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deveshkayal
Senior Member
Joined: 04/Sep/2006
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Posts: 3903
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   Posted: 01/Dec/2007 at 1:05pm |
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Deutsche Bank Equity Research has maintained a BUY recommendation on Centurion Bank of Punjab. The bank has very rapidly tackled the issue of rising NPLs in 2-wheeler finance by deliberately tightening credit filters and withdrawing from some regions. Centurion is also preemptively rationalizing the personal loans portfolio to preclude NPLs spinning out of control. Here too filters have been tightened and the bank is focusing more on the segments which have demonstrated favourable credit loss characteristics.
Growth, however, has not faltered as SME lending has grown 140%, mortgages 100% and construction equipment 22%. Integration of the merger with Lord Krishna Bank (LKB) is smoother than initially apprehended. Technology should be integrated by Apr'08. Low-cost deposits in these branches have risen from 16-17% to 19-20%.
With NIM having stabilized and asset quality managed, concerns have reduced. Deutsche maintain BUY with a target of INR55.
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"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
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kulman
Senior Member
Joined: 02/Sep/2006
Location: India
Online Status: Offline
Posts: 9319
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Posted: 03/Dec/2007 at 9:38pm |
Fullerton India Credit Company (FICCL), one of the largest capitalised NBFCs, is targetting a 100% jump in loan disbursements in 2008 from Rs 2,500 crore in 2007. The company has a loan portfolio of Rs 1000 crore till date.
"We will disburse Rs 5000 crore in 2008-09 and will double the branch network. We currently have a customer acquisition rate of over 20,000 per month and this is likely to get scaled up to over one million customers per annum by the end of the next year. We hope to break even some time next year," said GS Sundararajan, MD & CEO, FICCL.
The company has a committed capital of $300 million from the parent company of which $200 milion has already been pumped in and $100 million will be infused next year, said Sundararajan.
Over the next 18 months, Fullerton India plans to roll out 700 branches.
The company besides its own capital issues commercial paper which is AAA rated. The company will also be coming up with long term debentures of 2 to 3 years. The cost of funds is 7.5% to 8.5%. The ratio of salaried customers to self employed customers is 50:50. The average ticket size of the salaried customer is Rs 35,000 while the average loan size of the self employed is Rs. 1 Lakh.
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Life can only be understood backwards—but it must be lived forwards
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xbox
Senior Member
Joined: 10/Sep/2006
Online Status: Offline
Posts: 2001
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Posted: 03/Dec/2007 at 4:37am |
Originally posted by kulman
Fullerton India Credit Company (FICCL), one of the largest capitalised NBFCs.....
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NBFCs ke baare me kya kahu!! Imagine muscle power of RelCap and growth in this segment. High NPA or no-NPA, these NBFCs are capturing loan share from banks. War in retail loans will continue & banks are to loose a bit..yes even private banks but pie is too big to panic.
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Don't bet on pig after all bull & bear in circle.
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kulman
Senior Member
Joined: 02/Sep/2006
Location: India
Online Status: Offline
Posts: 9319
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Posted: 03/Dec/2007 at 7:47am |
These Fullerton realted posts may be moved to ....NBFC - New Kid on the Block
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Life can only be understood backwards—but it must be lived forwards
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
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Posted: 03/Dec/2007 at 8:03am |
Fullerton has a distribution agreement with CBoP
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'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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kulman
Senior Member
Joined: 02/Sep/2006
Location: India
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Posts: 9319
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Posted: 04/Dec/2007 at 10:18pm |
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Life can only be understood backwards—but it must be lived forwards
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
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Posts: 18403
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Posted: 06/Dec/2007 at 9:35am |
Seems someone got interested in this one or was it the TED effect. How does it matter as long as we keep making money.
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'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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MPD05
Senior Member
Joined: 31/Oct/2007
Location: United States
Online Status: Offline
Posts: 140
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Posted: 06/Dec/2007 at 11:14am |
Originally posted by basant
Seems someone got interested in this one or was it the TED effect. How does it matter as long as we keep making money.
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Well said, Basantji! Edelweiss identified CBOP as its top banking pick in its most recent monthly report. But as you said, I don't really care as long as the money keeps rolling in!
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