IDFC first Bank

 Earnings Call Q4-FY 2021-22

• Retail fee income is 84% of the total fee income.
• More than 7 Lacs credit cards issued without any DFAs (mostly for existing customers i.e account holders)
• Current accounts are 18% (earlier 11%) of the CASA accounts and Mr. Vaidyanathan admitted that improvement needed in this segment.  
• Gross slippages = 1400 cr Net Slippages =700 cr
• Corporate A/c of 250 cr slipped this quarter (a legacy account i.e. loan given by pre merger IDFC bank )
• Only 500 cr is left from Vodafone (earlier it was 3500 cr)
• Mr. Vaidyanathan mentioned that no verticals of the total loan book would exceed 15% of it and it means they want to diversify their business.
• Fee income is 22% of the total income.
• Cash is consuming mainly in 3 segments i.e. credit card business,setting up branches and paying interest for legacy bonds of 20000 cr (having interest payout of 8.8%).
• (a) legacy high-cost liabilities, (b) retail branch/ ATM/ liabilites set up expenses, and (c) set up of credit cards, there is a net profit impact of ~ Rs. 500 crores/ quarter
• The bank is targeting upper middle class income group.
• Employee cost is supposed to go down though loan book is growing and that is because digitization.
• Added 42 new branches and total branches becomes 641 and 70% of the new branches are opened in rural and semi urban area.

Clearstream vs CDSL

 2021

Net Revenue = 835.4 Million Euros =6731 cr INR

Net Profit = 459.6 Million Euros = 3703 cr INR

But in Germany there is only one depository i.e. "Clearstream"

But in India there are 2 depositories i.e. NSDL and CDSL

clearstream operates worldwide

    

settlement and custody activities are reported under the Clearstream (post-trading) segment. In providing the post-trade infrastructure for Eurobonds and other markets, Clearstream is responsible for the issuance, settlement, management and custody of securities from 59 domestic markets worldwide, plus the international market. Net revenue in this segment is driven mainly by the volume and value of securities under custody, which determine the deposit fees. The settlement business depends primarily on the number of settlement transactions processed by Clearstream via stock exchanges as well as over the counter (OTC). This segment also contains net interest income from banking business. Clearstream’s contribution to ESG stems from proxy voting instruction and distribution services offered as part of investor services supporting customers to comply with regulatory, governance and market standard requirements as well as stakeholder expectations.

depository revenue = 1555 cr INR

Annual issuer charges =4812 cr INR

Lets say both NSDL and CDSL has 50% market share each

depository revenue = 750 cr INR and Annual Issuer revenue = 2400 cr INR for CDSL i.e total = 3150 cr INR

with 50% margin it becomes = 1575 cr INR

Total Equity Shares = 10,450,0000

EPS becomes = 1575 cr / 10,450,0000 = 150 INR

if you give 30 times PE multiple then the share price becomes = 150 x 30 = 4500 INR

But conditions are  

1. I don't know whether clearstream's revenue comes only from Germany or worldwide
2.