Which private Bank will foreigners buy?
Printed From: The Equity Desk
Category: Market Strategies
Forum Name: Comparing Stocks within the same sector
Forum Discription: Here we would discuss the various stocks that are available within the sector and provide insights on the better option.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=247
Printed Date: 27/Apr/2024 at 2:42am
Topic: Which private Bank will foreigners buy?
Posted By: basant
Subject: Which private Bank will foreigners buy?
Date Posted: 31/Aug/2006 at 12:16pm
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Which private Bank will the foreigners buy? The Indian private banking space will see a spate of mergers, acquisitions, and open offers in 2009. The second phase of the Banking reforms would enable significant de-bottlenecking and a number of regulatory relaxations would assist foreign Banks to establish themselves in In 2009 wholly-owned subsidiaries of foreign banks will be allowed to list in the Indian market and dilute their stake so that at least 26 per cent of the paid-up capital of the subsidiary is held by resident Indians. In this period, foreign banks will be permitted to merge with and acquire any private sector bank and would be treated on par with Indian banks. Currently foreign banks face the following restrictions 1) Collectively these banks cannot open more then 20 branches each year. These approvals are accorded on a case by case basis. Recently Citibank got approval to open up a branch in Kolkata but they changed the location to 2) The voting rights of foreign banks in the local private banks are presently capped at 10%. This ceiling will be lifted. I have never been an advocate of holding a stock and waiting indefinitely for an open offer. Sometimes companies never get sold. Two such stocks that come to mind are South Indian bank and Federal bank. Investors have been recommending these Banks for over 10 years yet nothing has happened. On the other hand Karur Vyasa Bank has gone up multifold without an open offer. When foreign Banks are given freedom to operate in 2009 they could do two things: 1) Expand rapidly into newer areas without having to swap permissions (Citibank example indicated above) 2) Buy out any private/local/ regional bank and get a head start without wasting any time I would assume that the foreign banks would opt for option (2) above rather then waste time in expanding independently. Looking at the Indian private banking space the following events need to be revisited in order to forecast what could happen in 2009. 1) HSBC holds 4.99% stake in UTI Bank. This is after the R.B.I. guideline compelled it to offload 7.19% of its stake into the open market. So we can know with reasonable degree of accuracy about the prospective bidder for UTI Bank. 2) Rana Talwar of Centurion Bank knows that a foreign partner would bring in technology; processes and systems. Earlier this year Centurion Bank merged itself with Bank of Punjab and thereafter took over Lord Krishna Bank. Interestingly First India Capital a wholly owed subsidiary of Temasek the Financial arm of the Govt of Singapore is in exclusive association with Centurion bank for loan disbursements to the SME(Small and medium enterprise) customers. 3) JP Morgan Chase directly holds 19.27% in HDFC Bank. In addition to this it further holds 1.29% through its Asset management company. So if HDFC Bank is sold out we would know who has a head start. 4) Bajaj Auto holds 4.14% in ICICI Bank. Incidentally Bajaj is the 2nd largest single shareholder in the Bank after the LIC and is not eager to sell his stake. However market men have it that Anil Ambani would also be interested in the Bank as the acquisition would suit Reliance Capital’s financial forays. The junior Ambani is known for his take over bids and his proximity to the present management could help. 5) Rana Kapoor and Ashish Kapoor have built Rabobank International Holding from scratch. The two Kapoors have been shown as promoters of YES Bank and they would like to increase the stake through Rabobank (of The following is the market cap of the Foreign Banks and the five Indian private Banks
A quick look at the market cap table suggests that foreigners are Gulliver’s compared to the local Davids so getting into business would not be tough for them.
Financials of these 5 Banks
Conclusion: Investors should hold shares of those domestic banks that are more retail oriented and have strong fundamentals. All the 5 banks recommended above fall into that category plus they could be takeover targets. I would suggest investors to take a pick from these companies or else make a quasi Private banking takeover Index and hold all the five stocks. Source: Media reports and Bse website ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
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Replies:
Posted By: Ajith
Date Posted: 01/Sep/2006 at 2:36pm
| Karur Vysya went up on pure fundamentals having a a very low equity base in the late 19eightees and would be a good acquisition target but I do not think the promoters would sell their stake easily.Federal Bank is nobodys bank and the NRI base makes it attractive. Overstaffed Branchers with agressive unionized employees may not be attractive and the Yesbanlk and Kotak type initiatives may be preferred by most foreign banks. |
Posted By: bub100
Date Posted: 08/Oct/2006 at 2:27am
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Hi Basant Ji are you also tracking ING Vyasa? As per the last new are going for more stake in the next 2 year. ------------- gs |
Posted By: basant
Date Posted: 08/Oct/2006 at 9:16am
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Grat stock. ING Alsoa mix of Insurance, AMC etc. I was not sure why they diluted their interest in the Insurance business to Exide some time back. But ING should be a big beneficiary post 2009. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: psimajin
Date Posted: 07/Nov/2006 at 3:30pm
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Can we play Insurance through Exide ? Someone was recomending me Exide, It can be a multi mutlibagger.
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Posted By: basant
Date Posted: 07/Nov/2006 at 3:43pm
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No. Exide holds only 49% I suppose play batteries through Exide and insurance through the leader always. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: omshivaya
Date Posted: 07/Nov/2006 at 4:37pm
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After the takeover Basant ji, is there any possibility that a bank like "Yes Bank" will still stay listed? If not, then is this a good bet for a 10 year play or just 4-5 years or until 2009(supposing there is a 100% chance of a takeover of Yes Bank)?
