Let me try to address each of your criticisms:
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Where did I ever say, “He regretted the license”? Please read what I have written. He mentioned that an NBFC is more profitable than a bank in this particular conference call. I think we both agree to that.
Now, he has always said that his model with a banking license was better than as an NBFC. Not once did he ever say that NBFC margins cannot be maintained. He always praised the advantage of borrowing at lower rates as a bank and thus being more profitable. It has not turned out to be the case. His recent U-turn, claiming that an NBFC is more profitable, is the issue. -
When the merger was announced, the share price was 58. If I remember correctly, Capital First was around Rs 800 when the merger ratio was announced.
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I never mentioned that he does not have a good reputation. In fact, I went so far as to say that he is building a good bank for the customer. It is the investor who has been given a raw deal.
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The cost-to-income ratio in the past quarter was 70%. The guidance after 10 more quarters is 65%. After 10 more quarters, you will be at RBL’s cost-to-income ratio, which is a bank with many issues. This is definitely not a good operating metric. After 10 years of operations, you should compare with IndusInd or Bank of Maharashtra, not with RBL and Yes Bank.
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