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s_praharaj
Senior Member
Joined: 10/Sep/2006
Location: India
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Posts: 357
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   Posted: 07/Dec/2006 at 5:31pm |
Thanx vipul for the update and also starting the topic.
I also saw the news today in ET and HT.
This is a positive devolopment at this point of time for yes bank. As you might have observed , the major part of the business of YesBank is bulk deposit and bulk lending. Retail Business of Yes Bank is around 18% compared to nearly 40% for SBI. Even the worst public sector Bank has more than 28% in retail business. The retail business is cream where NIM is very high. YesBank was very often criticised because of their lack of focus on retail business.
Micro finance will come under retail priority sector lending where rate of intt will be much higher than the bulk corporate loans. Recently also YesBank has been sanctioned quite a good number of branch licenses. The new Branches with this micro finance initiative will definitely add to the profitability of YesBank.
If you would have seen the news item, you would have noticed that they will concentrate the micro-finance schemes initially in metro and urban areas. This is again a win-win situation as the defaulter rate in rural micro-finances is much higher than the urban and metro. Moreover micro finance has not been taken seriously by Banks in Metro as the Govt thrust of micro finace is still more for rural area. So YesBank will have a advantage to start with.
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Shashi Praharaj
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xbox
Senior Member
Joined: 10/Sep/2006
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Posts: 2001
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Posted: 07/Dec/2006 at 9:21am |
Retail Business of Yes Bank is around 18% compared to nearly 40% for SBI. Even the worst public sector Bank has more than 28% in retail business. The retail business is cream where NIM is very high. YesBank was very often criticised because of their lack of focus on retail business.
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A private bank without retail focus is difficult to imagine. Retail without proper presence means buring cash. I am surpriced with it. With just 24 branches, one can hardly be present in retail market.
As their number of branch increases, they will start retail portfolio aswell. They have mentioned it 2 months ago. All criticism is well accepted and worked upon (well in advance)
Valuation is streched but it will remain like this. As I said somewhere gold is never cheap.
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Don't bet on pig after all bull & bear in circle.
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xbox
Senior Member
Joined: 10/Sep/2006
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Posts: 2001
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Posted: 10/Dec/2006 at 7:24am |
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Don't bet on pig after all bull & bear in circle.
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xbox
Senior Member
Joined: 10/Sep/2006
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Posts: 2001
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Posted: 18/Dec/2006 at 4:53am |
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Yesterday 'FIDELITY INVESTMENT TRUST' picked 36.25 Lakh shares of YES Bank. Remember YES Bank is very close to it's all time high. Generally volume on this counter is very poor but as volumes are increasing I envisage more and more of such deals. So big fish are picking.
Edited by vipul - 18/Dec/2006 at 5:55am
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Don't bet on pig after all bull & bear in circle.
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
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Posts: 18403
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Posted: 18/Dec/2006 at 9:13am |
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Fidelity is a smart fund house and their investemnt carries much more weight then any other fund.
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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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xbox
Senior Member
Joined: 10/Sep/2006
Online Status: Offline
Posts: 2001
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Posted: 18/Dec/2006 at 9:58am |
FII holding pattern. This does not include Fidility purchase yet ...
| Arisaig Partners Asia PTE Ltd A/c Arisaig India Fund Ltd |
3929343 |
1.46 |
| 2 |
College Retirement Equities Fund |
3362909 |
1.25 |
| 3 |
Fid Fund Mauritius Ltd |
8195450 |
3.04 |
| 4 |
Reliance Capital Trustee Co. Ltd A/c - Reliance T |
3000000 |
1.11 |
| 5 |
HSBC Global Investment Funds A/c HSBC Global Invest |
6660937 |
2.47 |
| 6 |
RaboBank International Holding BV |
54000000 |
20 |
| 7 |
Chrys Capital II LLC |
15000000 |
5.56 |
| 8 |
Russell AIF Capital INC |
15000000 |
5.56 |
| 9 |
Citicorp International Finance Corporation |
20000000 |
7.41 |
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Total |
129148639 |
47.83 |
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Don't bet on pig after all bull & bear in circle.
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xbox
Senior Member
Joined: 10/Sep/2006
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Posts: 2001
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Posted: 21/Dec/2006 at 11:36am |
Yes Bank Ltd has completed the infusion of equity capital of INR 120 crores comprising of private placement of 10 million equity shares to Swiss Reinsurance Company, Zurich, Switzerland (Swiss Re). On this occasion, Mr Rana Kapoor, Founder / Managing Director & CEO, of the Bank said, "We are extremely pleased with this landmark transaction with a marquee investor of Swiss Re's pedigree, which is consistent across our overall high quality YES BANK investor base." "We continue to strengthen our capital base to scale our execution capabilities in our quest to become the World's Best Quality Bank in India," added Mr Kapoor.
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This is difference between YES Bank and next door private bank. They are doing private placements to top-notch players in the industry. Well I have not seen such high quality promoter pedigree in India before.
Again..there is nothing to boosts fundamentals as yet but then Basmati is always expensive than other kind of rice (even there is no buyer in the market).
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Don't bet on pig after all bull & bear in circle.
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basant
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Location: India
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Posts: 18403
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Posted: 22/Dec/2006 at 12:03pm |
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HDFC Bank trades at a PE of 30 times for the last 10 years and everyone says it is expensive so if Yes Bank is to come into the same league then it would trade at 30 plus PE if it does not then it means that there is something wrong.
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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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