------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: basant
Date Posted: 07/Nov/2006 at 6:32pm
Hey, that would need a Tarrot card reader ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: omshivaya
Date Posted: 07/Nov/2006 at 7:32pm
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Okay. Thank you. Aprreciate it. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: reetesh
Date Posted: 07/Nov/2006 at 9:24pm
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I think those who are looking at YES bank for 10 years, In my mind they will do well if they look at ING Vysya bank for next 4 to 5 years. ING is trading at 1.4 book where as YES or Centurion etc are trading any where between 4 to 6 times, ING`s previous performance is not that great but things are changing and ING is seriously looking at Indian Operation and if you guys are so bullish on YES, I hope ING pick up this bank post 2009. ------------- When going gets tough, that’s when tough (people) gets going. |
Posted By: omshivaya
Date Posted: 07/Nov/2006 at 11:39pm
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Ya, let's hope so. But at 10 times the current price hopefully ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: tigershark
Date Posted: 07/Nov/2006 at 4:10am
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kvb looks good on fundas and as a take over tgt post2009 look at the
sept results great.nii has expanded, eps growth on increased equity and
non promotor holding is 90% it appears that fii have already bought
apart of these banks and kept for somebody.yes bank also seems to go
the same way maybe rabo bank india 2010
------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: omshivaya
Date Posted: 07/Nov/2006 at 10:12am
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Ya, incidentally Rana K of Yes Bank also was head of Rabo Bank India before he opened up Yes Bank. Also Rabo Bank holds more than 15% currently in Yes Bank. Let's see if Rana K can keep the corp. governance and investor confidence par excellence as he says now. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: kulman
Date Posted: 09/Nov/2006 at 9:21pm
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Basantjee
I have 3 separate queries for this sector (Banking & FIs):
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 09/Nov/2006 at 9:28pm
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What does it mean by 'adjusted' Book Value? - Book Value - Non Performing assets per share. How would you compare or rather rate, amongst pvt banks: UTI Bank v/s Yes Bank v/s KVB v/s ING Vyasa - Management (historic and subjective )Price to adjusted Book Value, RoE finally PE. As on today UTI KVB are more stable YES most promising ING cheapest. In FI space, how much multiple (to BV) is justified for IDFC?
New Bank growing fast so maybe 2 times or so at most. Basically we need to see HDFC Bank is growing at 30% and trades at Price to adj Book of 4-5 times SBI at 1.5 times since growth is slower so it is subjective you see. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: patnitin
Date Posted: 28/Dec/2006 at 2:43pm
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Hello Basantjee, I intend to exit UTI Bank(Acq.Price 43) and Karnataka Bank(Acq.Price 85) and enter Yes Bank.
Would you advise the same.
I also hold other banks such as HDFC Bank,SBI,ICICI but am of the view that those stocks I would probably pass on to my daughter like my father's doing.Your comments please.
Regards,
Nitin
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Posted By: basant
Date Posted: 28/Dec/2006 at 2:52pm
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In case you want to hold two stocks then Yes bank and UTI Bank or I would suggest that since Yes Bank is also in the emerging space why not HDFC Bank (Big Bank ) with Yes Bank (emerging Bank). Karnataka Bank is going up because there is no clearly defined promoter and people think that there could be an open offer but I have seen stocks linger for 10 years on that anticipation (Federal Bank and South Indian Bank). SO in case the fundamentals are good the stock price would go up irrespective of takeover or not. Our objective is to make money whether it happens through tendering of shares in an open offer or otherwise should not matter really. Another stock that creates ripples on the takeover buzz is LML!!!
I have no indepth research on Karnataka Bank but this seems to be news based to me. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: PrashantS
Date Posted: 28/Dec/2006 at 3:40pm
| What about DCB ..with Naseer Munji who was part of HDFC ...if i am not wrong....with an increase in FII limit...???? |
Posted By: basant
Date Posted: 28/Dec/2006 at 4:06pm
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Good Bank but seems priced in to me. I am more comfortable with such institutions that have a tendency for retail credit. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: patnitin
Date Posted: 28/Dec/2006 at 5:20pm
| Thanks Basant jee. |
Posted By: deveshkayal
Date Posted: 16/Jan/2007 at 7:58pm
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Basantji,how is Centurion Bank of Punjab vis a vis Yes Bank.I read one analyst saying that CBoP wants to be in the league of HDFC,ICICI so it is getting agressive in takeover. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: basant
Date Posted: 16/Jan/2007 at 9:13pm
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I was thinking along the same lines today!Does seem very attractive on the longer term basis. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: prosperity
Date Posted: 16/Jan/2007 at 11:30pm
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Kotak Mahindra Bank and BoB are also agressive ...
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Posted By: bullzi
Date Posted: 28/Jan/2007 at 7:46pm
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I have a question for all the TEDdies: If you were to accumulate one of the private sector banks at current market prices which among the following would it be? Banks and CMPs - Centurion Bank of Punjab: 37 - Yes Bank: 156 - Kotak Mahindra Bank: 476 I already hold HDFC bank and ICICI bank and would like to add one of the above 3. TIA ------------- It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong - George Soros |
Posted By: xbox
Date Posted: 28/Jan/2007 at 4:30am
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If you were to accumulate one of the private sector banks at current market prices which among the following would it be?
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First of all, I will advise all TED members to take extra caution in financial/banking sector for fresh exposures. Interest rates are on upward journey and bottom-lines are under-pressures.
 Bank executives/CEO will try to show scenic picture till fall. Be aware of them. It did not remain soft play any more, Ppl with minimum 5 year perspective should jump-in here (if decided).These upward interest rates are sowing seeds of market crash in 10-12 months. Signs are not positive. FIIs are turned into bare spectators. Valuations are against price. Liquidity flow is uncertain.
 As far as opinion on different banks are concern here is my take...
1. CBoP - Must buy/Hold. It will pick some more weak bank. Now all promoters of weak banks have learned one lessen - sell it to strong bank before RBI axe. This thinking is/will working well for CBoP. It is the Bank in making. (+ mcap, promoter, restructuring: - interest rate, interest rate).
2. YES Bank - Must Hold. Fresh buy is not advised. With interest rate being up-words, strengths if SME will weaken and so bottom-line of YES Bank. (+ top-line, differentiation from commodity like banking: - interest rate, mcap).
3. KMB - Must hold till demerger. Fresh buy is strongly denied. KMB is one man show. (+ restrcuring/demerger : - too many).
Given liquidity, I would pick CBoP on dips. ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: xbox
Date Posted: 05/Feb/2007 at 11:50am
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Basant jee,
Post 2009, will it make sense to be with shikari or shikar ?
Deals will not be done on fundamantals. Valuations will reach roof-tops. What is your take ? ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: basant
Date Posted: 06/Feb/2007 at 12:01pm
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Great point. The shikar makes more money in deals like these - always. LIke see the Tata-COrus deal to start with. Tata buys a company at 12 times whereas its own multiple is 6 times so obviously that excess baggage would hurt but if you are a shareholder in the shikaar it would be great.
What do you think would be the take over Banks in 2009? ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: xbox
Date Posted: 06/Feb/2007 at 12:21pm
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I have similar views. A strong bank could become shikar (like Corus) and vice-versa. This takeover matrix looks very complex. A weak bank if not taken-over by somebody will sink shareholder value whereas takeover for a strong bank may not necessarily enhance shareholder value. It is There will be more misses than kisses. I have shikari (ibulls), shikar (yes bank) and traveler (KMB). I think all banking stock will not make money from here. Sometime back I made point for NBFCs. I think these NBFCs (rel cap, fortis, ibulls etc.) will make good moves.
