Capital First has released some data in its investor presentation today, showing 27% CAGR for assets under management and 40% CAGR in net profits over the past five years. Capital First's Gross NPAs stand at 1.59%, lower than the 5.6% average for NBFCs and 7.9% for banks (90 dpd NPA recognition). CAPF, which does loan sizes ranging from Rs. 15,000 to Rs. 2 crore, has seen its gross and net NPA have come down from 5.28% to 1.59% and the net NPA has come down from 3.78% to 0.97% over the past seven years.
The company's 9MFY18 net profits are close to net profits for the full year of FY18. The company's ROE, Capital First said, is at a record high when annualized, now standing at 14.08%.
The numbers are also good in light of the upcoming merger with IDFC Bank. CFL as an NBFC, has not had access to the low-cost liability franchise available to banks, which it will have access to post-merger. The combined entity, according to analysts, will be able to ramp up retail liabilities including CASA. Nirmal Bang and Motilal Oswal recently upgraded their targets for the stock. For the full presentation, click here.