Are The Indian Public Sector Banks Finally Entering Calmer Waters?

Are The Indian Public Sector Banks Finally Entering Calmer Waters?

20 comments: Aprilkets In April 2017 : Movers & Shakers Of The Month

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  • ahmad                                                                              
    DIGAMBER NAIK
    jan 29,2019 at 09:35 - Reply

    Thankful for this input ,niceone

    • ahmad                                                                              
      Team StockAxis
      feb 02,2019 at 02:57

      Dear DIGAMBER NAIK,

      Thank you for visiting us and believing in us!

      We recommend you to also read following blogs.

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  • ahmad                                                                              
    Lalitagauri
    jan 29,2019 at 05:25 - Reply

    Thanks again for your valuable guidance about PSUS.

  • ahmad                                                                              
    R VIJAYA SAGAR
    jan 26,2019 at 03:55 - Reply

    WORTH READING AND GOOD INSITE

    • ahmad                                                                              
      Team StockAxis
      feb 01,2019 at 10:18

      Dear R VIJAYA SAGAR,

      Thank you for visiting us and believing in us!

      We recommend you to also read following blogs.

      5 Rules to Deal With a Volatile Market

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  • ahmad                                                                              
    PERCY
    jan 23,2019 at 03:06 - Reply

    WORTH READING AND GOOD INSITE

  • ahmad                                                                              
    Kalyan Mukherjee
    jan 22,2019 at 11:52 - Reply

    An excellent input for value investors like me. In depth study of all parameters of PSU banks and their comparison with their peers in the Private Sector banks was a revelation. More in depth research and comparisons of PSU banks with their Private sector peers will throw up astonishing facts which would be beneficial not only for the investor but also, holistically for the banks as well. Altogether, very interesting research and facts which many investors would not be aware of. Thank you. As always, you have reinforced my faith in your ability to zero in on stocks which lack glamour but will be gems in the future.

    • ahmad                                                                              
      Team StockAxis
      jan 25,2019 at 10:14

      Dear Kalyan Mukherjee,

      Welcome Sir and thank you for your appreciation. We are happy that our article could help you further your insight into the market and in stock selection. If we can help any further please call us on our number and we will assist you to the best of our capability.

      Thank you for visiting us and believing in us!

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      StockAxis Market Intelligence (Commentary for December 2018; Outlook for January 2019)


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  • ahmad                                                                              
    QG.RAMAKRISHNARAO
    jan 21,2019 at 07:10 - Reply

    A very .usefuland critical analysis for the benefit of investors.THANQ AND AWAIT MORE AND MORE SUCH INPUTS.

    • ahmad                                                                              
      Team StockAxis
      jan 25,2019 at 10:05

      Dear QG.RAMAKRISHNARAO,

      Thank you, Sir, for your kind words. It means a lot to us.

      We recommend you to also read following blogs.

      5 Rules to Deal With a Volatile Market

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      Team Stockaxis

  • ahmad                                                                              
    Sud
    jan 20,2019 at 10:56 - Reply

    Very good study, will be a useful investment tool.

    • ahmad                                                                              
      Team StockAxis
      jan 21,2019 at 11:20

      Dear Sud,

      Thank you, Sir, for your kind words. This means a lot to us.

      We recommend you to also read following blogs.

      5 Rules to Deal With a Volatile Market

      Using the EV/EBITDA multiple smartly!


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  • ahmad                                                                              
    Sanjoy
    jan 20,2019 at 09:01 - Reply

    Very informative article indeed. Well, the PSU banks are now in attractive valuation, but that is under the assumption that there is no further wrong-doing. The dire state that they are in now are mainly due to the procedural lapses that they made earlier. Can you ensure that process improvements enforced by RBI will restrict them making the same mistake (both intentional and non-intentional) again and again.

    • ahmad                                                                              
      Team StockAxis
      jan 21,2019 at 11:55

      Dear Sanjoy,

      Thank you for your comment, Sir.

      We understand your view but would like to take the liberty to add that default and bankruptcy are part and parcel of the banking sector, what needs to be seen is how much can this be controlled and structured by the banks.

      With the introduction of IBC, we believe that the ability of banks to come to an early and faster resolution will be taken care off. Also, with some stringent policies and oversight being adopted by RBI, we see banking adopting better core banking solutions to address compliance, unauthorized transaction, and disbursal without following due diligence.

      This will streamline banking sector over the period to come and help these institutions achieve better earnings.

      Regards,
      Team Stockaxis

  • ahmad                                                                              
    Harpreet
    jan 20,2019 at 07:20 - Reply

    Good write up

    • ahmad                                                                              
      Team StockAxis
      jan 21,2019 at 11:37

      Dear Harpreet ,

      Thank you, sir, for your appreciation.

      We recommend you to also read following blogs.

      5 Rules to Deal With a Volatile Market


      Regards,
      Team Stockaxis

  • ahmad                                                                              
    Shivram
    jan 20,2019 at 09:33 - Reply

    Nice article 👍

    • ahmad                                                                              
      Team StockAxis
      jan 21,2019 at 11:58

      Dear Shivram ,

      Thank you for visiting us and believing in us!

      We recommend you to also read following blogs.

      5 Rules to Deal With a Volatile Market

      Using the EV/EBITDA multiple smartly!

