In Q2FY24, IDFC First incurred operating expenses of ~2700 Cr. ICICI Bank has around 8-9x number branches and incurred opex of ~6000 Cr in Q2FY24. I suspect a large portion of IDFC First’s operating expenses pertain to very high commission paid to intermediaries to aggressively push for loan origination. There may not be high operating leverage benefit as these commissions are variable cost.
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