One thing is quite sure ..takeovers will happen at stretched levels. It represents opportunities as well as confusion. A single pick can make fortune and within 3 years. and vice-versa. So Basant jee, I guess basket approach is best one. Go on shopping and buy some appealing candidates and some ugly candidates. Buy second one first. ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: tigershark
Date Posted: 06/Feb/2007 at 1:41pm
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the two southern banks kvb and sib could also bcom shikars infact fii already own considerable % in these banks though one needs to be patient in this matter as even after 09 it will take some time till it finally happens has anyone looked at the shareholding pattern of hdfc bank can it also be taken over ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: omshivaya
Date Posted: 06/Feb/2007 at 3:06pm
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I 2nd that view Vipul jee. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: tigershark
Date Posted: 06/Feb/2007 at 3:21pm
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the share holding patern of hdfc bank is as follows 21% with hdfc 32.74 with fii 11.6 with public and 8.75 with bodies corporate another 20 with custodian against global depo. so it does seem possible that a large mnc bank can buy a sizable stake in hdfc bank also maybe 30-40%.only the time will tell ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: basant
Date Posted: 06/Feb/2007 at 3:33pm
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I had highlighted my views on the first page of this topic.
http://www.theequitydesk.com/forum/forum_posts.asp?TID=247&PN=1 - http://www.theequitydesk.com/forum/forum_posts.asp?TID=247&PN=1
I think HDFC will reverse merge with HDFC Bank so as to thrawt that takeover bid.Whatever be it I feel that buying and holding shares only on the bais of takeover becomes a mistimed move quite often. If the company is doing well it opens up endless opportunities. For example RD has been recommending SIB for the last 10 years but nothing has happened whereas if anyone would have bought the stronger Banks then he would have made money takeover or no takeover. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: nikhil090
Date Posted: 06/Feb/2007 at 3:51pm
| While i agree with Basant's view, a merger of HDFC and HDFC bank will make 100% sense. The managment has planned it very well. I dont see any area in which both of them are competing. HDFC is into insurance, homeloan etc, and HDFC Bank is into other fields. Together they both cover the spectrum as ICICI covers..The merger, if it happens at all, will have no conflicts, only synergies. |
Posted By: tigershark
Date Posted: 07/Feb/2007 at 2:14pm
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although adity puri denies any such proposal in his last interviw maybe he his just playing safe. ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: xbox
Date Posted: 11/Feb/2007 at 4:52am
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Here is the most compelling 2009 story ...CBoP.
It will be the most preferred buy-out candidate post 2009 because it has pan India presence, huge network (400+ branches), no known promoter, reasonable mcap (5K+) Cr and willingness to exit (from existing management). But story is not this. Story is what CBoP can become by 2009. CBoP is unique story in making. It has dark past, struggling present (NPA) but bright future. Uniqueness of CBoP lies in takeover/amalgamation of smaller banks. It has sallowed BoP, LKB etc. etc. I think management is preparing itself to become big so that it can get bigger and bigger takeover cheque. Remember Takeovers are not done on fundamentals but done of assets and future promise. Recall vodafone buyout, Corus buyout and that Hindalco's buyout.
A bank with 400+ branches can easily be sold at 5-7 BUSD. It is conservative figure. CBoP is going vary cheap. YES Bank with 30 branches fetches 4K+ mcap whereas CBoP is is just 5K+ for 400 branches.
Now take non-believer stand. Will ICICI bank be sold, no. Will HDFC Bank, no (for next 5-7 years), KMB, no for sure. No buyout will tarket PSU Banks (not allowed). Then what is next most probable candidate ? it is CBoP. In case it improves on NPA front or makes few more acquisitions, it will benefit shareholders.
CBoP has one zing thing. Which I like in IFCI as well. It is willingness to sell from existing management/promoter.
In IFCI, I don't have margin of safety (as I looked very late) but CBoP looks good on margin as well.
Only short-term issue could be interest rate related fluctuations but one willing to store till 2009, one should take position now or at decline. Mugerilals pls help with support levels....
 . It is multi-bagger in making. Right sector. Right signals. Right horse. It is 101% takeover target.------------- Don't bet on pig after all bull & bear in circle. |
Posted By: Mohan
Date Posted: 15/Feb/2007 at 10:43am
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I believe Rana Talwar of Sabre Capital fame is running the show at CBOP. He's a very competent takeover specialist.
CBOP will be at least a Rs 20,000 crore market cap bank by 2009. ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: PrashantS
Date Posted: 16/Feb/2007 at 12:53pm
| Does anyone know about take overs ..in 2009 ? which bank could be a favourite and why? A banker could help us out |
Posted By: munaf
Date Posted: 10/Jun/2007 at 3:16pm
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hi,
I feel there is a lot of scope in stocks of private banks as the sector goes into consolidation and big pvt banks acquiring stakes in smaller pvt banks in order to survive the competition from large public/foriegn banks.Maybe some of them would get lost in the process , but those having good network of branches , businesses etc are sure to survive in the long run. We have some examples like Yes Bank , DCB etc.
Please let me have a feedback on my views.
Thks,
Munaf
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Posted By: equitymaster
Date Posted: 11/Jun/2007 at 5:25pm
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Hi
any views on centurion bank.the stock doesnt seem to move above 40 since last many trading sessions.is there any bad news?
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Posted By: xbox
Date Posted: 11/Jun/2007 at 5:35am
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Whole Banking sector is under pressure on .. 1. possible CRR hike.
2. Slow down in credit growth.
3. NIM squeeze.
If banking is feeling the heat surely it will pass on to other sectors but for time being possibility of CRR hike is spoiling the game.
CBoP is take-over target for sure. ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: vivekkumar_in
Date Posted: 11/Jun/2007 at 8:01am
Vipulji, Do you think another CRR hike is in the offing now that inflation has come under 5% ? ------------- Often we forget there's a company behind every stock,and there's only one reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies. P Lynch |
Posted By: xbox
Date Posted: 11/Jun/2007 at 10:43am
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Do you think another CRR hike is in the offing now that inflation has come under 5% ? ----------------- Mr. Reddy pls comment....
