IDFC First Bank Limited

VV says :

1. That he is aware of the cost to income ratio although it did not merit any concern as everything is going as per plan. To assuage the concern he says Growth in number of branches will be as per deposit requirement and branch target may be scaled down.

2. The next 5 year targets of liability and assets are conservative targets and easily achievable keeping past performance in mind. Some of these targets like asset quality, recoveries, GNPA etc are already achieved and bank has to only strive to improve further.

3. No worry on sustainability of High NIM of 6.3% as it is primarily due to business structure, and faithful implementation.

4. Completion of reverse merger, expected by June – July.

In my opinion, banking sector is a reflection of the state of economy and governance. As the economic performance is continuing to give positive surprises, good banks should perform well in the next five years. As usual, Private banks will perform better and out of these, smaller well run banks like IDFCF should do even better.

The monitoring by the regulator RBI is better than I have ever seen in last 30 years, which is a big comfort.