IDFC First Bank does unsecured lending (largely). Unsecured lending comes with higher risk weight requirement (they have to set aside more capital for that). The advantage of that is they can charge higher yields for these loans, hence you would see that NIMs for top banks is approx. 3-4.5% (except Kotak which is more of an Investment Bank than a traditional Bank) while IDFC first has 6.5% approx. Bottomline, everything comes down to RoA whether it comes through higher or lower NIMs.
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