Thread by @AnishA_Moonka

1/ This is a thread to understand why Uday Kotak is essentially one of the best bankers; India has ever seen.

The previous concalls of Kotak Mahindra Bank has been nothing short of a goldmine. This is Q3FY20.

- Inter-Sector risk underwriting
- Compass >> Speedometer.

2/ Elaborating on the previous tweet with respect to the Telecom sector's current state.

- Can result in a Big impact going forward.

3/ Understanding Business Dynamics:

- Lacking demand of Term Loans.
- Better Corporates migrating to commercial papers market + Bond Market.
- Underutilisation of Working Capital limits.

Even after all this, the opportunity is huge in acquiring new clients.

4/ On the retail portfolio:

“We are not obsessed with high margins, but we are certainly obsessed with risks for the returns we get.”

- Higher delinquencies.
- Huge risk in Microfinance.
- The real profits of an unsecured loan come in the last 2 & 3 instalments.

5/ 87% of liabilities from retail.

One thing people have to realise is that big institutions like this get pricing power over you and me once they have us in their pocket.

"Pure hard surgical driven strategy."

6/ This last 3 define why is it so tough to do banking business in a country like India.

Lack of transparency.

If you are not ruthless in doing the due diligence while giving out your money, you won't get it back.

A balance between margins, loan growth & Credit quality.