IDFC First Bank Limited

Hi Asutosh, on a theoretical basis, i agree with your point. However continuing equity dilution is not value accretive from a shareholder point of view… The bank should create good amount of growth capital from internal accruals, once its Cost to Income ratio improves. The management (basically Vedi) has guided reduced branch openings in future; the existing bouquet of products has seasoned and will become profitable; the deposit collection machine will continue to deliver; the provisioning will stabilise-assuming there is no blunder in the making; 20%~ loan growth will continue. All these will have a positive impact on the numbers and then the stock price