher equity base of 6618 Cr, is it not already unlucrative from EPS standpoint?
4. What’s the bank’s strategy for opening branches? Does it still need to go aggressive? While there are a number of levers to reduce cost to income ratio, wouldn’t adding more branches nullify those, at least near term? And which geographies is the bank trying to penetrate with new branches?

Kindly share your views and insights on these questions.

Disclosure: Invested