IDFC thinks big but the shareholders think small as its bad debts and restructured assets put togother work out to 15% which is significantly very high at the start and with the high trend of ever increasing bad debts and the tendency of borrowers not to repay the debts under some pretext or other in the entire banking system, the IDFC bank will have a tough time to contain bad debts formation and reccovery of accummulated debts. However, the IDFC has scope but cannot hope too high as the environment to work as a bank is not that conducive going by the experience of many a banks in the system. Besides, the competition let loose with the opening up of banks for payment and settlements and small banks, the challenges are really very high and is definitely not going to be cake walk for IDFC. It has to have an entirely different business model with high technolgy combined with highly skilled human resources who can handle and bring in excellent Customer service in all areas of banking with involvement, commitment, expertise and knowledge of what they do .
Dr T V Gopalakrishnan
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