IDFC First Bank Limited

I think the whole discussion was fair. Shareholder getting a chance to voice his frustration to the main man and also getting a detailed response from him should be appreciated.

IDFCs earnings call was twice as long as IndusInd. The provisions were addressed head on in the media release as compared to IndusInd. I’m holding both so I know which management tried to be atleast more transparent and forthcoming.

People need to understand there is no point in comparing if stock price was 37 or 57. Mr market probably got excited and took the price higher on the news back in 2018. There will be investors that bought at 20 in Covid lows and sold at 100 as well. What is the point in comparing stock price selectively on 2 dates where the performance reflects exceptionally good or bad?

Focus should remain on whether fundamentally the bank is being built the right way.

The bank started from negative and took a while to reach 0 and then has now started the journey towards 10. This is different from starting from 0. Most operational parameters are trending in the right direction.

A lot of frustration on this forum and on twitter seems to stem from the fact that people expected an easy 3-4x from the stock in 5 years which hasn’t materialised. If only stock market was that simple

How am I looking at both IndusInd and IDFC –

• Valuation wise at this point both look like most negatives are priced in.
• Both have survived COVID. I think they will survive this MFI scare and get better.
• I have not seen any lay offs or signs of major stress in employees. Slightly reassuring.
• IDFC’s way of building the business looks more promising to me than IndusInd. Also their disclosures seem better. Key man risk remains higher at IDFC.
• I added one lot IndusInd on Friday and I will add one lot IDFC as well if it falls.
• With recent examples of other jailed bank heads, don’t think either management will indulge in fraud.
• Next quarter will be the decider as both managements have taken aggressive provisions and guided things will look better from here on.