 It is unpredictable to judge any top or bottom. One can only imagine post-event era. ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: vivekkumar_in
Date Posted: 12/Jun/2007 at 11:13pm
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ha ha ha .. I wo0uld very much welcome a CRR hike since I have some cash in hand to invest... But who cares about what I think huh... All they worry about are Inflation numbers, economy overheat & stuff...  ------------- Often we forget there's a company behind every stock,and there's only one reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies. P Lynch |
Posted By: CHINKI
Date Posted: 11/Jul/2007 at 12:51pm
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‘We will be on the lookout for acquisitions’
CEOs of foreign banks in India are bullish on the Indian market and are ready to commit any amount of capital to seize growth opportunities CEOs of four leading foreign banks in India—Sanjay Nayar of Citibank, Neeraj Swaroop of Standard Chartered, Romesh Sobti of ABN Amro and Vishwavir Ahuja of Bank of America—were asked to give their views on six contemporary issues—the Indian market, foreign banks’ edge over competition, profile of competition, capital infusion to support growth in India, innovations and, finally, on their plans in April 2009 when the Indian banking regulator is set to revise the ownership norms. Given a choice, all four are keen to grow in India through acquisitions. They admit that competition is intensifying both from private banks as well as their counterparts in the public sector, and the foreign banks are no longer the sole innovator in the Indian financial space. Yet, all four CEOs are bullish on the Indian market. They are ready to commit any amount of capital to seize growth opportunities with both hands. Edited excerpts: Your take on the Indian market? Sanjay Nayar:We have been in India for over a century now. Our role has evolved from a trade finance bank to a bank that provides a complete suite of products for everybody. We are bringing the power of Citigroup to a huge client base in India. Rapid urbanization and growing investments in manufacturing and services sectors have made India attractive. We have been a local bank catering to local needs all along. Five-and-a-half years ago, when I came back from New York, I had a clear mandate—“Make it even further local and be embedded in the country”. That’s what we have been doing. Client acquisition has always been a priority for us. On the one hand, we are servicing the high net worth corporate clients and, on the other, reaching out to the consumer finance clients who have earnings of less than Rs 1 lakh per year. We have acquired a significant chunk of the small and medium enterprise business. Now we are offering banking services to unbanked consumers. This is no generosity. We see a large business opportunity there. Neeraj Swaroop:We entered India in 1858. The profile of customers and products have been evolving—from traditional banking products, such as savings accounts, to widespread use of ATMs, personal loans, mortgages and auto loans. Today, sophisticated customers are asking for personalized services; traders are looking for sophisticated risk hedging mechanisms; and corporate clients are looking at outbound acquisitions. India is a core market for Standard Chartered globally, accounting for 14-15% of the bank’s global balance sheet, up from 8.8% last year. Romesh Sobti: India offers a level playing field in terms of products and services and a target market with a critical mass. Fifty per cent of the Indian population is below 25 years of age and this large group is accessing consumer debt. All these make the Indian market attractive for us. We believe that with smart coverage we can have access to a large fee pool in areas such as insurance and asset management, foreign exchange business, etc. Where we score over local banks, is we do not have to spend time making products such as derivatives. All we have to do is to customize them to service our Indian customers. We do not have to start a production factory. Vishwavir Ahuja:We have been in India since 1964 and have seen the ambitions of Indian entrepreneurs rise as the economy liberalized. Being a wholesale bank, we have seen the increase in the need for finance among Indian corporations. Today we are a preferred choice for large Indian firms such as Reliance Industries, Infosys Techonologies and Wipro Technologies. India is a top priority nation in terms of scope among the 39 countries where we operate. Your edge over competition? Swaroop:Our edge is service and the global relationships that we offer to our clients. Corporate clients are harbouring ambitions of cross-border presence and we can provide them end-to-end services. For instance, in the recent Maxis-Aircel deal, we were bankers to Maxis in Malaysia and Aircel in India. Our edge is also intellectual property. We are present in sophisticated markets and we understand structured finance products better than our local counterparts. When the banking regulator opens up the sector, we expect to be a market leader in product offerings to customers. Nayar: We can successfully juxtapose the global with the local. We are servicing every customer segment with a complete suite of products for individuals as well as corporations. I don’t see any other bank that has our width of operations. Our closest competitors in the private sector can’t match our expertise in global finance and leverage finance. Even other foreign banks do not have localized access to brokerage, capital markets and investment banking that we enjoy. Ahuja: Our edge over both foreign and private banks is our ability to service Indian corporations when it comes to cross-border deals. Large firms need banks with large balance sheets. With a global balance sheet of $1.5 trillion and expertise in several markets, we score over competition. Sobti: We will score over others when norms for overseas investments get more relaxed. The Reserve Bank of India is slowly moving towards a fully convertible currency. Today the outward investment for a retail investor is limited but soon there will be scope of a family investing $1 billion annually. This is where we come in. We have a huge network internationally and we are better equipped to provide global trade solutions and cash management. Your plan for infusing fresh capital for Indian operations? Ahuja:Our capital base as of March 2007 is Rs1,777 crore. We will not remit our profits to the parent bank. We have enough capital and would like to deploy it prudently. Swaroop:Over the last year alone, $1 billion has been brought into India operations. The parent bank has allocations for different countries but we do not have a country limit for India. We are totally committed to the Indian operations and are embedded as a local player. We will bring in our product expertise to the Indian market and concentrate on providing the best services to the customer. We are particularly bullish on wholesale and consumer banking and capital will never be a constraint for us. Sobti: We are well capitalized. We have not remitted our profits for the last 15 years—a huge number in itself. If you see the peer group numbers, we have the fastest-growing balance sheet in overall assets and advances. The parent fully understands the growth opportunity in India and we are not constrained either by country limits or by capital. The only constraint that we face is access (in terms of branch network). Nayar: We are adequately capitalized and India continues to be an important destination for the parent bank. Our commitment is servicing clients and gaining market share even with the constraints of access. Expectation from RBI when it reviews bank ownership norms in 2009? Sobti: We are not expecting a big bang change but a gradual change in the form of allowing foreign banks to acquire private banks. We have always been interested in inorganic growth. We will scout for opportunities