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CHINKI
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Joined: 07/Feb/2007
Location: India
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Posts: 2827
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   Posted: 21/Jul/2007 at 2:51pm |
Banking sector gears up for more M&As
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: ET
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TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO
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tyler_durden
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Joined: 24/Oct/2006
Location: India
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Posts: 1615
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Posted: 23/Jul/2007 at 7:33pm |
Originally posted by reetesh
Just a tought if ING VYSYA BANK is to trade at Fy-08 book of 3.5 then it ING`s price would be around Rs.500(approx.) and today it is trading at 180 odd, great value... After 2009 anytime banks like YES, etc.. would be taken over by Bank like ING`s so for long long term I would prefer ING. But there current performance is not that great, but as would know, what you see and hear is already in price, market look forward.
ING today has 575 outlets of which 380 are branches, 42 ECs, 28 Satellite Offices and 127 ATMs. Additionally bank also has Internet Banking and Customer Service Line for Phone Banking Service.
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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
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If you aren't fired with enthusiasm, you will be fired with enthusiasm.
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
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Posts: 18403
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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).
Edited by basant - 23/Jul/2007 at 8:10pm
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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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tyler_durden
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Joined: 24/Oct/2006
Location: India
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Posts: 1615
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Posted: 13/Aug/2007 at 1:51pm |
At 11:31 am, 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 shares in FII Segment at Rs 44.50 per share.
It is trading with volumes of 1,378,563 shares, compared to its five-day average of 316,799 shares, an increase of 335.15%.
On Friday the share closed up 2.65% or Re 1 at Rs 38.75.
source: MC.com
Edited by tyler_durden - 13/Aug/2007 at 2:01pm
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If you aren't fired with enthusiasm, you will be fired with enthusiasm.
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xbox
Senior Member
Joined: 10/Sep/2006
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Posts: 2001
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Posted: 13/Aug/2007 at 2:41pm |
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CBoP has large auto loan exposer. Expect high NPA due to recent increase in interest rates.
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Don't bet on pig after all bull & bear in circle.
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snehaldani
Senior Member
Joined: 29/May/2007
Location: India
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Posts: 518
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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.
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Snehal P.Dani
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us121
Senior Member
Joined: 03/Dec/2006
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Posts: 442
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Posted: 25/Aug/2007 at 8:39am |
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Today's news:
Board of SBS (state bank of saurashtra, non listed) and SBI have cleared the proposal for their mergers.
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ABILITY will get u at d top. CHARACTER will retain u at d top
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tyler_durden
Senior Member
Joined: 24/Oct/2006
Location: India
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Posts: 1615
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Posted: 27/Aug/2007 at 3:50pm |
Originally posted by xbox
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. |
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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 ....
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If you aren't fired with enthusiasm, you will be fired with enthusiasm.
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