Provisioning is a standard practice by lenders to strengthen their balance sheets. Expecting lenders to announce provisioning before the result will be a bad practice as without full context and commentary it can have unjustified impact on stock prices. It’s like expecting a lender to announce their operating margin or PAT before the actual results.
Even Indusin or Kotak have high corporate governance but did you see them disclosing higher provisioning before the actual results? IDFC first bank, also disclosed higher provisioning in their results.
Most of the well run lenders disclose who they are lending to and a prudent investor should do their homework to identify the risks. That’s why investing in lending sector is inherently tricky.
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