when the scope increases. Till then, we will have to use our branches smartly to get the best access (to customers and fee pools). Swaroop:We are currently constrained by a limited number of branches and cannot access the large retail pool in tier II and tier III cities. We are eagerly waiting and watching the moves of the Indian central bank. We hope that policies are liberalized for our growth—both organically and inorganically. Assuming that the central bank will give foreign banks the liberty to acquire Indian banks, we will be interested, depending on the opportunities available and the cost of acquisitions. Nayar: The regulator has given us a well-documented road map. We are happy to wait and watch as it evolves. Things may happen a little later than 2009, depending on factors such as consolidation in the domestic banking sector and implementation of the Basel II norms. If you ask me for my wish list, I would say foreign banks should be allowed to float subsidiaries. We could become a wholly owned subsidiary of our parent and look and feel like an Indian bank. We will be on the lookout for acquisitions as and when the regulator allows it but till then we are concentrating on growing organically. Ahuja: We have adopted a wait and watch policy for 2009. We are expecting some liberalization in ownership norms but it is too premature to comment at this point. Foreign banks in India don’t seem to be innovative enough. Sobti: The field of innovation has widened. Ten years back, foreign banks were the sole innovators. Now you have private banks. This does not mean that foreign banks have stopped innovating. It’s just that you do not see innovations in isolation. And innovation today does not mean a radically new product; it means a little tweaking here and there. For instance, a credit card is no longer an innovation. But the fact that you can determine a limit on a credit card is an innovation. We have recently introduced a credit card that gives 2% cash back across all purchases. This is an innovation in a small way. Swaroop:I do not think foreign banks have stopped innovating. It’s just that the scope of innovations has become much larger with private banks getting much more access to the retail pool. Nayar: Citi has led the way on innovations and we still have quite a few firsts to our credit. For instance, we were the first to launch biometric ATMs in Dharavi (in Mumbai) and Hyderabad. We are the first to innovate on commodity hedging. The next space of innovations for us is clearly in the area of financial inclusion. We need to combine innovation with mobile commerce as we cannot have branches in remote rural pockets. Ahuja: Innovations are plenty on the debt side. A number of complex and sophisticated products are used by our clients worldwide. We did the first US private placement for companies such as Reliance Industries and Indian Oil Corporation in 2006. We are also ready with innovative products such as credit-default swaps. As the markets open up, we will be pioneering innovation on the debt front. Finaly, your take on competition? Sobti:Competition is already intense and it will get stronger. There will be a few more players coming in but the market is huge, growing at a rate of 25-30%. Nobody is worried about new players. What we should concentrate on is giving the consumer a different proposition. If you bring value to the customer by way of convenience, it engages her. Swaroop:Competition will intensify as public sector banks consolidate and new entrants enter wholesale and retail banking. In order to beat competition, we have to constantly keep innovating even with the constraints that we have. Our differentiator will be the value-added service that we offer to our clients. Ahuja: It is true that we have a lot of banks in the country but they are vying with each other on the same product segments and same markets. The need of the day is to increase reach and offer a complete range of banking services to the untapped markets beyond metros and Tier I cities. Nayar: I think competition will get stronger but we will have to differentiate in terms of value-added propositions and quality of service. Source : http://www.livemint.com/2007/06/29003829/We-will-be-on-the-lookout-for.html ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 11/Jul/2007 at 5:18pm
|
Foreign banks await RBI’s green signal to branch out
Constrained by the branch licensing policy, they are waiting for the sector to be opened up in April 2009 What do Citibank India head Sanjay Nayar, HSBC India CEO Naina Lal Kidwai and ABN Amro country executive in India Romesh Sobti have in common? All of them have set their eyes on domestic banks and, given a choice, they will acquire the target banks before the regulator says, “go”. They have the money, aggression and willingness to grow in a market that promises big margin business. Banking experts have no crystal ball to see the future landscape of the industry, but agree on the main ingredients: domestic mergers, more investment from foreign banks, some foreign takeovers of private banks and some consensual nuptials if the regulator opens up the sector. But the experts and foreign banks disagree on when, if and how much the regulator will do to welcome a greater foreign presence. Many of the big foreign banks had come to India in some form or the other as far back as a century and a half ago, but it was only in 2005 that the Reserve Bank of India (RBI) drew the first clear roadmap on how they could operate here. And RBI promised to re-evaluate these rules four years later. In the meantime, Indian banks were given time to strengthen their balance sheets, consolidate and overall become more robust, so that they could compete. The regulator, did not however, promise that it would take away the ring of protection around local players in April 2009, when the norms are due to be reviewed. Foreign banks in India are hoping and planning, but do not expect any major changes in 2009. Standard Chartered in India is watching the space closely. “We feel constrained with the number of branches that we have,” says Neeraj Swaroop, head of Standard Chartered Bank in India. “Assuming that the Reserve Bank of India allows foreign banks to acquire, we will be interested, depending on the opportunities available and their pricing.” Experts say, that before 2009, public sector banks would like to join forces, and note that finance minister P. Chidambaram has supported the idea. Yet public sector banks, like it or not, are unlikely to be taken over by foreign banks if the policy opens up in 2009, even though many are weak and ripe for a strong partner. It is the private sector banks that would be targeted. “Private sector banks, although more expensive, would be attractive targets for foreign banks,” says George Chrysaphinis, a financial institutions analyst with rating agency Moody’s Investors Service. “Public sector banks have significant legacy issues, namely huge ageing workforces, inefficient networks and poor working practices.” Sanjay Aggarwal, national industry director for financial services at KPMG India Pvt. Ltd says, “They (private sector banks) are not up to speed in terms of computerization and profitability.” Also, private banks in India are relatively affordable to foreign banks. India’s largest bank, ICICI Bank, has a market capitalization of about Rs86,000 crore while Kotak Mahindra, for example, has over Rs20,000 crore. Citigroup’s market cap is over $271 billion (about Rs11.1 trillion). “In the international context, Indian banks are still very small,” says Robin Roy, associate director at PricewaterhouseCoopers Pvt. Ltd. Banking analysts say foreign banks will be taking all this information into consideration as they form their strategies between now and 2009. They will be deciding whether to compete with Indian banks on volume, or go in for niche services as they have been, recently. They will be thinking about whether to expand geographically—maybe into smaller