"We are carrying Rs 27,936 crore of fixed-rate liabilities at 8.66%, largely legacy, and you can imagine the upsides when these are replaced by low-cost deposits." ~ V. Vaidyanathan, IDFC First Bank FY21 AR.
"We advise our product teams to design products in such way that it is meant to be sold to our 'near and dear' ones. We make products with transparent pricing and fees."
"We don’t pressurize our employees to 'somehow' sell high-margin products to meet fee targets. The list of our 'Customer First' features is long."
"Reducing our savings account interest rates had another positive side benefit; we can now participate in prime Home loans profitably which has multiplied our market opportunities."
On Corporate & Infra loans:
"Barring our exposure to the telecom account, we feel most of the issues are behind us."
Vodafone Idea is the biggest risk. Consider it NPA.
"Barring our exposure to the telecom account, we feel most of the issues are behind us."
Vodafone Idea is the biggest risk. Consider it NPA.
"During COVID our retail NPA has increased, but we are confident of reverting to our pre-COVID GNPA and Net NPA around the end of FY 22, based on the strong pickup in collections post-COVID second wave."
How do they know the future?
How do they know the future?
"Going forward, We will be targeting a 2-1-2 formula, i.e. Gross NPA of 2%, Net NPA of 1%, and provisions of 2% on funded assets on a steady-state basis. "
"Our incremental borrowing cost is less than 5% and incremental lending in retail is over 14% at this point of time. So our incremental spreads on the retail are 9%+. Our incremental ROE in the retail lending business
is estimated at 18-20%."
~ 2% credit cost: need to track.
is estimated at 18-20%."
~ 2% credit cost: need to track.
The hidden numbers: will only be visible when the Credit costs go down. 
Guidance: Will take 3-4 years easily to get most of the things in order (to make it comparable to the other banks)
"The MSME, retail, and rural & agriculture markets are about Rs 65 lakh crore and growing.
We are merely Rs 75,000 crore in this market, which is barely above 1% of this market. For us to grow at 25% is not a big deal."
We are merely Rs 75,000 crore in this market, which is barely above 1% of this market. For us to grow at 25% is not a big deal."
The assurance about the Voda-Idea conundrum.
The Banker with a heart.
Mr. Vaidyanathan's salary went down 30% while an average employee's salary increased by 13%.
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