-As per estimation of most analysts indian retail savings
will touch two trillion dollars in next ten years.
-Central bank has third largest network amongst all banks.
-Cheap on all ratios.
-Quoting cheaper than some of pressure cooker and pizza
companies.It is much difficult to set up a bank than to
set up pizza and pressure cooker company.
-HDFC bank,Yes bank remain top picks in banking but they
are quoting at a valuation where growth for next three
years factored in.
-Central bank is quoting at valuations less than usd two
billion.Comparing similar sized banks overseas and amount
of opportunity bank looks extremely attractive.
-I must agree that most of PSU banks still look cheap and
can be considered for investment. I am trcking central bank for some time now and comfortable with central bank
investment closer to book value.
Walk into a branch of any of the banks mentioned below and look at the quality of customer service offered.
Originally posted by koolvalue
-As per estimation of most analysts indian retail savings
will touch two trillion dollars in next ten years.
-Central bank has third largest network amongst all banks.
-Cheap on all ratios.
-Quoting cheaper than some of pressure cooker and pizza
companies.It is much difficult to set up a bank than to
set up pizza and pressure cooker company.
-HDFC bank,Yes bank remain top picks in banking but they
are quoting at a valuation where growth for next three
years factored in.
-Central bank is quoting at valuations less than usd two
billion.Comparing similar sized banks overseas and amount
of opportunity bank looks extremely attractive.
-I must agree that most of PSU banks still look cheap and
can be considered for investment. I am trcking central bank for some time now and comfortable with central bank
investment closer to book value.
With most of the old staff is scheduled to retire in
next three to four years and will be replaced by new staff,
customer service difference between private banks and psu
bank will narrow down.
I think given choice most of private sector bank staff will
happily join PSU banks when such oportunnity arises.
Over a period of time PSU banks will definately create
value for there shareholders
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
Posted: 08/May/2011 at 10:01am
Large PSU banks at Book value less then 1.25 is worth a look but only for a completely diversified portfolio for the concentrated ones the opportunities elsewhere are too compelling to ignore.
'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
Hi,
Basantji nice to hear from you in this forum again.
Govt of India is the biggest wealth creator in Indian
stock market.Most of the wealth created in Indian equity
markets is created by sectoral rerating after change in Govt policies or privatisation.
Ultimately when Govt decides to get rid of PSU banks and
put them on block how the buyers will value the banks.Will
central bank with vast network and pan India reach will
continue trading less than usd 2 billion marketcap.
The whole process may take 10 to 15 years,central bank may languish for years at these levels.But for people
who are interested in terminal value only surely this
stock offfers ten bagger in ten years.
For retail investors like me the stock offers best sip
kind of investment where I am slowly accumulating this
stock close to or below book value whenever there is
correction in this stock.
I went to submit application form for Central Bank's rights issue in Bangalore and service I got was at par if not better than ICICI and Axis. They helped me fill the form. So service premium for private bank should not be huge.
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