cities—or in their products and services, including offerings to small- and medium-enterprise (SME) clients. Roy says they are looking forward to newer models for SMEs and are expecting a relaxation on mandated lending. There may also be early meetings with private banks and investment bankers as some foreign banks scout the landscape for strong potential partners and acquisition targets. Roy says that clearly some will grow on their own, while others will look for ways to expand quickly. Despite all these possibilities, experts and foreign banks do not expect much to happen in 2009. “I don’t think 2009 is going to be a magic year where, suddenly, foreign banks can come in, start acquiring banks and become very large, but they will have a much more liberalized regime than what it is right now,” says H. N. Sinor, chief executive officer of Indian Banks’ Association (IBA), a premier banker body in the country. “But, still, it will take some time before they can have a complete free play in the system.” Aggarwal of KPMG India notes that 2009 is also an election year, and says, “I think the issue will get evaluated once the political climate is clear.” The foreign banks also agree that the political scenario could dominate the central bank’s decision. “We are not expecting any big bang to happen in 2009 itself,” says Romesh Sobti, country head for ABN Amro bank. “There may be a gradual change in ownership, but that will take a while. Till then, we will have to make smart use of our resources.” Others like Sanjay Nayar, chief of Citibank in India, also thinks that 2009 may not be a year of transformation, but hopes for the ability to be a wholly owned subsidiary of its parent. “Given the opportunity, we would be like any of our private banks in India, to look and feel like an Indian bank,” says Nayar, adding that acquisition may not be high on his agenda. “Till 2009, we will have grown substantially organically. Valuations may not be the best then, so acquisition will depend on what the market has to offer at that time. Till then, we will wait and watch. The timing may not be certain but most experts agree that the sector will have to open, and there have already been some signs. Roy notes that the increased cap in individual investment abroad is serviced by foreign banks. Ashwin Parekh, partner and national leader of global financial services at Ernst & Young Pvt. Ltd, highlights two occasions when individual permission was granted by the banking regulator. The first was to Citibank for its investment in Indian mortgage major Housing Development and Finance Corp. (HDFC), and the second, to Rana Talwar, former Standard Chartered global chief executive who took over Centurion Bank through a fund. “There will be more risk-based regulation,” Roy says. “Depending on the risks that a foreign bank presents, the regulator will try to bring in different regulations.” Experts and the foreign banks say the regulator will be concerned about the state of domestic banks and their ability to compete and based on that it will decide how far to open the faucet. “They (the foreign banks) will become a major player if they are allowed free operations in India,” Sinor of IBA says. “I am very sure they would immediately emerge as the market leader.” The banks, particularly the public sector ones, have sufficiently strengthened their balance sheets, but have not joined forces to be able to compete with the foreign banks on scale and size. In addition to these domestic concerns, many experts say that RBI will consider how welcome Indian banks are abroad when they try to expand. Roy says, “If reciprocity is not the order of the day, the local regulator will play the game as the others have played it.” Traditionally, the driver for a majority of M&A deals in the Indian banking space is the regulator’s sensitivity to protect depositors’ money. While announcing the time frame for foreign banks’ play on Indian turf, ringfencing weaker financial intermediaries from predatory attacks, RBI has laid down certain norms for domestic players. For instance, all banking entities must have at least Rs300 crore net worth (capital and free reserves) and a wider investor base with no single player holding more than 10% stake. In case of one bank holding stake in another bank, it is capped at 5%. RBI has not laid down any timeframe for this but analysts feel the deadline will coincide with the opening up of the sector. Only a handful of old private banks have not yet fulfilled these norms. If they fail to do so by April 2009, they may be offered on a platter to the foreign player if RBI decides to open the sector. Source : http://www.livemint.com/2007/06/29003816/Foreign-banks-await-RBIs-gree.html?pg=2 ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: tyler_durden
Date Posted: 18/Jul/2007 at 7:12pm
|
The 2 frontrunners discussed under this topic were :
1. CBoP 2. Yes Bank Both re trading at PE multiples of 50+(52-54)... but CBoP has face value of 1 re and yes bank has FV of 10/- .... so in the light of this is it safe to say that yes bank is a better bet as compared to CBoP or still there is something which favours CBoP ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: basant
Date Posted: 18/Jul/2007 at 8:47pm
|
Do not compare face values. Look at market Cap!Otherwise SAIL trades at Rs 150 and Fin Tech at Rs 2900 does not mean Fin tech is more valuable then SAIL. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: deveshkayal
Date Posted: 18/Jul/2007 at 10:23pm
|
I think CBoP & Yes Bank both are great takeover target though Rana Kapoor will not give up easily..so two to tango!! ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: xbox
Date Posted: 18/Jul/2007 at 5:18am
|
I think CBoP & Yes Bank both are great takeover target though Rana Kapoor will not give up easily..so two to tango!!
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YES Bank could be disappointment here. CBoP is both shikaar & shikaari. ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: CHINKI
Date Posted: 18/Jul/2007 at 9:52am
|
What about Karntakata Bank??
Professionally managed and well spread in Karnataka. ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: xbox
Date Posted: 18/Jul/2007 at 10:11am
|
What about Karntakata Bank??
------------
I feel this will be picked by some domestic bank. MNC Bank prefers wide spread presence not any regional one. Is CBoP listening ? ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: tyler_durden
Date Posted: 18/Jul/2007 at 11:56am
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so face value does not count??
i thought if 2 shares have similar financials....then ratio of market price to face value can also be considered to compare the 2.....
on mcap both yes bank and cBoP re almost same...
PE again both re equivalent
Both re going to be targeted by foreign banks....
am i not paying extra premium for CBoP?? mkt price = 41 and FV =1....
Yes bAnk 180 and FV 10???
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kindly suggest and throw some light so that we all can understand basics of FV ... whether it is imp or not and what is its significance?? ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: basant
Date Posted: 19/Jul/2007 at 12:02pm
|
i thought if 2 shares have similar financials....then ratio of market price to face value can also be considered to compare the 2..... -
___________________________________________________________
EPS, Market cap etc are all dependent on number of shares so two shares having similar face values and similar financials will have dissimilar net profits and number of shares or that could be same also but personally I NEVER look at the face value. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tyler_durden
Date Posted: 19/Jul/2007 at 12:14pm
|
ok good enough.... so sir which seems to be better with a 2 year perspective??
CBoP --- wide network...takeovers ... into retail n card segment
Yes bank --- great management ... planning to enter retail n cards....
