Thread by @datta_arvind

My thoughts on IDFC First Bank.
Below is the snapshot from Q2FY20 investor presentation.
1. Loan book is 107K crores, this is growing....good sign.
2. 45% of the loans are retail loans, again a very good sign. For comparison HDFC Bank has 55% of retail loans.....1/n

3. CASA ratio is 18.7% & growing. It has grown 10% in last 9 months. Which is very good. Anything over 30% is considered a decent CASA ratio. HDFC Bank CASA ratio is 39.5% & Kotak is 52%. IDFC First has a long way ahead to reach 30%+ ratio.
4. Gross & Net NPA are 2.6% & 1.2%..2/n

....gross & net NPAs are coming down which is healthy. It needs to further come down to 1.5% & 1%. HDFC Bank has gross & net NPAs of 1.3% & 0.3%.
5. Net Interest Margins were 3.4% & going up. It's a very healthy sign that profitability is increasing. For comparison.....3/n

.... HDFC Bank has a NIM of 4.4% & Kotak NIMs are 4.5%.
6. Price to Book is 1X. Again shows bank is available cheap as compared to peers. HDFC Bank PB is 4X
7. It has 351 branches which is less as compared to HDFC and Axis. HDFC has 5000+ & Axis has 4000+, ICICI has 5000+....4/n

8. Capital Adequacy Ratio is 14%+ which is healthy. The bank will not require incremental capital for next 2 to 3 years.

IDFC First is a good turnaround story with limited downside risk.
If one has patience of 2 to 4 years it can give you good returns. The stock.....5/n

.....can double from here in 2 years, that my personal view.

Downside risk is very limited.

Disclosure : i am invested in the stock since 2016.......n/n