This is where TSI management see where they are going from the June corporate update:
"TSI India management is taking these steps to strengthen their position as Banking Infrastructure and Transaction Processing provider and predict the future for TSI India is to move towards becoming a payment bank over the next five (5) to seven (7) years."
The question is how they get there and how far VOR management want to invest in the story. Taking 90% seems they have bought in, at least part way.
14,000 essentailly brown label ATM's, I see as there to pay the bills (especially since the intercharge increased) to fund the required infrastructure and transformation to the end goal. I-Pay, e-surveilliance, power management, kiosk operation are all in place, but will need additional touch points to have scale. They will need additional controlled distribution channels (e.g. WLA service), more micro ATM points etc, digitalisation expansion, to be able to provide a scale banking service.
TSI survived demonitisation without extra capital and has returned to profitability. How we go about getting to TSI management's vision (if that is our goal) will be an interesting study in deployed infrastructure, technology adoption, asset utiisation and overall strategy. Maybe it works, maybe it doesn't, but it looks like a plan.
Cheers
VOR Price at posting:
3.7¢ Sentiment: None Disclosure: Held