CBoP is like a senior cricketer and yes bank is u-19 and buzzing to a make a mark....
wats ur choice?? ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: basant
Date Posted: 19/Jul/2007 at 12:17pm
|
Since you hold a diversified portfolio I suggest you buy both CBOP appears cheap to YBank on traditional parameters but good things are always expensive. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tyler_durden
Date Posted: 19/Jul/2007 at 12:50pm
thats wat i was thinking...60% to yes bank and 40% to CBoP...  ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: CHINKI
Date Posted: 21/Jul/2007 at 2:51pm
|
The M&A scene in the banking sector remains as alive as ever, despite the fact that ‘misses’ have outnumbered ‘hits’ in recent times. The latest most widely discussed one is a possible Canara Bank-Dena Bank deal, of which there’s still no news. However, the Centurion Bank of Punjab-Lord Krishna Bank deal seems luckier and has entered the final lap. Now, Kolkata-based Allahabad Bank (AllBank) is making a pitch for a controlling stake in at least one South-based private bank. AllBank, which has a capital of Rs 447 crore, has started the process and has shortlisted South Indian Bank and Lakshmi Vilas Bank as possible targets. It has mandated Ernst & Young to identify block holders of equity in both these banks, so that the acquisition process can be streamlined. SOURCE: http://economictimes.indiatimes.com/Banking_sector_gears_up_for_more_MAs/articleshow/2222379.cms - ET ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: tyler_durden
Date Posted: 23/Jul/2007 at 7:33pm
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ING do seems to be a good candidate... unlike CBoP AND Yes it trades at PE of 27 ... compared to 50+ of yes and CBoP...has 380 branches....
does it makes sense to choose ING over yes and CBoP ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: basant
Date Posted: 23/Jul/2007 at 8:08pm
|
SOmetimes we need management bandwidth (vision) to make things happen. Aditya Puri, Deepak perikh, KV Kamath,Rana Kapoor are names that can lead from the front. In fact these are the people who have made the HDFc and the HDFc banks of today.
Banking is again a commodity business though HDFC Bank is a huge brand I do not think it can charge even 0.25% extra on a loan from a customer because he is banking with HDFC bank.What these people do is get the processes correct and manage the growth.
So before you get set to buy a Dena, Allahabad, Federal or whatever make sure you know who is managing your money (leading the bank). ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tyler_durden
Date Posted: 13/Aug/2007 at 1:51pm
|
At 11:31 am, http://www.moneycontrol.com/india/stockpricequote/banks-private/centurion-bankpunjab/11/44/CBP01 - Centurion Bank of Punjab is quoting at Rs 40.50, up Rs 1.75, or 4.52%. It has touched an intraday high of Rs 40.90 and an intraday low of Rs 39. < ="http://202.87.40.52/promos/sponsor_news.js">There was a block deal of 10 lakh CBoP http://www.moneycontrol.com/india/news/action/block-dealcenturion-bank-stock-up/13/20/297671# - - shares in FII Segment at Rs 44.50 per share. source: MC.com ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: xbox
Date Posted: 13/Aug/2007 at 2:41pm
|
CBoP has large auto loan exposer. Expect high NPA due to recent increase in interest rates. ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: snehaldani
Date Posted: 25/Aug/2007 at 9:12pm
|
Kerala High Court has dismissed the petition that was stalling the merger of Lord Krishna Bank with CBoP. Now the RBI approval for the merger is awaited which should come before the end of August,07.
RBI approval will be the next trigger for the price of CBoP to move upward by around 5/10 % depending upon the market sentiment then. ------------- Snehal P.Dani |
Posted By: us121
Date Posted: 25/Aug/2007 at 8:39am
|
Today's news: Board of SBS (state bank of saurashtra, non listed) and SBI have cleared the proposal for their mergers. ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: tyler_durden
Date Posted: 27/Aug/2007 at 3:50pm
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was going thru these posts again....i recalled a meeting with my friends father..(he is a director with CBoP)....we were discussing banking space post 2009...he told me that they have clear instructions from the top to bring NPA to 0.....for this CBoP is calling all the people with bad debts and asking them to give watever they can and are closing the files....they want to bring the NPA down to 0 by end of next year.....also bank of punjab head quarters re shifting from chandigarh to either gurgaon or mumbai .... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: basant
Date Posted: 27/Aug/2007 at 4:02pm
XBox let us assume that takeover takes later or does not happen. What kind of a CAGR in EPS can an investor expect to make. That is because I know of people sitting with South indian Bank for over 10 years - waiiting for a takeover. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tigershark
Date Posted: 27/Aug/2007 at 5:02pm
|
is the sluggish performance of the hdfc bank stock due to the increase in free float after the adr issue ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: basant
Date Posted: 27/Aug/2007 at 5:24pm
|
Could be but personally I am looking at this as an opportunity for long term money. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: deveshkayal
Date Posted: 27/Aug/2007 at 12:42pm
|
I change my view on Yes Bank that it will be taken over thanks to my scuttlebutt approach, one investment banker said,"Yes Bank was interested in buying Bank of Rajasthan as Pravin Kumar Tayal was looking to sell his 44% stake but only for 140-150/share.
Clearly, promoters want to make this bank BIG !!! ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: xbox
Date Posted: 27/Aug/2007 at 5:16am
|
XBox let us assume that takeover takes later or does not happen.
-------------
Basant jee, in that case there is no need to buy CBoP. There are much better banks available. On otherhand CBoP playing big role in M&A post-2009 is as sure as sun rise in post-2009.
YES Bank has no such play as sure as ... ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: tyler_durden
Date Posted: 28/Aug/2007 at 7:27pm
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------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: us121
Date Posted: 28/Aug/2007 at 8:11pm
|
tylerji, u may refer following two links: http://www.theequitydesk.com/forum/forum_posts.asp?TID=1127&KW=scuttlebutt&PID=33224#33224 http://www.theequitydesk.com/forum/forum_posts.asp?TID=1127&KW=scuttlebutt&PID=33229#33229 Fisher brought a personal approach to finding great growth stocks, too. He limited the stocks he bought to areas he knew a lot about. He also made famous the ’scuttlebutt’ technique of getting the low down on a company by talking to suppliers, customers, competitors and employees. ---------------------- WHAT SCUTTLEBUTT CAN DO Merriam-Webster defines "scuttlebutt" as: ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: tyler_durden
Date Posted: 28/Aug/2007 at 8:17pm
|
thanks a lot sir...that was really nice of you ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: tyler_durden
Date Posted: 01/Sep/2007 at 11:52am
|
Insider news....Anil ambani is having an eye on CBoP....i dont know whether its feasible or not..but in months to come we might see anil takin a stake in it....