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  • ahmad                                                                              
    C A Birajdar
    jan 20,2019 at 05:57 - Reply

    Sir very good analysis. It gives the insight in bank valuations. However 1) To better understand, please send the same analysis for earlier years that is FY 2010-11, 2015-16, 2017-18. 2) Then only we will be able to see whether market has really undervalued PSU BANKS in FY 18. OR 3) Market all always valued and will value the PSU banks like it valued today .

    • ahmad                                                                              
      Team StockAxis
      jan 25,2019 at 11:44

      Dear C A Birajdar,

      Sir, we have forwarded your query to your assigned Relationship manager and will contact you shortly.

      Thank you for visiting us and believing in us!

      Regards,
      Team Stockaxis

  • ahmad                                                                              
    MINOO PRINTER
    jan 20,2019 at 12:47 - Reply

    YOUR ARTICLE ON BANKS IS EXCELLENT.

  • ahmad                                                                              
    Manohar Lal
    jan 19,2019 at 08:20 - Reply

    As detailed above we suppose the worst is over for the PSB.

  • ahmad                                                                              
    Vetriselvan Martin
    jan 19,2019 at 07:48 - Reply

    Very in-depth analysis. Shows your professionalism.

    • ahmad                                                                              
      Team StockAxis
      jan 21,2019 at 12:27

      Dear Vetriselvan Martin,

      Thanks, a lot Sir for your kind words. This helps us to boost our moral and keeps us coming up with such articles.

      We recommend you to also read following blogs.

      5 Rules to Deal With a Volatile Market

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  • ahmad                                                                              
    Mani Srikanth
    jan 19,2019 at 07:12 - Reply

    You are Right

  • ahmad                                                                              
    Madhava variar
    jan 19,2019 at 07:09 - Reply

    Well said.

    • ahmad                                                                              
      Team StockAxis
      jan 21,2019 at 11:19

      Dear Madhava variar,

      Thank you for visiting us and believing in us!

      We recommend you to also read following blogs.

      Using the Debt-Equity Ratio Smartly!


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  • ahmad                                                                              
    Rahivicky
    jan 19,2019 at 06:33 - Reply

    Ok

    • ahmad                                                                              
      Team StockAxis
      jan 21,2019 at 11:01

      Dear Rahivicky,

      Thank you for visiting us and believing in us!

      We recommend you to also read following blogs.

      5 Rules to Deal With a Volatile Market

      Using the EV/EBITDA multiple smartly!

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  • ahmad                                                                              
    Tirtharaj Khot
    jan 19,2019 at 06:11 - Reply

    I completely agree with the logic as explained, but with one rider. Markets are slaves of earnings. Given the NPA scare and IBC imperatives, all banks will have to be very careful while lending which in turn will reduce the lending quantum and speed much unlike earlier. This will impact the NIM's of the banks, especially of the PSU with CASA for them going down. Therefore given the attractiveness in valuation based on above logic, it will still not reflect, at least take much longer than expected, in the pricing and the market capitalization of the PSU. Therefore I feel we need to wait for few more quarters to see the ability of PSU to increase its loan books.

    • ahmad                                                                              
      Team StockAxis
      jan 21,2019 at 11:00

      Dear Tirtharaj Khot,

      We thank you for your time and appreciate your response to the article.

      We, however, beg to differ as IBC in no sense effects or controls the lending quantum or its disbursal rate. On the contrary, IBC has made a lot of hurdles that the banks were facing in the process to recover bad debts has been streamlined and the rate at which these banks can now recover or forced the defaulter into IBC has shown increased momentum.

      Thus, this will help these banks recover debt at a faster pace and provide them with much-needed liquidity, which they can then utilize in lending, therefore, increasing their NIM.

      Yes, we have observed the cautiousness in the overall financial sector but this cannot be a long term strategy.

      The new Governor has also instilled a lot of confidence and a new approach in the banking sector due to his Political-Institutional background, unlike the approach taken by the previous Governors with the institutional driven approach.

      Regards,
      Team Stockaxis

  • ahmad                                                                              
    Nimesh Makharia
    jan 19,2019 at 05:09 - Reply

    What about the Goverment enforcing Merger is the smaller psi bleeding banks with the larger Psu such as BOB etc . Is that a threat

    • ahmad                                                                              
      Team StockAxis
      jan 21,2019 at 10:33

      Dear Nimesh Makharia,

      We believe that the Merger of smaller banks with larger banks was the last remaining structuring in the banking sector that the industry was calling for from a very long time.

      Through consolidation, the government will be able to address all the pending issues of inefficiency in the Indian Public banking sector and internationally agreed set of measures developed by the Basel Committee on Banking Supervision in response to the financial crisis of 2007-09.

      Also, this will also create a better compliance culture in Indian PSB's.

      Hence, we see this action of the government in the right direction helping Indians PSB's to compete with their private rivals and attain global standards.

      Regards,
      Team Stockaxis

  • ahmad                                                                              
    rajneesh rao
    jan 19,2019 at 04:45 - Reply

    Logs is very nice ....

    • ahmad                                                                              
      Team StockAxis
      jan 21,2019 at 10:22

      Dear rajneesh rao ,

      Thank you for visiting us and believing in us!

      We recommend you to also read following blogs.

      5 Rules to Deal With a Volatile Market

      Using the EV/EBITDA multiple smartly!

      Regards,
      Team Stockaxis