I have been an investor in IDFC first bank the past 4-5 years and still investing on SIP mode. We still haven’t seen the reflection of the bank’s efficient operations due to elevated costs primarily linked to branch expansion and new product launches. It is unfair to compare a bank which got its license less than a decade ago and started from scratch with a bank which started operations decades back. Like its pointed already, the management guided 5 years back and have delivered on all counts. And i see a similar conservative guidance for the next 5 years which will be easily beaten IMHO. Additionally there are lot of soft factors like customer experience and digital platforms which will play out over the next few years once customers warm up to the bank due to trust factor built with time.
I have never seen any other bank CEO talk fin-tech language anywhere else. And I see this reflecting in the bank’s tech stack and digital customer experience. I would say it is still early days for the bank and it will go through incremental profit metrics as well as valuation re-rating over the next 5 years.
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