ps: i hold this stock ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: basant
Date Posted: 02/Sep/2007 at 12:06pm
|
Temasak of Singapore already has a tie up with Centurion Bank of Punjab so ADAG will have some competition there. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tyler_durden
Date Posted: 02/Sep/2007 at 12:29pm
|
i didn't mention that hdfc bank has also shown interest....because at first even i didn't believed it is possible...why hdfc will show interest in CBoP??? any particular reason....2008 holds something big for this stock....performance wise it will be not be matchin the likes of yes bank but yes MnA will keep this stock alive.... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: ramki830
Date Posted: 03/Sep/2007 at 8:24pm
Hey, with Anil Ambani, you can say that the phrase "not feasible" simply does not exist. However, CBoP , IMHO could be a can of worms, but ADAGs can digest even pythons ...
|
Posted By: ramki830
Date Posted: 03/Sep/2007 at 8:24pm
| Small Private sector banks both Old Generation and New generation ones could be takeover targets- think of bank of Raj, Karnataka Bank, and City Union Bank. |
Posted By: basant
Date Posted: 03/Sep/2007 at 8:36pm
|
How about Federal. it is like an orphan after ICICI has exited its stake from this one. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tyler_durden
Date Posted: 03/Sep/2007 at 8:41pm
|
city union bank is a great target....and its growing at a good pace.. ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: Mohan
Date Posted: 18/Sep/2007 at 6:21am
Seems like the buyout games have begun....
Source : BS ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: tyler_durden
Date Posted: 19/Sep/2007 at 1:48pm
|
yes this is a big news....now royal bank of scotland has also entered india and their new office is being contructed opposite to my office....from watever i have heard the real show will begin from feb-mar 2008 ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: abrar19
Date Posted: 19/Sep/2007 at 1:54am
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why only five indian private banks? what about like Bank of rajasthan, federal bank and south india bk etc. |
Posted By: xbox
Date Posted: 19/Sep/2007 at 5:25am
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CBoP is both shikaar & shikaari. It has biggest role, post-2009. |
Posted By: basant
Date Posted: 19/Sep/2007 at 8:21am
Just think whether any big global bank would be interested in a regional Bank? People would look for pan india presence and not any regional bank which is localised in any specific state or cluster.
Peter Lynch says never buy for take over but buy the best company in the industry and returns will follow. He said that in his experience takeover always came asa surprise. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: basant
Date Posted: 22/Sep/2007 at 1:09pm
|
This is a roadmap for the 2009 Private bank party!
http://www.irp.unisg.ch/org/irp/web.nsf/df76d44a9ef44c6cc12568e400393eb2/df75a2808a91db23c1256f8500365d0f/$FILE/Road%20Map%20For%20Presence%20of%20Foreign%20Banks%20in%20India.pdf - http://www.irp.unisg.ch/org/irp/web.nsf/df76d44a9ef44c6cc12568e400393eb2/df75a2808a91db23c1256f8500365d0f/$FILE/Road%20Map%20For%20Presence%20of%20Foreign%20Banks%20in%20India.pdf
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: abrar19
Date Posted: 22/Sep/2007 at 8:36pm
| Ok noforeign banks but apana ICICI or Relcap can buy or would buy these regional banks.But iIsee an election in between and if people like Karat etc get to do what they are doing right now, don't be surprised if these 2009 reforms too are pushed back for another 3 years |
Posted By: gcpradhan1
Date Posted: 22/Sep/2007 at 9:47pm
| Thanks a lot Basant Jee for providing that informative link. It gave me a clear idea about the guidelines and regulations pertaining to Foreign banks operations after 2009 onwards. But again it will depend on these politicians. Who knows they will push it for another few years. |
Posted By: dhanabbal_g
Date Posted: 24/Sep/2007 at 1:15pm
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Is ING eying Cbop/Kotak? link http://timesofindia.indiatimes.com/India_Business/Is_ING_eyeing_Centurion_Kotak/articleshow/2396033.cms - here |
Posted By: tyler_durden
Date Posted: 24/Sep/2007 at 1:54pm
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i heard that too in CNBC TV18 today morning.... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: Mohan
Date Posted: 25/Sep/2007 at 1:33am
Basantji, How is JP Morgan Chase able to hold more than 5% in HDFC Bank while HSBC was made to reduce its holding in Axis Bank ? ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: basant
Date Posted: 25/Sep/2007 at 7:38am
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Maybe it is through the investmnt arm. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Mohan
Date Posted: 25/Sep/2007 at 11:18am
That is what does not make sense. How they are allowed to invest more than 5 % unless they are one of the original promoters of the bank, which I think they are not. I don't think there are one set of rules for everyone else and then another for JP Morgan Chase. Does anyone else have a clue ? ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: basant
Date Posted: 03/Oct/2007 at 3:48pm
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Bought Axis Bank today in panic. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: smartcat
Date Posted: 03/Oct/2007 at 4:17pm
Why did you panic? Afraid that it would run up? ------------- |
Posted By: smartcat
Date Posted: 03/Oct/2007 at 4:20pm
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(added)
or wait.. Did you mean 'I added Axis Bank when the market panicked midway today?"
|
Posted By: basant
Date Posted: 03/Oct/2007 at 4:23pm
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Panic means that the stock was panicking not me!!! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: smartcat
Date Posted: 03/Oct/2007 at 4:29pm
| Thought so. |
Posted By: basant
Date Posted: 14/Oct/2007 at 7:49pm
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Which means, as the competition already exists, 2009 may not herald a dramatic change. Says Aditya Puri, managing director, HDFC Bank: “Foreign banks and their NBFCs are already into consumer finance, credit cards, the broking business, http://www.businessworld.in/content/view/1242/1299/# - takeover route once it is allowed. HSBC’s aborted attempt to take a stake in UTI Bank is a case in point, while ING has successfully taken over Vysya Bank. In recent years, foreign bank participation has increased tremendously in several developing countries. In Argentina, Chile, the Czech Republic, Hungary and Poland, more than 50 per cent of banking assets are in foreign-controlled banks
Read the full article here:
http://72.14.235.104/search?q=cache:mzTICrG4d7gJ:www.businessworld.in/content/view/1242/1299/+rbi+%2B+Bank+takeover+2009&hl=en&ct=clnk&cd=4 - http://72.14.235.104/search?q=cache:mzTICrG4d7gJ:www.businessworld.in/content/view/1242/1299/+rbi+%2B+Bank+takeover+2009&hl=en&ct=clnk&cd=4 ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: omshivaya
Date Posted: 14/Oct/2007 at 8:49pm
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Very nice article. Thank you Basant sir. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: basant
Date Posted: 14/Oct/2007 at 10:38am
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Apparently Axis bank has come out with block buster results would have to check up in the back drop of increased equity. It remains an excellent play on the Indian Banking industry for someone who is concerned about capital protection and still seeks growth.. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |