In Q1 concall, management has guided pressure easing in H2. During the conference call, management has guided 1.7 +0.4 +0.12 = 2.2% for the full year…the provisions for the H1 so far is lower than full year guidance …does that mean H2 would be worse.
Another thing, be it MFI or any other book, it is all part of banking business. Along with business cycle, some will do well and others may not. That is where management capability comes is in managing the risk- identifying early and taking course correction. HDFC has been able to do this pretty well that is it is HDFC. I see, IDFC has identified the risk and also started taking the right steps from Dec last year and lastly was upfront with investors. However, packing the MGI or toll as one time or business cycle issue is not appropriate wrt being transparent with investors (I know all management does this …but IDFC claims to be different)
Correct me if I am mistaken in my analysis.
Disc: Holding for past 6 years and planning to hold for long term.
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