Nobody waits. Most investors are tingling to react at first sign of uncertainty. Most businesses do not go up in linear manner, and every business has its own nuances. There’s no sign of trouble here, but people have gone into so much over-analysing every single detail as if the world is falling down for this business.
The only thing that is standing out here is increase in provisions – to which the management clearly said multiple times that sometimes there is ageing of borrowers, past covid recoveries have tapered off, and finally such extreme low credit cost numbers (as were seen during covid years) do not feel sustainable to management and hence they feel more comfortable factoring in higher provisions just to be certain.
Some investors keep asking such pointy questions to which management has no option but to politely say “Get Lost”, and that, they answer diplomatically. Not only that, they even showcase humble behaviour by asking “What do you think? Is 20% growth acceptable?” 
– Joota giila kar k maarna koi inse siikhe!
While there may be more worms hidden underneath, but that’s purely an assumption for now. We do not have data as of now. So we just need to have patience.
Mohnish Pabrai often quotes Blaise Pascal All of humanity’s problems stem from man’s inability to sit quietly in a room alone and do nothing. As long term business partners, we really need to pay attention to this.
No disclosures or advise, please take it as you may. I may or may not be a current, past or future investor in IDFC First Bank / IDFC Limited.
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