Some details about CDB....

Leon · 1 Some details about CDB.... Wed Nov 21, 2012 10:54 pm

Leon

Assistant Vice President - Equity Analytics

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Join date : 2011-08-06

Dear Friends,

30.09.12 31.03.12
Deposits in Banks 1,333,822,013.00 - 490,589,920.00 172%
Loans & Advances 3,854,030,475.00 - 3,307,640,589.00 16%
Net Investment in Lease 8,538,928,436.00 - 7,095,726,690.00 20%
Net Interest Income 754,829,639.00 - 551,818,837.00 37%

30.09.12 30.09.11

Net Profit 245,518,760.00 241,476,737.00 2%
Finance Expenses 3,536,101.00 4,392,793.00 (19.50%)
Administration Expenses 206,344,059.00 164,646,159.00 25%
Provision for Loan Losses 52,567,264.00 13,035,330.00 303%
Income Tax Expenses 47,550,917.00 19,362,693.00 146%

NAVPS 45.67 44.15
EPS 4.62 4.54

Considering the above figures I feel CDB is doing quite well even under this stiff policy rates. Net interest income has grown considerably and net investment in lease (despite high vehicle tax) has grown by 20%. Due to the high rates for deposits CDB has increased its deposits by 172%.
For the last six months period CDB has reduced finance expenses by 19.5% while the administration expenses increased by 25%.Provision for loan losses is up by 303%.
I think even in difficult times CDB has done ok. Historically, CDB has performed well in third and forth quarters of the year. So, if the company record a flat growth we can expect at lest 9.24 of EPS (4.62x2)
Share Price: CDB has maintained its price between 31.00-47.50 during the above period and if we get good times ahead we can expect at least 80.00-90.00 (9.24x11)
Currently, I have some CDB and worth its price and hope to collect more. This is not a recommendation to buy. This is just to provoke forum members to have a brainstorming on CDB.
Thanks...

Jana1 · 2 Re: Some details about CDB.... Thu Nov 22, 2012 4:40 am

Jana1

Assistant Vice President - Equity Analytics

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I am also having considerable qty in CDB. But want to give one more view despite its well performance. I studied CDB carefully for a years time.

Lease business increased by 20% despite of tax must be wrong. From this quarter only we could see marginal dip in Motor sector IS. Because most f the company had permit vehicle and pre booked vehicle orders. So impact of tax wasn't quite affect the neither motor sector or fiance sector IS so far. But the period from present is vital. They have less orders (about 20%), most of the orders placed during low tax times were executed upto now so they managed to have good healthy profit. If you concern about CDB they will manage at least one more year with same profit as lease extends upto 4 years. You got to clearly think about this issue. If it starts to make lost, then that share price would fall down bit more with fuel of its bad reputation of parent company. Just my view, if you are confident or different view pls share with us...

Expert · 3 Re: Some details about CDB.... Mon Nov 26, 2012 2:21 pm

Expert

Manager - Equity Analytics

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Some experience with CDB:

Once I went to CDB to deposit some money in an FD. As usual with a Finance Company, they do not issue the FD Certificate on the same day; instead, they give a receipt for the money received by them. It was for a three months' FD. Later, you have to go and collect the Certificate when it is ready; either they will inform you when it is ready or you have to go there and query.

Interestingly, when I went to collect the Certificate, it was found that the date of the Certificate was six days later than the day I deposited the money!

Assume I deposited the money on 1st of January. The Certificate was for a period of three months from 6th January to 6th of April.

Fortunately, I checked the dates there itself and pointed out the mistake. After a lot of internal discussions, wasting at least an hour of my time, the person who handled the transaction came up saying that it is a mistake on their part and that the interest for the six days would be paid at the end of the period. When I refused to accept the certificate with the error, I was offered to be paid that amount by cash at that point out of that person's pocket; I just couldn't accept it that way! I refused it and took the Certificate and returned and the FD matured later on the said date and I never got that six days' lost interest.

Just a lesson to those who deposit with Finance Companies, in general, though I experienced this only with CDB. Next could be you!

Slstock · 4 Re: Some details about CDB.... Mon Nov 26, 2012 2:46 pm

Slstock

Director - Equity Analytics

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Join date : 2011-01-22

There is some irregularity here no doubt.

Though the money was accepted , was there a holiday period between the date deposited and date on certificate? If so this happens.

Secondly, you should have accepted the interest lost offered to you on that day ( right or wrong or out of someones pocket, if it is somes fault they should rectify.)

Else if you accepted date on the certificate, and received no official letter saying that interest for 6 days extra will be paid at the end, and if they did not pay , then legally there is no way to contest as you accepted the dates on certificate.

I am not saying this is ethical by CDB but we need to be careful also. I think you should have argued to get a offical letter or taken the money offered at that time ( you have a deposit receiopt to prove that you took money for the interest lost for 6 days)

Is it only Expert or are there any other who had the same exprience with CDB?

Expert wrote:Some experience with CDB:

Once I went to CDB to deposit some money in an FD. As usual with a Finance Company, they do not issue the FD Certificate on the same day; instead, they give a receipt for the money received by them. It was for a three months' FD. Later, you have to go and collect the Certificate when it is ready; either they will inform you when it is ready or you have to go there and query.

Interestingly, when I went to collect the Certificate, it was found that the date of the Certificate was six days later than the day I deposited the money!

Assume I deposited the money on 1st of January. The Certificate was for a period of three months from 6th January to 6th of April.

Fortunately, I checked the dates there itself and pointed out the mistake. After a lot of internal discussions, wasting at least an hour of my time, the person who handled the transaction came up saying that it is a mistake on their part and that the interest for the six days would be paid at the end of the period. When I refused to accept the certificate with the error, I was offered to be paid that amount by cash at that point out of that person's pocket; I just couldn't accept it that way! I refused it and took the Certificate and returned and the FD matured later on the said date and I never got that six days' lost interest.

Just a lesson to those who deposit with Finance Companies, in general though I experienced this only with CDB. Next could be you!