BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
IDFC First Bank Ltd.’s evolution is unique in a sense- on getting license, it was created out of demerger of infrastructure financing business followed by merger of erstwhile Capital First Ltd.
Stress build-up and franchise investment resulted in a weak return profile (net worth erosion) during the transition phase.
However, the new bank, with a new board, new management and renewed focus, has made significant strides in retailisation and granularisation of its business.
Current return profile is dragged by high-cost structure, low fee income and elevated credit cost.
Nonetheless, its marginal unit economics is superior and incremental retail disbursements have potential return on equity of more than 20%.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR